Can Bitcoin benefit from the devaluation of the dollar?

Bitcoin is currently trading below 50 thousand dollars, reaching nearly 49,100 dollars, after declining this day by about 3%, but despite that, the price is still good compared to the confusion that is happening in the world, especially the economic decisions that I read about and I will talk about in this post.

Before I start talking about the economic decisions that affect the world, but there are many crises currently afflicting the world, which in turn affect the economy directly, including the new Corona mutator, which has become a threat targeting not only the population, but also many sponsoring companies and institutions that fear closure and quarantine Sponsorship contracts and advertisements worth billions.

But if we look at the economic side, we find that there is, for example, a collapse in the Turkish lira and a high rate of inflation in many countries, which led to a decrease in investments in the current period, and an increase in the rate of money printing, which in turn lost confidence among many investors in paper currencies.

Therefore, the best solution in the current period is to go to Bitcoin. It is not a requirement that your money increase and that you earn more, as the important thing in the current period is to keep the value of your capital away from inflation accounts because of printing more money and increasing the interest rate, which I will talk about in the paragraph coming.

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Bitcoin and Dollar

The Federal Reserve announced that the value of the interest will not be touched, which made the price of Bitcoin rise slightly above 50 thousand dollars, but despite that, the Bitcoin returned to the decline again, as verbal decisions do not have the same impact as actions.

But despite this, some may wonder what is the relationship of an increase in the interest rate and an increase in money printing to the price of bitcoin, in fact, my dear, the increase in money printing makes bitcoin rise, not to actually increase the value of bitcoin, but to decrease the value of the dollar.

Here, from an economic point of view, we find the importance of Bitcoin as a fixed asset like gold. Therefore, the rise of Bitcoin is not always due to its scarcity and increase in value. A 10% decrease in the value of the dollar may lead to a rise in Bitcoin by the same percentage, and if this is measured on a fixed asset, we find that the price of Bitcoin is stable despite this rise.

It seems that many economists make the value of the bitcoin, which to say the least is available at all times, and there is no holiday or downtime for trading, and you will not be deceived, dear trader or investor, as we have a fixed number of bitcoins and no more will be printed.

As I mentioned above, it is not currently important to profit, but to preserve the value of your capital from declining and protect it from inflation, which is increasing frighteningly year after year.

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