If the Fed actually follows through and hikes the interest rate, bitcoin will...

[Wiggs]

have a nice jump...

[Irongrip400]

Just locked in my 15 year rate Friday. Should be closing next month. I'm going to try and pay it off in half the time, but in case I don't, I'm saving myself  a little over $300k. Figured rates are going to start inching up, and won't be this low for a long time. How does Bitcoin work?

[Lustral]

Just locked in my 15 year rate Friday. Should be closing next month. I'm going to try and pay it off in half the time, but in case I don't, I'm saving myself  a little over $300k. Figured rates are going to start inching up, and won't be this low for a long time. How does Bitcoin work?

From Investopedia - brief story of how you can tell effect of interest rates on currency but how it means nothing cos you can't tell. Like all economics. Not saying Wiggs' prediction is wrong; but if the European economy goes tits up the dollar would probably rise, if Trump gets elected the dollar might drop (seriously) but who the fuck knows?

You can't call these things unless you have incredibly in depth knowledge or insider information.

A:
All other factors being equal, higher interest rates in a country increase the value of that country's currency relative to nations offering lower interest rates. However, such simple straight-line calculations rarely, if ever, exist in foreign exchange. Although interest rates can be a major factor influencing currency value and exchange rates, the final determination of a currency's exchange rate with other currencies is the result of a number of interrelated elements that reflect and impact the overall financial condition of a country in respect to that of other nations.

Generally, higher interest rates increase the value of a given country's currency. The higher interest rates that can be earned tend to attract foreign investment, increasing the demand for and value of the home country's currency. Conversely, lower interest rates tend to be unattractive for foreign investment and decrease the currency's relative value.

However, this simple equation is complicated by a host of other factors that impact currency value and exchange rates. One of the primary complicating factors is the interrelationship that exists between higher interest rates and inflation. The rise of interest rates in a country often spurs inflation, and higher inflation tends to decrease the value of a currency. If a country can manage to achieve a successful balance of increased interest rates without an accompanying increase in inflation, then the value and exchange rate for its currency is more likely to rise.

Interest rates alone do not determine the value of a currency. Two other factors that are often of greater importance are political and economic stability and the demand for a country's goods and services. Factors such as a country's balance of trade between imports and exports can be a much more crucial determining factor for currency value. Greater demand for a country's products means greater demand for the country's currency as well. Favorable gross domestic product (GDP) and balance of trade numbers are key figures that analysts and investors consider in assessing the desirability of owning a given currency.

Another important factor is a country's level of debt. While they can be managed for some period of time, high levels of debt eventually lead to higher inflation rates and may ultimately trigger an official devaluation of a country's currency.

The recent history of the United States clearly illustrates the critical importance of a country's overall perceived political and economic stability. In recent years, U.S. government and consumer debt has exploded to new high levels. In an attempt to stimulate the U.S. economy, the Federal Reserve has maintained interest rates near zero. Despite these facts, the U.S. dollar has enjoyed favorable exchange rates in relation to the currencies of most other nations. This is partially due to the fact that the U.S. retains, at least to some extent, the position of being the reserve currency for much of the world. Also, the U.S. dollar is still perceived as a safe haven in an economically uncertain world. This fact, more so than interest rates, inflation or other considerations, has proven to be the overriding and determining factor for the relative value of the U.S. dollar.

From Investopedia - it is gamble at anytime to invest in a currency. Too many factors and the big players throw amounts we can't imagine (hundreds of millions) on bets either way.

Late edit*

[Mr.1derful]

have a nice jump...

The FED won't be raising anything very soon. They tease it to put on the false pretense of a recovery, then chicken out. The FED is trapped.  If they do try raise rates, QE4 will soon follow.  The big problem will be when the oil hedges expire, while the oil price stays low.  The under writers of the hedges have to be taking a bath.

[El Diablo Blanco]

With the mtgox ripoff bitcoins are essentially shit.  It's an untrusted currency and the hype is all buy dead.  Obviously the hype and rise in price a couple years back was all manipulated and planned for the mtgox scam.

[Irongrip400]

The FED won't be raising anything very soon. They tease it to put on the false pretense of a recovery, then chicken out. The FED is trapped.  If they do try raise rates, QE4 will soon follow.  The big problem will be when the oil hedges expire, while the oil price stays low.  The under writers of the hedges have to be taking a bath.

QFMT

[Hulkotron]

have a nice jump...

Everything is proceeding according to plan.

[Wiggs]

Everything is proceeding according to plan.

Not with a fucking .25% raise.  I should have adjusted my statement with an at least x %. .25 is putting your toe in the water to test it. Well see the reactions over the next couple days.

[calfzilla]

See everyone, this is the kind of shit poor people concern themselves with; hence why they are poor.