Bitcoin was created to provide independence from Government control to the users. But I think it is not so independent.
It depends on fiat currency especially the Dollar for it's valuation.
My question is ; we are measuring it's value in dollars. So is not it true that Bitcoin is dependent on fiat currency for it's existence?
Please share whatever views you are having.
Kindly correct me if I am wrong.
In my opinion Bitcoin is fully independent from any type of the another things in digital world but still here we can see that price of the Bitcoin depend upon the another factors like Fiat currency and another some demands in the international market .
so here we can see that Bitcoin is not dependent to anything but its price is dependent at many factors .
when the demand of the Bitcoin get down in the cryptocurrency market then the value of Bitcoin get also down and in the opposite when the demand of the Bitcoin increases then its price also increases which is usual in everything type of assets ( whether you are in share market , cryptocurrency or any practical life thing ) .
But hair dependency of Bitcoin with the Fiat currency is totally independent but if we will analyse the price of Bitcoin with the fluctuation of Fiat currency then we will find that only about 0.1% to 1% chances are there that can impact over the price of Bitcoin , indirectly we can say that there is no connection between the Fiat currency value with Bitcoin price .
Sometimes when a negative news runs in cryptocurrency market then that results into down in the demand of Bitcoin and that results into dump in the price of Bitcoin and vice versa with positive news .