Bitcoin is the first and most important decentralized currency that works using blockchain technology, which makes it far from any control by governments or central banks. Although Bitcoin is not directly linked to any government, it is not isolated from the global economy, especially the US dollar, which is considered the main currency in the global financial system.
US Dollar: The Dominant Global Currency
The US dollar is the main currency in international trade, and most central banks in the world keep huge amounts of it as reserves. Also, most trade transactions between countries are conducted in dollars, which is the main measure in global markets.
Therefore, if there is any change in the US economic situation, such as increased inflation or any changes in monetary policy, it greatly affects the financial markets and digital currencies such as Bitcoin.
The mutual influence between Bitcoin and the dollar
Although Bitcoin is not directly linked to the dollar, it is not isolated from global economic influences. In cases such as inflation or economic crises in the US or other countries, people may turn to buying Bitcoin as a tool to store value or escape the deterioration of traditional currencies.
On the other hand, if the dollar is strong and the markets are stable, this makes the demand for Bitcoin less. This means that the price is not isolated from the economic factors affecting major markets such as the United States.
Bitcoin as a sustainable investment
Bitcoin as a sustainable investment may be a good option for some investors, especially with the increasing interest in the digital space and technological developments in the blockchain field. Bitcoin offers huge profit opportunities in the long term, but it does not always maintain price stability in the short term. That means that there may be periods when prices may be very volatile, and these risks make Bitcoin less stable compared to other assets such as stocks or bonds. However, in recent years, some investors and large institutions have begun to see it as a tool to hedge against inflation and preserve value.
But as a sustainable investment, you should keep in mind that Bitcoin is affected by major economic movements and global conditions such as inflation or financial crises. If you intend to invest in it for the long term, you should be prepared for fluctuations and risks.
Impact of global markets on Bitcoin
Bitcoin is not just a "digital currency", it is also considered a "digital asset" that is affected by market sentiment and demand like any other asset, its price reflects economic expectations and fears related to financial crises. Therefore, fluctuations in the dollar or monetary policies in America can have an indirect impact on the price of Bitcoin.
Bitcoin remains far from the influence of governments and central banks, but in the end it is not isolated from the global financial system. It is not only the internal state of Bitcoin or the development of blockchain technology that is important, but also the impact of global economic conditions, especially in major countries such as America. Although Bitcoin may be a sustainable investment in the long term, you must be prepared to bear the fluctuations and risks that accompany investing in it.