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What do you mean by pegged?
Bitcoin is often valued in dollars but there is no connection anymore than there is between company shares, vintage baseball cards, gold or diamonds and dollars.
All currencies (pounds, dollars, yen etc) are suffering from mismanagement by their central banks and devaluing. Any correlation with Bitcoin is most likely inverse… as the dollar crashes Bitcoin rises.
Then if Bitcoin is not pegged to the Dollar, what then is it pegged on? What is backing it. The US dollar itself used to be backed by gold before it was discontinued. What commodity does Bitcoin rely on to have the value it has today.
My immature side says the dollar is about to get pegged by Bitcoin…..
😆.... Your immature side could be right. The world live in right now, as it is, anything can happen. Nothing is written on stone.
All things have prices because actors in (free) markets may bid and are willing to pay those prices to own the things.
Nothings pegged. Not even gold is inherently valuable. It's just shiny and scarce. If you're in a town full of very stupid gold-racists who value it at 1 dollar per ounce, then that's it's price. Until you reach another market.
Makes sense
Read this book:
https://saifedean.com/tbs
Thanks. Checking it out.
It's very good.
One day we will look back and wonder why we ever valued Bitcoin in dollars. It should be the other way around.
What then should Bitcoin have been valued in if not dollar?
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But the Bitcoin is pegged to the dollar. Doe is mean if the dollar is dieing the Bitcoin will die with it??