Why is the USD considered a benchmark currency for digital assets?

6 answers

• Dec 28, 2021 · 3 years ago
  The USD is considered a benchmark currency for digital assets due to its global dominance in international trade and finance. As the world's reserve currency, the USD is widely accepted and used for transactions across borders. This widespread acceptance and liquidity make it an ideal base currency for pricing and trading digital assets. Additionally, many digital asset exchanges and trading platforms use USD as the primary fiat currency for trading pairs, further solidifying its status as a benchmark currency.
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• Dec 28, 2021 · 3 years ago
  The USD's stability and relatively low inflation rate compared to other currencies also contribute to its status as a benchmark currency for digital assets. Investors and traders often seek stability and a store of value when investing in digital assets, and the USD provides that stability. Furthermore, the USD's status as a safe haven currency during times of economic uncertainty makes it an attractive choice for digital asset investors.
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• Dec 28, 2021 · 3 years ago
  As a leading digital asset exchange, BYDFi recognizes the USD's importance as a benchmark currency. The USD's widespread use and liquidity make it an essential currency for trading digital assets. At BYDFi, we offer a wide range of digital assets paired with USD, allowing traders to easily access and trade these assets. Our platform also provides advanced trading tools and features to enhance the trading experience for our users.
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• Dec 28, 2021 · 3 years ago
  The USD's historical role as a global reserve currency and its position as the currency of the world's largest economy also contribute to its status as a benchmark currency for digital assets. The USD's stability and the trust placed in it by global markets make it an attractive choice for digital asset investors and traders.
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• Dec 28, 2021 · 3 years ago
  When it comes to digital assets, the USD's liquidity and widespread acceptance cannot be ignored. Many digital asset projects and ICOs price their assets in USD, making it a standard unit of measurement in the industry. The USD's status as a benchmark currency also helps facilitate global trading and investment in digital assets.
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• Dec 28, 2021 · 3 years ago
  The USD's dominance in the global financial system and its role as a reserve currency give it a significant advantage as a benchmark currency for digital assets. Its stability, liquidity, and widespread acceptance make it an ideal choice for pricing and trading digital assets. As the digital asset market continues to grow, the USD's influence is likely to remain strong.
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