In times of uncertainty❓will we have a "Bitcoin Milkshake"🥤?
Introduction
The objective of this study is to compare the appreciation of the world's main currencies, with Bitcoin as its main focus.
For this, 34 currencies were selected, 31 of which were fiat currencies, 2 metals (gold and silver, which were previously used as currency and store of value), and Bitcoin.
The selection was made based on the trading volume and representation of each currency on the world stage.
The dollar was taken as the unit of measurement for comparison purposes.
To compare the dollar itself against other currencies, the DXY index (Dollar Index), the WCU (World Currency Unit) and the XDR (Special Drawing Rights) were used.
The DXY is an index that represents the strength of the dollar against a basket of currencies, with the weight of each currency being calculated based on bilateral trade with the USA. The currencies that make up the index are: Euro (EUR), Japanese yen (JPY), Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF).
The WCU is a basket of currencies representing the 20 largest economies in the world, while the XDR is a basket of currencies representing the 5 largest economies in the world. Both baskets are calculated by the IMF (International Monetary Fund).
WCU is made up of the following currencies: USD, EUR, JPY, GBP, CAD, AUD, MXN, KRW, CHF, CNY, BRL, RUB, INR, TRY, ZAR, HKD, SGD, SEK, NZD and SAR.
The SDR is not a currency, but its value is based on a basket of five currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
Context
The financial market is constantly influenced by economic, political and social factors.
As the world goes through periods of uncertainty, investors are looking for assets that can protect their capital and guarantee solid returns.
There is a phenomenon known as the "Milkshake Dollar Effect", which refers to the tendency for the US Dollar to appreciate in relation to other currencies in periods of liquidity crisis.
The graph shows that in this period YTD (Year to Date) Bitcoin was the currency that appreciated the most in relation to the dollar.
Despite this, the scenario we are going through is unprecedented, and there is no way to predict what will happen.
What we can do is analyze what happened in the past and try to draw some conclusions.
Bitcoin was created in 2009, and since then it has been a very volatile currency.
In 2017, Bitcoin appreciated by 1,318% against the dollar, and in 2018, it depreciated by -73.5%.
But aside from the price fluctuation part, Bitcoin's biggest advantage is that it is not controlled by any government or financial institution, and is therefore resistant to inflation and price manipulation imposed by politicians.
Try making a money transfer to another country using the SWIFT system without paying absurd fees and without bureaucracy, and you will understand what I'm talking about.
But now, in this geopolitically delicate period full of uncertainty, will we have a "Bitcoin Milkshake"🥤 effect?
Currencies
The following currency pairs (and some indices) have been inserted into the chart:
1. BTCUSD
- Name: Bitcoin
- Country: ?
2. GOLD (XAUUSD)
- Name: Gold
- Country: Various
3. SILVER (XAGUSD)
- Name: Silver
- Country: Various
4. DXY (index)
- Name: Dollar Index
- Country: FED (Federal Reserve) - United States
5. USDWCU
- Name: US Dollar vs World Currency Unit
- Country: WOCU - United Kingdom
6. USDXDR
- Name: US Dollar vs XDR
- Country: IMF (International Monetary Fund) - United States
7. EURUSD
- Name: Euro
- Country/region: Eurozone
8. GBPUSD
- Name: British Pound
- Country: United Kingdom
9. CHFUSD
- Name: Swiss Franc
- Country: Switzerland
10. JPYUSD
- Name: Japanese Yen
- Country: Japan
11. SEKUSD
- Name: Swedish Krona
- Country: Sweden
12. CADUSD
- Name: Canadian Dollar
- Country: Canada
13. NOKUSD
- Name: Norwegian Krone
- Country: Norway
14. PLNUSD
- Name: Polish Zloty
- Country: Poland
15. KRWUSD
- Name: South Korean Won
- Country: South Korea
16. NZDUSD
- Name: New Zealand Dollar
- Country: New Zealand
17. SGDUSD
- Name: Singapore Dollar
- Country: Singapore
18. TWDUSD
- Name: Taiwan Dollar
- Country: Taiwan
19. AUDUSD
- Name: Australian Dollar
- Country: Australia
20. INRUSD
- Name: Indian Rupee
- Country: India
21. CNHUSD
- Name: Chinese Renminbi
- Country: China
22. CNYUSD
- Name: Chinese Yuan
- Country: China
23. HKDUSD
- Name: Hong Kong Dollar
- Country: Hong Kong
24. MYRUSD
- Name: Malaysian Ringgit
- Country: Malaysia
25. ARSUSD
- Name: Argentinian Peso
- Country: Argentina
26. SARUSD
- Name: Saudi Riyal
- Country: Saudi Arabia
27. ILSUSD
- Name: Israeli Shekel
- Country: Israel
28. IDRUSD
- Name: Indonesian Rupiah
- Country: Indonesia
29. TRYUSD
- Name: Turkish Lira
- Country: Turkey
30. ZARUSD
- Name: South African Rand
- Country: South Africa
31. BRLUSD
- Name: Brazilian Real
- Country: Brazil
32. CLPUSD
- Name: Chilean Peso
- Country: Chile
33. UYUUSD
- Name: Uruguayan Peso
- Country: Uruguay
34. MXNUSD
- Name: Mexican Peso
- Country: Mexico
35. COPUSD
- Name: Colombian Peso
- Country: Colombia
36. RUBUSD
- Name: Russian Ruble
- Country: Russia
The objective of this study is to compare the appreciation of the world's main currencies, with Bitcoin as its main focus.
For this, 34 currencies were selected, 31 of which were fiat currencies, 2 metals (gold and silver, which were previously used as currency and store of value), and Bitcoin.
