Things are not looking that good for the US dollar over the past few months. The dollar has recorded the largest annual decline in value so far since 2003 and is now forecasted to end this year in a three-month low against the other currencies being in their normal states (Chinese yuan, Japanese yen and the Euro).
Meanwhile, Bitcoin is recording its most successful year so far. As the most valuable digital currency nowadays with a $227 billion market valuation, the cryptocurrency is ending 2017 with a massive increase of 1,341% in value, standing next to some of the most profitable digital currencies on the market such as Ripple, Litecoin, Ethereum and Dash.
According to many analysts, the state of the US dollar would likely further decline throughout 2018 which means that there will be little to no signs of any short-term recovery. In a situation like this, it would be normal to expect a recovery after a large loss of value – however, there is a massive negative bias on the US dollar right now.
For many decades, the dollar has been controlled by governments. And while that is the case today too, there are many reasons to be skeptical about the future – especially with the fiat currency systems growing and becoming ones to easily manipulate the supply of circulating money.
The most interesting fact, though, is a chart that shows the decline in the value of the US Treasury since 1987. In it, the signs of the US dollar being at its weakest currently can be clearly seen. While Bitcoin has been gaining throughout its eight year history, this chart doesn’t show the same for the US dollar.
Presently, analysts are trying to evaluate the long-term bubbles in the finance industry and whether the emerging assets such as Bitcoin and other altcoins can be described as bubbles.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post