A Strong Dollar: Good For Bitcoin


Jim Kimmelman recently posted at Seeking Alpha about Trump, The Dollar and Bitcoin.

At first thought, a stronger dollar is negative for Bitcoin; in reality, it is not. Bitcoin is a world currency, and people are turning to it when their governments devalue their home currencies. The largest driver of this is China. If the yuan devalues at a faster and faster rate, the Chinese will increase their use of Bitcoin. The Chinese are already using it to circumvent capital controls and move their wealth outside of China. Events like United Kingdom voting to leave the EU show the unstable nature of fiat currencies. Bitcoin has rallied this year - 88% versus USD, 99.5% versus CNY, and 126% versus GBP. So while domestic demand for Bitcoin may simmer, international demand would fill the void. This year's rally has been fueled by strong demand from China. Trump also wants to block remittances to Mexico. Family members in the United States could turn to Bitcoin to circumvent any regulations.

He further recommends to hold Bitcoins because it reduces the risks of an exchange hacking. Circle.com is a low-cost option to buy Bitcoin and is located in the United States. 

If you are skeptical and would like to try it before buying, this site gives away amounts of the alt-coin Compuceeds which you may turn into Bitcoin. You can get them for free and try sending coins to your own wallet to get a feel for it.