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First the euro collapsed, and now the pound has hit record lows against the dollar.



The British pound (GBP) fell to record lows against the U.S. dollar (USD) on Monday, Sept. 26, fueling speculation that the Bank of England may raise interest rates again to support the currency.

The retreat of the pound was by. almost 5%. Monday, falling below the 1985 low. Reached $1.0327before recovering to $1.0605. On Friday 23, the pound was down more than 3.5 percent against the dollar after the new government announced largest tax cuts in 50 years.

The following graph shows the equivalence of the pound to U.S. dollars from the early 1970s to the present. As can be seen, at the beginning of that decade, the British pound was equivalent to more than $2.5The pound hit a low of $1.08 in 1985, and on Monday it hit a new all-time low.

The pound against the US dollar since 1970. Source: Refinitif Datastrean / Reuters.

June to mid-September, the pound fluctuated between $1.14 and $1.23.but has deteriorated sharply against the U.S. currency in recent days.

Economist Peter Schiff on the fall of the pound to $1.05, said Sunday 25: “It appears that the latest round of deficit-financed tax cuts will backfire as the weak pound raises the cost of living more than the value of the tax cuts.”

The euro also continued to fall

The euro also fell on Monday its lowest value in the past two decades. At the opening of the markets it was trading at US$0.9551 and later rebounded to US$0.9674. Last Monday, August 8, the euro had fallen below the U.S. dollar, as reported by CryptoNews. According to the German bank Commerzbank, the weakness of the euro against the dollar could persist until early 2023.

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On the pound’s sharp fall, Sven Henrich, founder of Normanth Trader, posted a tongue-in-cheek comment on Twitter on Monday, “We have reached a unique moment in history where suddenly Bitcoin is less volatile than fiat currencies.”

In the face of these fiat currency fluctuations, there are. those who consider bitcoin as store of value long-term store of value. Control over the issuance of fixed-rate money is in the hands of central banks, so significant expansion of the money supply is possible within the scope of the authorities’ policies.

Bitcoin, on the other hand, not only has a limited supply to 21 million coins, but its issue rate is halved every four years approximately. This ensures that bitcoin’s inflation is reduces In programmed mode.

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