The US Dollar is experiencing the biggest annual decline since 2003, and the dollar is expected to end 2017 with a three-month low against other major currencies such as the Chinese Yuan and Japanese Yen.
Separating Government and Money Affairs
While the situation may seem rather unsavory for the dollar, Bitcoin, the largest digital currency with a market cap of $220 billion, saw a 1.234 percent growth in year-on-year value in other currencies such as Ripple, Litecoin and Dash.
Some analysts, such as Chris Gaffney, the head of EverBank’s World Markets, told Reuters that the dollar value will continue to decline throughout 2018. and they said there is no sign of recovery in the short term:
“Dollar will face more headwinds in 2018. The Fed won’t do the throttle job alone.”
Exante Data CEO Jens Nordvig told CNBC that it’s normal for many analysts to see improvement on the horizon after such a massive loss in value. This time, he said that many analysts did not think very positively about the US Dollar.
Referring to the huge growth in the global economy and important factors such as China, Nordvig made the following comment:
“There is a negative impact on the dollar. We have thoughts that this is unusual given that interest rates are going to rise quite rapidly.. It became very strong before January, and the fact that global growth is very strong is also a factor.”
Some longtime crypto investors, some researchers believe that the emergence of cryptocurrencies as a new asset class is a factor in the devaluation of government currencies around the world. They believe it had an effect on the decline he experienced.. Because cryptocurrencies separate the state and money affairs.
Governments have had absolute sovereignty over the monetary system for decades.. Especially when it comes to the state’s own money, the control and dominance of governments increases because they can control the supply of that money.
In November, ShapeShift CEO Erik Voorhees experienced growth in Bitcoin’s market value, user base and user mobility. He attributed his survival to Bitcoin as a decentralized currency and store of value, providing an alternative to the state-run economic system.. Voorhees:
Why does Bitcoin keep growing? Because it’s time to separate money and state.
— Erik Voorhees (@ErikVoorhees) November 28, 2017
“Bitcoin Why does it keep growing? Because now is the time to separate the government and money.”
To add some criticism to the above statement, Voorhees also emphasized that the short-term price bubbles in the Bitcoin and cryptocurrency markets are caused by greed.. However, Voorhees stated that the long-term price increases are driven by the demand for a state-independent economic system.. Voorhees:
“Short-term price bubbles are all speculation, I agree. But the long-term increase in value and price is driven by the core benefit of the non-state economy.”
Most Important Chart
Earlier this month, Zerohedge released the “Most Important Chart in the World” published a chart with the name. This chart shows the depreciation of the US Treasury since 1987.. Except for 2014, Bitcoin has been growing continuously since its inception, while the US Treasury has been in decline for more than 30 years.
As a result, analysts have begun to review long-term bubbles in the traditional economic sector.. Analysts are also asking the question of how right it is to describe a nascent asset like Bitcoin as a bubble, when traditional assets that have been on the decline for decades and perhaps these are the real bubbles.
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