The selection was made based on the trading volume and representation of each currency on the world stage.
The dollar was taken as the unit of measurement for comparison purposes.
To compare the dollar itself against other currencies, the DXY index (Dollar Index), the WCU (World Currency Unit) and the XDR (Special Drawing Rights) were used.
The DXY is an index that represents the strength of the dollar against a basket of currencies, with the weight of each currency being calculated based on bilateral trade with the USA. The currencies that make up the index are: Euro (EUR), Japanese yen (JPY), Pound sterling (GBP), Canadian dollar (CAD), Swedish krona (SEK) and Swiss franc (CHF).
The WCU is a basket of currencies representing the 20 largest economies in the world, while the XDR is a basket of currencies representing the 5 largest economies in the world. Both baskets are calculated by the IMF (International Monetary Fund).
WCU is made up of the following currencies: USD, EUR, JPY, GBP, CAD, AUD, MXN, KRW, CHF, CNY, BRL, RUB, INR, TRY, ZAR, HKD, SGD, SEK, NZD and SAR.
The SDR is not a currency, but its value is based on a basket of five currencies: the US dollar, the euro, the Chinese renminbi, the Japanese yen, and the British pound sterling.
Context
The financial market is constantly influenced by economic, political and social factors.
As the world goes through periods of uncertainty, investors are looking for assets that can protect their capital and guarantee solid returns.
There is a phenomenon known as the "Milkshake Dollar Effect", which refers to the tendency for the US Dollar to appreciate in relation to other currencies in periods of liquidity crisis.
The graph shows that in this period YTD (Year to Date) Bitcoin was the currency that appreciated the most in relation to the dollar.
Despite this, the scenario we are going through is unprecedented, and there is no way to predict what will happen.
What we can do is analyze what happened in the past and try to draw some conclusions.
Bitcoin was created in 2009, and since then it has been a very volatile currency.
In 2017, Bitcoin appreciated by 1,318% against the dollar, and in 2018, it depreciated by -73.5%.
But aside from the price fluctuation part, Bitcoin's biggest advantage is that it is not controlled by any government or financial institution, and is therefore resistant to inflation and price manipulation imposed by politicians.
Try making a money transfer to another country using the SWIFT system without paying absurd fees and without bureaucracy, and you will understand what I'm talking about.
But now, in this geopolitically delicate period full of uncertainty, will we have a "Bitcoin Milkshake"🥤 effect?
Currencies
The following currency pairs (and some indices) have been inserted into the chart:
1. BTCUSD
- Name: Bitcoin
- Country: ?
2. GOLD (XAUUSD)
- Name: Gold
- Country: Various
3. SILVER (XAGUSD)
- Name: Silver
- Country: Various
4. DXY (index)
- Name: Dollar Index
- Country: FED (Federal Reserve) - United States
5. USDWCU
- Name: US Dollar vs World Currency Unit
- Country: WOCU - United Kingdom
6. USDXDR
- Name: US Dollar vs XDR
- Country: IMF (International Monetary Fund) - United States
7. EURUSD
- Name: Euro
- Country/region: Eurozone
8. GBPUSD
- Name: British Pound
- Country: United Kingdom
9. CHFUSD
- Name: Swiss Franc
- Country: Switzerland
10. JPYUSD
- Name: Japanese Yen
- Country: Japan
11. SEKUSD
- Name: Swedish Krona
- Country: Sweden
12. CADUSD
- Name: Canadian Dollar
- Country: Canada
13. NOKUSD
- Name: Norwegian Krone
- Country: Norway
14. PLNUSD
- Name: Polish Zloty
- Country: Poland
15. KRWUSD
- Name: South Korean Won
- Country: South Korea
16. NZDUSD
- Name: New Zealand Dollar
- Country: New Zealand
17. SGDUSD
- Name: Singapore Dollar
- Country: Singapore
18. TWDUSD
- Name: Taiwan Dollar
- Country: Taiwan
19. AUDUSD
- Name: Australian Dollar
- Country: Australia
20. INRUSD
- Name: Indian Rupee
- Country: India
21. CNHUSD
- Name: Chinese Renminbi
- Country: China
22. CNYUSD
- Name: Chinese Yuan
- Country: China
23. HKDUSD
- Name: Hong Kong Dollar
- Country: Hong Kong
24. MYRUSD
- Name: Malaysian Ringgit
- Country: Malaysia
25. ARSUSD
- Name: Argentinian Peso
- Country: Argentina
26. SARUSD
- Name: Saudi Riyal
- Country: Saudi Arabia
27. ILSUSD
- Name: Israeli Shekel
- Country: Israel
28. IDRUSD
- Name: Indonesian Rupiah
- Country: Indonesia
29. TRYUSD
- Name: Turkish Lira
- Country: Turkey
30. ZARUSD
- Name: South African Rand
- Country: South Africa
31. BRLUSD
- Name: Brazilian Real
- Country: Brazil
32. CLPUSD
- Name: Chilean Peso
- Country: Chile
33. UYUUSD
- Name: Uruguayan Peso
- Country: Uruguay
34. MXNUSD
- Name: Mexican Peso
- Country: Mexico
35. COPUSD
- Name: Colombian Peso
- Country: Colombia
36. RUBUSD
- Name: Russian Ruble
- Country: Russia
To contribute to my work:
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⚡Bitcoin Lightning: forwardocean64@walletofsatoshi.com
🟠Bitcoin: bc1qv0j28wjsg6l8fdkphkmgfz4f55xpph893q0pdh
🔵PayPal: paypal.com/donate/?hosted_button_id=D9KRKY5HMSL9S
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