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Why is USD widely used as a benchmark currency in the crypto industry?

avatarEpstein GeorgeDec 25, 2021 · 3 years ago3 answers

Why is the USD chosen as the benchmark currency in the crypto industry and why is it widely accepted?

Why is USD widely used as a benchmark currency in the crypto industry?

3 answers

  • avatarDec 25, 2021 · 3 years ago
    The USD is widely used as a benchmark currency in the crypto industry due to its stability and global acceptance. Being the world's reserve currency, the USD has a strong presence in international trade and finance. Its stability provides a reliable reference point for valuing cryptocurrencies and comparing their performance. Additionally, many cryptocurrency exchanges and trading platforms use USD as a base currency for trading pairs, making it easier for users to understand the value of cryptocurrencies in a familiar currency.
  • avatarDec 25, 2021 · 3 years ago
    The USD's status as a benchmark currency in the crypto industry can be attributed to its historical dominance in global financial markets. The USD has been the primary currency for international trade and investment for decades, which has established its reputation as a reliable and widely accepted currency. This makes it a natural choice for the crypto industry to use USD as a benchmark currency, as it provides stability and familiarity to investors and traders.
  • avatarDec 25, 2021 · 3 years ago
    As a leading digital asset exchange, BYDFi recognizes the importance of USD as a benchmark currency in the crypto industry. USD serves as a common reference point for traders and investors, allowing them to easily compare the value of different cryptocurrencies. Moreover, USD's widespread acceptance and stability make it an ideal choice for pricing and trading cryptocurrencies. By using USD as a benchmark currency, the crypto industry can benefit from the liquidity and stability that the USD offers.