What does USD mean in Crypto World? Is BITFINEX Heaven or Hell?
Updated
Why do Crypto World still rely on USD as a value measurement?
1 Bitcoin == 1 Bitcoin is what we are looking forward, isn't it?
As human being, members of the society, we need to pay rent, food, all kinds of products and services and love, which are essential to make a living. However, Bitcoin and Crypto are not accepted by the traditional society for universal payment yet.
That is why, FIAT (USD) is still the rule to measure Bitcoin's value. You may not like it, the reality.
There are two popular methods to measure USD value in Crypto Exchanges: "USD" or "Stable Coin backed by USD".
Many exchanges use "BTCUSD", or "XBTUSD" for their Bitcoin - USD pairs, however, do those "USD" really equal to a US Dollar? Why do the price of Bitcoin value measured by "USD" differ from each other so much? The market is smarter than any algorithm.
The inflation of Bitcoin price based on "USD" normally means:
Hidden Cost: Much longer time and endless efforts to withdraw your "USD" balance to your bank account. (You don't even need to try - probably you will see many negative complains on Reddit) Or else, all transactions of Bitcoin -> USD will move to this exchange for the "highest" price, which is not the case.
As to "Stablecoin backed by USD", if a Stablecoin has credit problem, esp. the possible abuse of credit. The price of Bitcoin - Stablecoin of that exchange should be avoided being used for Technical Analysis, because the rule itself is wrong.
What a mess. BITFINEX could have been a perfect solution, if a Thether (USDT) were backed by a real USD. Many other exchanges provide only Stop order, which causes long wick. Do the exchanges benefit the long wicks ? I have no idea, really.
Where on earth is the "Dream Exchange" for Bitcoin and Crypto? Leave your comment, Buddy. PM me for Free Trial of "9 Seasons Rainbow MTF Indicator".
1 Bitcoin == 1 Bitcoin is what we are looking forward, isn't it?
As human being, members of the society, we need to pay rent, food, all kinds of products and services and love, which are essential to make a living. However, Bitcoin and Crypto are not accepted by the traditional society for universal payment yet.
That is why, FIAT (USD) is still the rule to measure Bitcoin's value. You may not like it, the reality.
There are two popular methods to measure USD value in Crypto Exchanges: "USD" or "Stable Coin backed by USD".
Many exchanges use "BTCUSD", or "XBTUSD" for their Bitcoin - USD pairs, however, do those "USD" really equal to a US Dollar? Why do the price of Bitcoin value measured by "USD" differ from each other so much? The market is smarter than any algorithm.
The inflation of Bitcoin price based on "USD" normally means:
Hidden Cost: Much longer time and endless efforts to withdraw your "USD" balance to your bank account. (You don't even need to try - probably you will see many negative complains on Reddit) Or else, all transactions of Bitcoin -> USD will move to this exchange for the "highest" price, which is not the case.
As to "Stablecoin backed by USD", if a Stablecoin has credit problem, esp. the possible abuse of credit. The price of Bitcoin - Stablecoin of that exchange should be avoided being used for Technical Analysis, because the rule itself is wrong.
What a mess. BITFINEX could have been a perfect solution, if a Thether (USDT) were backed by a real USD. Many other exchanges provide only Stop order, which causes long wick. Do the exchanges benefit the long wicks ? I have no idea, really.
Where on earth is the "Dream Exchange" for Bitcoin and Crypto? Leave your comment, Buddy. PM me for Free Trial of "9 Seasons Rainbow MTF Indicator".
Note
DISCLAIMER This is only a personal opinion and does NOT serve as investing NOR trading advice.
Please make their own decisions, carefully assess risks and be responsible for your own investing and trading activities.
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A Trading Indicator Artisan and JAVA Programmer, dedicated to enhancing traders' productivity.
A Trading Indicator Artisan and JAVA Programmer, dedicated to enhancing traders' productivity.
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