Bitcoin reaches a new historical record: King Dollar faces his worst year
While the financial world saw bitcoins and events to dance risky tango in the background of volatility, the decoration suddenly changed. BTC reached new historical heights and exceeded $ 125,000 this weekend, gold flirts with $ 4,000 on an ounce, the US dollar was free in the fall, recorded the worst year since 1973. Actions such as events such as action, such as action, such as action, such as that is an action means.
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- Bitcoin has reached historical heights exceeding $ 125,000, while gold almost reached $ 4,000 per ounce.
- The US dollar recorded its worst year since 1973 and has fallen by more than 10 %since the beginning of the year.
Dollar King’s Fall: Tragedy in 3 Acts
Understand SinkingYou have to go back to the source. In 1973 it was the beginning of the end forOld Bretton Woods System. ” Nixon shock Since 1971, the dollar’s belief in gold has ended, but the year 1973 was that when the final abandonment left the dollar floating according to economic wind.
Today we are witnessing and shockLess suddenly, but equally devastating. The US dollar, this time, does not flow out because of leaving gold, but because of “slow erosion of his value”.
Since the beginning of the year, the dollar has lost more than 10 % of its value. Skrtl, which is explained by the accumulation of bad news:
- tough inflation,
- A federal reserve system that reduces interest rates,
- and a public debt that swells in sight.
The balance sheet is final: since 2000 Greenback has lost near 40 % of their purchasing power. It is therefore not surprising to see how investors take off and are looking for refuge far from what looks more and more like a card.
Bitcoin and Gold: Reverending
In the face of this debacle, two active people pull their game and climb in front of the stage: Bitcoins and gold.
The first, as well as a rebellious and brilliant teenager, achieved a new historical summit by crossing $ 125,000carrying their market capitalization on $ 2.5 billion. A power that now places it in Top 10 of the world’s largest active.
The second, Sage of Finance, approached $ 4,000 on an ounce. Its total value, $ 26.3 billion, still crushes the value of bitcoins.
These two assets are perceived as shelterslife buoys in the ocean uncertainty. Gold, with his History of the centuryIt is a predecessor wall against inflation. On the other hand, Bitcoin version 2.0 of this promise is. Decentralized, censorship and inflation resistant, it is a perfect incarnation of anti-system assets.
What is fascinating and which has caused many ink to flow is unprecedented correlation between the action and these -called “refugees” assets. Historically, when the actions dropped, it increased and vice versa. Today, They move together. This does not mean that the risk disappeared far from him.
A great movement of currency
PUSH A combination of a dollar fall and Bitcoin and Gold are rising reflects a deep change in the perception of value.
Investors no longer see the dollar as an unshakable fortress, but as a currency that constantly loses its purchasing power.
So does the dollar lose its status of global reserves? The question arises. Greenback has lost 40 % of its purchasing power since 2000 and the phenomenon has accelerated. Investors will turn away from the dollar for stronger alternatives.
While the United States still faces the main economic challenges, the battle of currencies rages. And for now, the dollar is in poor condition, while bitcoins, gold and even money share the crown. Will the future write to bitcoins, gold or both? Only time will tell us.
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