While the world’s oldest fiat currency British Pound has lost over 99% of its value, the currencies of emerging markets are on an ascend along with interest and investment in Bitcoin and cryptocurrencies.
British pound, the oldest getting dumped
If we take a look at the world’s oldest fiat currency, it is British pound. This currency has lost not just a majority of its value but almost all of its value as put by the co-founder of InterchangeHQ and former Global Data/Rider Growth at Uber, Dan Hedl on Twitter:
The British pound is the oldest fiat currency in existence at 317 years. The pound was originally defined as 12 oz. of silver. It’s now worth less than 0.5% of its original value. In other words, the most successful long standing currency in existence has lost 99.5% of its value
— Dan Hedl (@danheld) September 8, 2018
As shown in the chart below, the situation over the years for this currency has been depreciating:
Meanwhile US Dollar:
On the other side, starting in 2009, Bitcoin, the leading cryptocurrency is currently down 67% from its all-time high (ATH) of December, 2017 at about $20,000. However, the tech market always works at a rapid pace and crypto market even more so.
The gains are quick to come and quick to lose but the market lacks any regulatory and worldwide recognition per se along with being in a nascent stage, so it has a really long way to go.
Emerging markets’ currencies on rise
Meanwhile, if we take a look at the emerging markets’ currencies that are also increasingly getting interested in the crypto market, the situation is a lot different.
As shared by Fundstrat Global Advisors’ Thomas Lee last month, there is an important correlation between bitcoin and emerging markets.
These emerging markets are slowly but surely moving towards Bitcoin and cryptocurrencies. Directly or indirectly, Bitcoin has captured the interest of the investors, especially the millennials. Moreover, countries like Argentina, Iran, and Turkey where inflation is rising at a rapid pace, digital assets hold even more appeal.
According to the data provided by Coin.Dance, a few of the these countries’ Bitcoin investment can be seen on a rise:
Bitcoin hasn’t reached the level where it can potentially affect the world at large. However, this nascent industry is gradually creating its presence in the market where the people, investors, institutions, and governments are still trying to understand, learn and make their move accordingly. But only time will time how exactly the crypto space going to develop in terms of technology, user and investor interest, and price.