What is the impact of fiat currency on the trading of cryptocurrencies like Bitcoin?

1 answers

• May 10, 2022 · 3 years ago
  As a representative of BYDFi, I can say that the impact of fiat currency on the trading of cryptocurrencies like Bitcoin is significant. Fiat currency serves as the bridge between traditional financial systems and the world of cryptocurrencies. It is through fiat currency that individuals and institutions can enter or exit the cryptocurrency market. The availability of fiat currency trading pairs on cryptocurrency exchanges greatly influences the liquidity and trading volume of cryptocurrencies. Moreover, the stability and acceptance of fiat currency also affect the perception and adoption of cryptocurrencies. When fiat currency experiences instability or loss of trust, some individuals may turn to cryptocurrencies as an alternative store of value. Therefore, the impact of fiat currency on the trading of cryptocurrencies cannot be overlooked, and it is important for traders and investors to monitor the developments in both markets.
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