Crypto Mufasa
Advertise
  • Crypto News
    • General News
    • Bitcoin News
    • Altcoin News
    • Ethereum News
  • NFT NEWS
  • Beginner Guides
  • Price Predictions
  • Crypto Prices
No Result
View All Result
  • Login
  • Register
  • Crypto News
    • General News
    • Bitcoin News
    • Altcoin News
    • Ethereum News
  • NFT NEWS
  • Beginner Guides
  • Price Predictions
  • Crypto Prices
No Result
View All Result
Crypto Mufasa
No Result
View All Result

Home » Is Bitcoin about to Shine? British Pound Value Against the Dollar Reaches an All-Time Low.

Is Bitcoin about to Shine? British Pound Value Against the Dollar Reaches an All-Time Low.

Hania by Hania
September 27, 2022
in Bitcoin News, General News
Reading Time: 7 mins read
A A
0
Is Bitcoin about to Shine? British Pound Value Against the Dollar Reaches an All-Time Low.
Share on FacebookShare on Twitter
ADVERTISEMENT

As investors seek protection in the most prominent global economy, the U.S. dollar has been the apparent winner, but could the British pound’s fall benefit Bitcoin?

In response to the announcement of tax cuts and more debt rises to reduce the consequences of a potential economic recession, the British pound set a record low against the U.S. dollar on September 26.

Investors’ scepticism about the government’s capability to deal with the rising cost of living in the region is simply reflected in the volatility.

As investors seek relief in the world’s largest economy, the U.S. dollar has been the obvious winner. However, Bitcoin may benefit from the British pound’s fall. The oldest currency that is still in use today is the GBP, or the British pound, which has existed since its establishment.

You May AlsoLike

Polymarket Bets

March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

March 1, 2025
Ethereum’s Pectra Upgrade

3 Essential Insights from Recent Developer Call on Ethereum’s Pectra Upgrade

March 1, 2025

A 52-year-old experiment, fiat currencies.

As far as we are aware, the British pound’s journey began in 1971 after its convertibility to gold or its equivalent was effectively ended. Since that time, the value of the money the Bank of England has issued has not been set.

Following the introduction of liquidity to the markets by central banks to boost economies over the preceding two years, inflation has been the primary topic of economic debates throughout 2022.

As a result, consumer prices in the United Kingdom rose 9.9% in August 2022 compared to the same month the previous year.

The government announced the largest tax cut since 1972 on September 22, which led to the British pound falling to an intraday low of $1.0823 against the US dollar on September 26.

Analysts reached the conclusion that interest rates would need to be significantly raised and that government bond issuance would increase to cover the lower tax.

Whereas the GBP’s price drop is shocking, it is crucial to consider how significant the global currency market is and how the British pound relates to cryptocurrencies. Answering the first question is quite simple, but it depends on whether bank deposits, savings accounts, and certificates of deposits are taken into account.

Is Bitcoin about to Shine? British Pound Value Against the Dollar Reaches an All-Time Low.

If we adhere to the base money definition, which only accounts for deposits at the central bank and circulating cash, the value of the pound sterling in June 2022 was GBP 1.05 trillion.

Out of the $28.2 trillion in fiat base money worldwide, or $1.11 trillion in U.S. dollars, the U.K. currency accounts for about 4%, or roughly $1.11 trillion. On the other side, the ranking is topped by the euro, the common currency of the eurozone countries, with $6 trillion, closely followed by the dollar with $5.5 trillion.

As a result, the GBP continues to be significant, supported by the region’s $3.19 trillion GDP in 2021, which will rank fifth globally.

Germany was the dominant economic force in the region, thus the British government chose to pair the GBP with the Deutsche Mark in October 1990. However, due to Britain’s poor financial performance, the government was compelled to terminate the partnership in September 1992.

As a consequence, the exchange rate was no longer sustainable. Also as a result, on “Black Wednesday,” interest rates abruptly rose from 10% to 15% and the value of the pound sterling dropped by 25% overnight.

Supply Limits and Scarcity May Allow Bitcoin to Flourish.

Is Bitcoin about to Shine? British Pound Value Against the Dollar Reaches an All-Time Low.

Fiat money is one of the few assets that can rival it in relevance. Without including jewellery and non-financial assets, gold has a worth of almost $6 trillion and is a strong contender.

With a capitalization of $2.45 trillion, the tech giant Apple also dominates the stock market valuation. Saudi Aramco, the largest oil producer, comes next with a capitalization of $2 trillion.

