The original post: /r/bitcoin by /u/Phoenix-RisenFromAsh on 2024-11-15 02:29:50.

Shocked at how much bitcoin blew up I was a little confused how it was $125k and people weren’t freaking out more. Then I realized I’m an idiot and forgot about USD/CAD conversion, I didn’t realize it changed so much in the last few years. I’m stoned right now so I had to map this out after doing some googling. I know this is obvious stuff, but breaking it down for myself was a good reminder and thought I’d share. With trump as president and his commitment to his country, the US economy will probably perform really well which will increase the value of the USD lowering the buying power of CAD. At the very least the economy Trudeau has created simply means our money will continue to go to shit. More useless every day. Just another reason to put your money into bitcoin. Even if you sell at what you bought at you’re still winning cause the value was frozen in comparison to the USD value on bitcoin. Maybe I’m just too ripped… anyways, here’s my breakdown for myself.

Since you bought Bitcoin with Canadian dollars (CAD), the value of your Bitcoin in CAD depends on both the Bitcoin price in USD and the USD/CAD exchange rate. When the USD/CAD exchange rate changes, it can either increase or decrease the value of your Bitcoin in CAD.

• Example: If Bitcoin rises in USD but the USD/CAD exchange rate weakens (i.e., CAD strengthens against USD), the value of your Bitcoin in CAD could be less than you expect, because the CAD can now buy more USD.

• Conversely, if the USD strengthens against the CAD, even if Bitcoin’s price in USD stays the same, your Bitcoin could be worth more in CAD.