As Bitcoin is the currency of the internet, it is strictly connected with the US dollar, which is the most important currency used there. For some analysts that are familiar with Forex, but also with the Bitcoin, the evolution of the pair BTC/USD can easily be anticipated, excluding the weird period of April 2013, when the problems on the international financial markets brought the value of the Bitcoin at a value that was impossible to anticipate.
Whenever an important announcement is made, the value of the Bitcoin grows. For example, an important step in the life of this currency was November 2012, when WordPress announced that they accept payments in Bitcoins, when the pair BTC/USD practically doubled its value overnight.
Why is the parity BTC/USD so important
Even if the BTC can be converted in other currencies, the clearest indicator about the evolution of the Bitcoin remains the USD. Moreover, the currency benefited of an increased attention from the US government, especially because it can be used anonymously on the internet.
Even the European traders prefer the USD in their Bitcoin transactions, because it is more stable and volatile. This means that the orders on BTC/USD are executed fast, allowing traders to get the expected price for their currencies. At the beginnings of the bitcoin, the transactions were hassling, as people needed to send bank cheques and to wait for the currency to be converted as some rates that were not so great. BitStamp introduced the SEPA system of payments, which was beneficial for all the traders, but especially for USD transactions, and for European traders that wanted to trade on the BTC/USD pair.
Best websites to trade BTC for USD
This website offers calculators, converters and graphs allowing you to exchange bitcoins for dollars and dollars for bitcoins with the ease of a simple click. It also comes with some extra features, and if you subscribe for their newsletter, you will receive the latest news about the bitcoin market, allowing you to establish a trading strategy.
Bitstamp – buy and sell bitcoins
Besides the best rates and the fact that Bitstamp attracts more than 80% of the total number of transactions made with bitcoins, the website also offers safety. All the transactions are secured, and the client’s funds are stored in offline storages, such as the own servers of the website. There is a minimum amount of deposit of 15$, and you will also have to wait one or two days for your order to be executed, but the bulk transfers are made the same way. Moreover, Google Authenticator and the password generator make the website one of the sagest in the world. When it comes to US dollars vs. BTC transactions for European users, Bitstamp is the best place to be.
One of the most complete resources about bitcoins on the internet, even if it is not as powerful when it comes to USD transactions, Blockchain is a complete website, with hardware and software solutions for bitcoins, and also with some great features both for bitcoin miners and traders.
How to anticipate the evolution of the USD/BTC pair
As said before, the evolution on USD compared with the BTC can be easily anticipated when the market is calm, and when the international financial world is “quiet”. However, you will have to know what to look for. When Amazon announced that they want to launch their own internet currency, some expected for the value of the bitcoin to be affected, but a smart investor could have anticipated that the Bitcoin will grow on the short term. Why? Because such an announcement made by Amazon means that the virtual currencies are of interest, and even if the value of the Bitcoin might be affected when the Amazon Coin will be released, on the short term, this means a capital of trust for the BTC.
Check for websites that announce the acceptance of bitcoins as payment methods. Whenever a major website makes such announcement, the value of the BTC will grow.
The bitcoin is a free-floating currency, and as there is no government to control it, the news on the market is the most important factors that influence its value. References made by major websites to the bitcoin are also important, as whenever this currency reaches the attention of many people, the value of the currency will grow.
The bitcoin is an unusual currency from all the points of view. First, it is created continuously, and even if in the normal economy, more money in the market means less value for the respective currency, the bitcoin increases its value when it is created. One thing is certain: unless some major problems are found with the system, it is expected for the bitcoin to increase its value constantly, so it might be a great investment for people that want to protect their economies even against the mighty USD.