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USD / MXN Analysis

@estefania asked an interesting question about making trading decisions using other currencies such as the Mexican Pesos. ⁠I am located in mexico, and for the last year, the price of usd has been going down against the mxn peso, so everytime something pumps, for me it doesn’t pump as much, or the price even goes down a little. That gives me a hard time making decisions as I still have to take into account the usdmxn currency behavior after @ChartChamp, gives his opinios, what could I do? @ChartChamp is it possible for you to give your insights also for my particular case? tl;dr: I operate on mexican pesos, so everything for me is different because the usd is going down against the peso.

We have an international audience, and I’ve had a few CVI members talk to me about how their currencies are getting hyperinflated. This is a serious concern especially with inflation rising again. I think crypto has emerged as the safe haven for these hyperinflated currencies. There is the option to hold USDT instead of another fiat currency like MXN. So it helps to hold USDT or trade crypto. It also makes more sense to hold assets like stocks that are rising in value or gold. Gold has stood the test of time for being a store of value, I think Bitcoin is trying to provide that store of value too. However, gold has more stability and is likely to hold its value despite growing at a much slower pace. Bitcoin is very volatile, I wouldn’t be surprised to see a 50% decline so I don’t think it’s a great store of value yet. But Bitcoin is outperforming a lot of assets, and crypto is providing a way to store value. In terms of comparing USD and MXN, the U.S. dollar tends to outperform almost all other fiat currencies. I think the pesos could start to rebound at some point though. The USD/MXN chart seems to be near the lows where MXN could start to trend up once there is a reversal and rebound.

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