A Look At Bitcoin Against Various Fiat Currencies
It’s All Relative
Depending on where you are in the world, Bitcoin could already be experiencing new all-time highs in relation to your national currency. Inflation, compounded by dollar weakness, has seen certain jurisdictions collapse under pressure. For anyone who has been conducting their own research as opposed to simply lapping up the narratives being pushed regarding de-dollarization, you will most likely be aware of something rather significant. Many of the BRICS currencies are at the same levels against the dollar as they were a year ago or lower. The South African rand has lost significant value against the dollar during this period.
However, I am not going to get into that now. What we are, however, going to be looking at is national fiat currencies and their performance against BTC. One of the most interesting is the Turkish lira. The lira has lost significant value against the dollar and, subsequently, Bitcoin. The devaluation of the Lira has consequently caused the price of BTC to skyrocket against the Turkish lira. BTC is on the brink of printing new highs against the lira.
The screenshot above clearly depicts Bitcoin’s ascent against the lira. This just goes to show how important saving in BTC is. Remember, saving or investing is a long-term endeavor. Weekly and monthly movements are noise, especially in times of uncertainty. Another national fiat currency that is losing ground against BTC is the Russian ruble. Taking a look at the screenshot below, it is evident that BTC is approaching all-time high levels against the ruble. It’s not as impressive as the lira against BTC, but it’s moving in the right direction.
Other more well-known fiat currencies such as the British Pound, New Zealand dollar, Mexican peso, Brazilian real, and others are very much in line with the USD in terms of the “distance” from all-time high levels. Others, such as the Argentine peso and Venezuelan bolívar, are losing tremendous ground against BTC. However, I was unable to find any charts with any significant history. So, they are not worth pulling up, as in most cases are simply a couple of green bullish monthly candles.
Bitcoin against the South African rand is another currency that is giving up a little more against Bitcoin when measured against the general performance of the abovementioned basket that appears to be keeping very much in step with the Dollar. Essentially, any currency that is experiencing a more significant loss against Bitcoin, in percentage terms, when measured against the Bitcoin dollar chart in percentage terms is simply a weakness against the dollar. These currencies are collapsing against the dollar, which is causing the need for more of that particular national currency to purchase Bitcoin, a dollar-denominated asset.
The DXY is still ranging, which reveals that it’s not a case of significant dollar strength, but significant weakness in relation to these national currencies. Anyone living in these countries would have done well by beginning to shift into BTC and even altcoins during the last quarter of 2022.
Timing is everything in financial markets. That’s probably why you are always told to never try and time the market. I disagree. I discouraged accumulation during 2022. However, in September, I signaled the beginning of what I interpreted to be the beginning of a new accumulation phase. Buying at $25K or $22K might be okay, but those who waited for September got to buy at $16K and $18K. That might not look meaningful to some but do the maths when BTC eventually hits $150K or $200K. It becomes a lot more meaningful.
Final Thoughts
Bitcoin is in Chapter 1 of a new bullish phase. As this phase ages, all national currencies will begin to weaken extensively against Bitcoin. This will eventually also be the case regarding altcoins, which are currently in a great zone for accumulation. Those looking to save with a two-year horizon are currently well-suited to a Bitcoin “savings plan”. This is simply my own opinion and not financial advice. Have a great week, and see you next time!
Disclaimer
First of all, I am not a financial advisor. All information provided on this website is strictly my own opinion and not financial advice. I do make use of affiliate links. Purchasing or interacting with any third-party company could result in me receiving a commission. In some instances, utilizing an affiliate link can also result in a bonus or discount.
This article was first published on Sapphire Crypto.
