The economic news just keeps getting better. Take a look at this:
After a year of steady weakening against Bitcoin—plummeting from 100 microBTC down to 20—the dollar has finally started strengthening again in recent weeks.
There are some who have welcomed the dollar's slide, since it makes exports from the US ransomware industry more competitive. However, it's been disastrous for US consumers and companies who do their accounting in dollars and have seen the cost of imported ransomware demands increase by 5x. Making up even a bit of that is good news for them.
Can the dollar keep up its recent rise? Some experts say that the era of old school "money" is over and Americans need to get used to it. Others say this is overblown, and the underlying strength of the US criminal sector remains vibrant enough to keep the dollar strong in the long run. Time will tell.
LOL. When do we get emojis and gifs, though?
I don't think this is the correct comparison to use to judge the relative strengths of the dollar and the bitcoin. They are both fiat currencies, so they aren't real anyway. I used to think the British "Pound Sterling" was real, but I recently discovered that's just a name, there isn't any real sterling silver backing the pound, either.
I think we need to send out a search party to find a national currency that's actually backed by something of value. Then we can revalue all the fiat currencies against that. Perhaps the Mongolian Tugrik would be a suitable surrogate. It isn't directly exchangeable for gold by government regulation, but it is backed by a large--and rapidly expanding--holding of gold in Mongolia's coffers.
So let's see a chart of the Bitcoin vs the Tugrik and the Dollar vs the Tugrik, and then we can calculate the correct graph for Bitcoin vs. Dollar.
Remember to always adjust with inflation though!
Ugh. Thanks for the Luddite view. Countries moved away from backing their currencies up with gold, silver, etc. after the Great Depression demonstrated what folly that is. But I guess since the generations who experienced the Great Depression as adults have almost completely died out by now, we can repeat history again.
https://www.history.com/news/how-did-the-gold-standard-contribute-to-the-great-depression
https://www.thebalance.com/what-is-the-history-of-the-gold-standard-3306136
Seeing as it's becoming the currency of choice for criminals, I'd like to see what Bitcoin would do if large countries simply refused to allow banks to touch it. If you couldn't conduct legitimate transactions with it, I have a feeling most people would choose to stick with their government-issued "fiat" currency rather than the equally-backed-by-nothing-but-electrons Bitcoin. Especially since Bitcoin doesn't have any armies to force people to use their currency like governments do.
Is bitcoin a money market account? You're just hoping it goes up, right?
Using the value of the dollar against bitcoin makes no sense, since it's bitcoin which is volatile and which will probably vary against all currencies. It's not used for legitimate international trade. Compare individual exchange rates or weighted indexes:
https://fred.stlouisfed.org/series/DTWEXBGS
There are other choices of index at FRED
You pretty clearly missed the point of the post.
As Marx put it, first as tragedy and then as farce. Glad to see that bitcoin has laready reached the farcial phase.
Methinks Bitcoin has taken residence in Kevin’s brain. How is the US dollar doing against the renminbi, or the pound, or euro, or yen, or loonie for that matter?
You, too, have missed the point of the post.
[Hacker group demands bitcoin ransom, which is promptly traced and recovered by authorities, who then plan to prosecute hackers.]
Kevin: "Crypto is great for ransomware!"
We'll see if that's replicable or was a one off. I suspect that getting the Colonial Pipeline payment (mostly) back involved the FBI having provided the ransomware ring with it messaging software, and reading all of the texts. It probably wasn't a coincidence that no longer being able to keep that a secret followed shortly after the recovery.