Long before bitcoin, there was the dollar. Today, although many years after the world accepts the so called ‘almighty dollar’ as the main financial currency, people are now looking at bitcoin as a much stronger economic asset, one that can turn the tide of wealth into one’s favor much quicker than the dollar can.
Today, the currency market is still garnering speed on the world stage with the crypto-currency bitcoin taking center stage. Investors in the money market are exchanging the dollar for bitcoin simply because they see it moving faster ahead in value.
Still, not only is the US dollar being watched by foreign exchange investors and experts, but the Euro and Yen as well. However, with the surge in all three local currencies over the years, bitcoin’s run has been phenomenal and is still showing stronger potential increases. This is causing some positive stir among investors. Therefore, the preference among some investors is the bitcoin market because it holds plenty more promises than the paper currencies market does. In addition, its value is steadily growing as proof of its stability.
The US dollar today
The US dollar is a currency that sometimes registers appreciation and other times depreciation. In other words, it moves with the type of economic climate the country is presently experiencing and the different currency fluctuations happening around the world in various countries. Take for example; just recently, the US dollar currency did not rise as expected after doing so well in previous times. Many experts feel that it was because of Friday’s report of Non-Farm Payrolls that seemed to have some impact on inflation that is being experienced in the country at the time.
Since the beginning of the year 2017, payrolls stood at 238k in January and fell to 235k in February. Wages had an increase of 0.2% although experts had predicted it would show a 0.3% increase coming from the previous month. Still, with figures standing as they are, the dollar did not show any significant change.
Just 10 hours ago, the dollar started its rise once again. According to speculators, the rise might be a result of the coming Federal Open Market Committee (FOMC) meeting that is due to be held soon. The increase seen so far is keeping in line with the benchmark US Treasury bond yields. Meanwhile, Britain’s pound sterling fell prone to the challenge of the US dollar yesterday and some people are expecting it to weaken further as traders look to take profits swipes off the top of trading in the wake of the UK’s unsettled future. Just two hours ago, The Express, which is a UK, based site reports that the pound surged ahead of the US dollar in wake of a rate rise in America.
Interest rates in the US are likely to start climbing again after the Federal Reserve meets and this rise should be enough to give the dollar a slight boost. Overall, depending on the economic climate happening, especially in Great Britain, the dollar will either rise or fall and this is why some investors are losing confidence in it.
Bitcoin came on the scene in 2009 because of the need to find an alternative to the economic ecosystem that was happening globally. Unlike the US dollar that fluctuates often in the wake of economic changes, the crypto-currency is steadily growing, even in the wake of economic turmoil. On March 10, it suffered a setback after the Securities and Exchange Commission (SEC) made an announcement by disapproving the ETF Coin owned by the Winklevoss twins and it dropped to nearly $960 but miraculously recovered quickly to reach stability at the price of $1,225, which surprised many analysts while making investors smile.
Today, the price of the digital currency bitcoin is standing at $1,257 after falling from $1,290 when the announcement was made. Analysts, investors and other key players are wondering how long the crypto-currency will remain resilient to the ETF ruling.
Why are people accepting bitcoin? Many people today are accepting bitcoin payment because of its decentralized benefits. Nowadays, to use the digital currency no trust is needed and sending a transaction is as easy as counting 1 2 3. Once the transaction is sent, it becomes automatically digitally signed and everything falls into place. In fact, it is much safer than dealing in cash.
Bitcoin offers fast service to the user, which is unlike banks that hold checks for a period of time before releasing funds to the owner. In addition, the service is relatively cheap and almost everyone can afford it.
However, one of the main reasons why so many people are taking bitcoin seriously is because it is out of the reach of central governments. While the central governments can order a takeover of some uninsured deposits, it cannot do so with bitcoin because of certain stringent rules that the digital currency operates under.
Other main reasons why bitcoin is a plus among the population are that it is not inflationary, has no charge-backs, it is private and the owner exercises sole ownership of it as well as it is a safe haven for everyone using it.
Since there are so many advantages to using bitcoin, more people are turning to it while still using the dollar as a secondary alternative to carry out daily, weekly or monthly transactions. With the digital service moving so fast ahead, in the near future world governments will be forced to consider it as their main source for carrying out transactions in their country.
Unless financial bodies implement rules to curb the growth of bitcoin, it will continue on its growth path. It seems it will become the most popular way of conducting transactions and central banks may have a serious time dealing with its popularity.