Bitcoin has recorded its largest monthly loss since June 2022, pushing it into a bear market as the euphoria over cryptocurrencies after Donald Trump’s election win faded.
The price of bitcoin fell by 17.5% in February, the biggest monthly drop since June 2022, and its eleventh worst month in the last decade, as risk-off sentiment gripped financial markets.
The world’s largest crypto asset ended February at about $84,252 (£67,010), having hit a three-month low of about $78,273 during trading on Friday.
Bitcoin has now dropped more than 20% below the record high of $109,071 set in mid-January, which puts it into a technical bear market.
The US dollar ultimately has power because that is what it takes to pay taxes in the US. You want to do business in the US? Uncle Sam gets his cut, and he only accepts greenbacks. Same with the EU, UK, China, and every other major currency. If you don’t give Uncle Sam his cut, you’ll go to jail or wake up to 110,000 tons of American “diplomacy” plus fleet escort sitting outside you main port.
Ultimately the economic power of a country is backed by the state’s power to defend it. That’s why the USD stands as the global reserve currency instead of something like the Lebanese Pound or the the Kiribati dollar.
Yes, that’s just extra reasons why the USD is more valuable/more dominant/used as a reserve currency.
The point was that saying Bitcoin doesn’t have actual value because it doesn’t have a military isn’t true. You can see the actual value on any exchange, just like every other currency. The value of a currency is related to its use in trade, even countries without a military have currencies with value.
The fact that the USD is more valuable or used as a reserve currency doesn’t mean that other currencies (including bitcoin) don’t have value.
Yeah! Like meme stocks or beanie babies.
People don’t even understand the value of an immutable digital object and how it never existed before bitcoin either. They can’t wrap their head around that having some inherent value even if small, and how that can transform the world, even if not bitcoin specifically
People recognize the value of digital objects only when they lose access to something like their e-mail or main social media account.