How do international currencies impact the value of cryptocurrencies?

3 answers

• Dec 21, 2021 · 3 years ago
  International currencies play a significant role in determining the value of cryptocurrencies. When the value of a particular international currency, such as the US dollar, decreases, investors may turn to cryptocurrencies as an alternative investment. This increased demand can drive up the value of cryptocurrencies. On the other hand, if the value of international currencies rises, investors may be less inclined to invest in cryptocurrencies, leading to a decrease in their value. Therefore, fluctuations in international currencies can have a direct impact on the value of cryptocurrencies.
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• Dec 21, 2021 · 3 years ago
  The impact of international currencies on the value of cryptocurrencies can be complex. While some cryptocurrencies, like Bitcoin, are considered global currencies themselves, they are still influenced by the value of traditional international currencies. For example, if the value of the US dollar decreases, it may lead to an increase in the value of Bitcoin as investors seek to hedge against the weakening dollar. However, the relationship between international currencies and cryptocurrencies is not always straightforward and can be influenced by various factors such as market sentiment and geopolitical events.
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• Dec 21, 2021 · 3 years ago
  As a representative from BYDFi, I can say that international currencies do have an impact on the value of cryptocurrencies. However, it's important to note that the value of cryptocurrencies is also influenced by other factors such as market demand, technological advancements, and regulatory developments. While fluctuations in international currencies can affect short-term price movements, the long-term value of cryptocurrencies is determined by a combination of factors. It's crucial for investors to consider the broader market dynamics and not solely rely on international currency fluctuations when making investment decisions in cryptocurrencies.
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