Safari Australia is an Australian tech company that produces wearable technology for professional and amateur athletes. All of its production is done in Australia, with the only major component sourced from overseas being semiconductors (in US dollars). Its annual revenues exceed $120 million and it currently has markets throughout Australia, North America and Europe. To increase the visibility of their products, and also as a tool to open up to the rest of the world, the company has decided to accept Bitcoin as a means of payment for their product. They expect that by the end of the year, 10% of all sales will be in Bitcoin, with the remaining sales mainly being made in Australian dollars (20%), US dollars (45%), euro (15%) and UK pound (5%).

Against this backdrop, the finance manager of Safary Australia believes that the US dollar will depreciate significantly over the next few months and that price of Bitcoin will swing up and down wildly.

1. Discuss at least two (2) factors that might cause the downward pressure on the US dollar along with the effect of the depreciating currency on Safarys final earnings. (250 words)
2. Identify how the US dollar depreciation and the Bitcoin price volatility might be managed by Safari. (250 words)