The real truth behind the huge bitcoin raise in value over last 36 hours.
Okey so we all saw yesterday's huge bitcoin jump. We were all excited, well we still are, but there is something that I noticed today in the morning when I was on a train.
I am polish and we have PLN currency. When I was riding in the train on a screen in the train it showed current USD/PLN exchange rate.
It was 3.6!
I was really shocked because over last couple of months the exchange rate was stable between 3.75 - 3.85. That is a huge swing in one day.
Then when I finally sat at my computer the truth revealed to me.
This is EUR/USD chart. You can notice huge jump around 9 am 20.07.
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And this is USD/PLN chart. Very noticable decline here.
So even though we are all happy that cryptos are on the raise now, let's not forget that we evaluate their value in comparison to american dollars - which is neither a stable currency so any swings we notice might be effect of BTC... or USD.
In this case graphs show us that probably the bigger impact had to do with overall USD decrease ( which we can assume when we compare it to other world's currencies ) then Bitcoin raise.
Just so you know: I am a big bitcoin, cryptocurrencies enthusiast and I'm only writing this post to share with you my knowledge. I myself have some BTC in my savings and I'm looking forward for it to grow as high as 100k$ :).
Let's just not forget that unfortunately we have nothing like stample denominator of "worth" and everything's price is only in comparison to other things. Maybe if we had such thing our lives would be much easier... but probably less exciting :P.
Thanks for reading! Upvote if you liked it.
wow...thats great. learning crypto thing in depth
I'm glad you liked it
So true....even gold and silver are affected in the same way!
I didn't know that but it makes sense.
Yeah it's neat actually. The value of all commodities are pegged to the U.S. dollar. If you see the value of the cryptos , gold, silver etc go up, it really means that the value of the dollar has gone down. So even though the price is higher, silver etc still retains the same value. For example, an ounce of gold in 1930 has the same value as an ounce of gold today....the price difference from 1930 to now, is due to the fact that the dollar has lost 97% of its value since 1913 due to inflation. This brings up another interesting point....silver is trading around $16. Based on what I have just told you the inflationary value of silver means that it should be worth $1000 dollars today. So why is it only $16? The U.S. Govt has been suppressing the price for the last 50 years, because gold and silver are an indicator of economic health. If they let gold sell at it's true value of $6000 an ounce, there would be economic panic and the economy would collapse. So all the big banks in the world, along with their Govt's keep the price artificially low. My advise is to buy physical silver before the govt's lose control (another interesting conversation) and the prices go way up. Spend some time on you tube listening to Bix Weir, Clif High and Bo Polny.....you will find this discussion fascinating!! And you could make a lot of money if silver goes from $16 to $1000/ounce...............
Perhaps someday, all fiat currency will be shown as fluctuating prices in relation to bitcoin instead : )
let's all hope so.
Good point, its all compared to fake fiat money so you always have to remember that!
This is so obvious once you point it out that I feel silly.
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