Depreciation of the dollar may harm your emergency funds, before its too late buy the bitcoin or any other digital currency

Sajjad Hussain
Nov 12 · 2 min read
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Since 2020, the U.S. dollar index has experienced a turbulent operation from a sharp drop to a soaring, and then falling again. With the development of the new crown epidemic and the US general election, all walks of life are paying more and more attention to the US dollar index. As for the mid-to-long-term trend of the US dollar, market views are roughly divided into two schools. The pessimistic view is that the U.S. dollar may have a substantial depreciation in the near future, and some people even judge that the U.S. dollar index will plummet by 35% in 2021.

The USDT, as a stable currency linked to the US dollar, is naturally also affected. However, due to the recent upturn in the digital currency market, the exchange rate is still relatively small.

So with the depreciation of the US dollar, how to deal with US dollar assets measured by USDT?

Entering Bitcoin may be a good idea. The downward trend in the US dollar is becoming the main factor in the current rise in asset prices. However, for some other digital currencies, the downward trend in the US dollar has led to a surge, such as Bitcoin, which has recently exceeded the $15500 mark. , It has risen by about 55% compared to a month ago, and because USDT is in the downward range, BTC has a lot of room for growth.

Of course, choosing to use small gains and buying virtual currency contracts is also a good way to hedge risks. Digital contracts are mainly used to leverage a small amount of digital currency to leverage a large number of digital currency allocations, thereby magnifying multiples through leverage. This benefit lies in the profitability of real transactions It is exactly the same as the loss figure, the only difference is the difference in the amount of money you invested.

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