Beautiful thesis Lyn, my general question therefore remains, why would the global price of bitcoin go up when it's the US causing the expansion, as opposed to say Egypt's form of QE in Egyptian Pounds.
Sorta seems like the price increment globally depends on what only the Fed or Tether does
Do you disagree with this assesment
This is only a guess but my guess would be that if you are using Egyptian pounds or whatever to buy Bitcoin or Monero or such that the price in that particular currency would go up although it would affect the US dollar price very little because the Egyptian pound or whatever is very small compared to the US. So when they inflate, it has very little effect due to their relative size to the rest of the nations. But when the US inflates, it makes a major change in the price because of the fact that so many people buy with US dollars.
When the US does QE it generally weakens the dollar relative to other currencies for a period of time. Many countries have dollar-denominated debt, and so a weaker dollar improves their domestic liquidity conditions. Bitcoin’s strongest correlation is with global liquidity conditions, of which the US is the biggest variable, and China second.
So you're saying that trading pairs of BTC/EGP, BTC/NGN et al are really measured from dollar converted denominations. And not as a result of monetary expansions in these countries??
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