- Over the past few months, the world has been going into a spiral of economic downturn and chaos.
- Specifically, the dollar is getting weaker as the government prints more money into circulation in an attempt to keep the economy afloat.
Over the past few months, the world has been going into a spiral of economic downturn and chaos. Specifically looking at the US, the dollar is getting weaker by the day as the government prints more money into circulation in an attempt to keep the economy afloat as well as sending stimulus packages to families all over America. As the dollar gets weaker and weaker, many people are wondering what could replace it if the need arises. Many people within the crypto space are obviously going to turn to crypto but others are looking to the precious-metal of gold.
The well-known gold advocate and bitcoin naysayer, Peter Schiff has said that due to the dollar getting weaker, the price of gold and its strength, it’s going upwards.
“The price of #gold is now above $2,000 per ounce for the first time ever. For now, the significance of the dollar's record low is lost on the vast majority of investors. But as thousand-dollar milestones fall like dominoes the gravity of the problem will be more widely apparent.”
Over the past few months, the value of the dollar has fallen massively, especially when you compare it to other top reserve currencies. As a result of this, alternative and safe-haven assets such as gold have been boosted.
Many people are arguing that as gold has been boosted through the weakening of the dollar, so has bitcoin. Popular crypto trader, Scott Melker has said, “Bitcoin is the blue line. The dollar is the grey line. See the inverse action?”
As the digital gold narrative continues for bitcoin and the overall crypto space, many are wondering whether the leading Cryptocurrency could become an alternative if the dollar collapses.