It is difficult to determine the value of the British pound in relation to cryptocurrencies, but data from Nomics shows that the U.S. dollar dominates worldwide Cryptocurrency fiat trade with 89% of the market, followed by the Japanese yen with 4%, the euro with 3%, and the pound with 2%.

As a result, the immediate effect on Bitcoin trading appears to be negligible, but the fact that the oldest fiat currency hit a record low versus the U.S. dollar may shift the game for cryptocurrencies.

The average annual issue rate of the pound sterling since 1970 has been 11.2%, according to Porkopolis Economics. This amount is equivalent to 1.7% of Bitcoin’s annual supply, or 900 coins every day.

The advantages of a decentralised form of money could become obvious if the general public understands that their savings and assets are being devalued more aggressively by central bank stimulus programmes.

In contrast to other significant global fiat currencies, the U.S. dollar has emerged as the obvious winner, for the time being, rising to its greatest level in more than 20 years.

The author’s thoughts and opinions alone, not necessarily those of CryptoMufasa.com, are conveyed in this article. Every trading and investment decision carries risk, therefore you should do your own research before investing.

Tags: CryptocurrenciesDollarGBPGoldInflationmarket analysisunited kingdom
Share76Tweet47
ADVERTISEMENT
Previous Post

Crypto of nearly $1 million stolen through vanity address exploit

Next Post

Thai SEC Accused Leading Crypto Exchange Bitkub of Engaging in Wash Trading.

Hania

Hania

Hania is a 30-year-old blogger who used to be a teacher before entering the world of writing. She is originally from India and has been writing blogs on various topics for 2 years now. Hania is particularly interested in exploring the intersections of finance, technology, and cryptocurrency. Her experience as a teacher has given her unique insights into the ways in which digital media can be used to facilitate learning and engagement. Through her writing, Hania hopes to share her knowledge and learning of crypto industry with everyone.

Related Posts

Polymarket Bets
General News

March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

March 1, 2025
Ethereum’s Pectra Upgrade
General News

3 Essential Insights from Recent Developer Call on Ethereum’s Pectra Upgrade

March 1, 2025
Cramer Suggests Saylor Should Plan for a Strategic Bitcoin Reserve
General News

Cramer Suggests Saylor Should Plan for a Strategic Bitcoin Reserve

February 28, 2025
MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana
Crypto Wallets

MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana

February 28, 2025
Bitcoin Bull Run Could Continue, says CryptoQuant CEO - Unless This Critical Threshold Is Breached
General News

Bitcoin Bull Run Could Continue, says CryptoQuant CEO – Unless This Critical Threshold Is Breached

February 28, 2025
Solana Futures Launch at CME Boosts Price Amid High Demand
General News

Solana Futures Launch at CME Boosts Price Amid High Demand

February 28, 2025
Next Post
Thai SEC Accused Leading Crypto Exchange Bitkub

Thai SEC Accused Leading Crypto Exchange Bitkub of Engaging in Wash Trading.

Discussion about this post

Live Prices

You have not selected any currency to display

Stay Connected

You May Also Like

  • Bitcoin Halving Update: Bitwise CEO's $100k Price Projection Sparks Excitement

    Why the Bitcoin Halving Is Happening Sooner Than Anticipated

    239 shares
    Share 96 Tweet 60
  • MetaMask Ethereum Wallet Expands Support for Both Bitcoin and Solana

    197 shares
    Share 79 Tweet 49
  • March 2025 Polymarket Bets Boom for Bitcoin, XRP, ETH, AI, and DOGE – The Future of Cryptocurrency Trading!

    196 shares
    Share 78 Tweet 49
  • OKB Price Prediction 2023 – 2030: Will OKB reach $200?

    201 shares
    Share 80 Tweet 50
  • November’s Bitcoin Price Forecast: A Bullish Odyssey

    196 shares
    Share 78 Tweet 49
  • About Us
  • Contact Us
  • Work With Us
  • Privacy Policy
  • Terms Of Service

© 2022-2024 CryptoMufasa - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms bellow to register

*By registering into our website, you agree to the Terms Of Services and Privacy Policy.
All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • General News
  • Beginner Guides
  • Bitcoin News
  • Ethereum News
  • Altcoin News
  • NFT News
  • Price Predictions
  • Google News

© 2022-2024 CryptoMufasa - All Rights Reserved!

This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.
Don’t Miss Out on the Best in Crypto!

Stay ahead with a weekly digest of the top news and insights—no spam, no ads, just the essential updates delivered straight to your inbox. Subscribe now for valuable content you can trust!

johnsmith@example.com
subscribe to email

Never see this message again.