Advertisement

How much of a Real threat is Bitcoin to the US dollar?

How much of a Real threat is Bitcoin to the US dollar?

Quick take

1 minute read

  • Is bitcoin seriously threatening the dollar?
  • A chief global strategist at Morgan Stanley believes just this.

Ruchir Sharma, a chief global strategist at Morgan Stanley investment management, one of the biggest American investment institutions in the world has argued that the leading cryptocurrency poses a massive threat to the United States dollar. Due to a lack of trust in traditional finance, the dollar and its success are likely to end soon according to Sharma. Simultaneously, Bitcoin has time to get the upper hand and capitalise on this situation.

Writing in an article on the 9th of December for the Financial Times, the chief strategist highlighted some of the reserve currencies the world has had before the dollar. By the start of this year though, Sharma noted that the US dollar has been the global reserve currency for a century. Furthermore, he argues that the yuan in China and the euro have both failed in gaining trust throughout the world, hence how the dollar has come out on top. As to how long this will last with the introduction of bitcoin and other crypto-assets remains to be seen.

Currencies such as bitcoin are challenging the supremacy of the dollar according to the strategist. In 2020, the leading cryptocurrency has been one of the more popular investments by retail and institutions. It has quadrupled in price since March, during the start of the pandemic and due to the Federal Reserve continuing to print more money, the lack of trust in the dollar has been heightened massively.

“The dollar’s reign is likely to end when the rest of the world starts losing confidence that the US can keep paying its bills… Money printing is likely to continue, even when the pandemic passes. Trusted or not, Bitcoin will gain from widening distrust in the traditional alternatives.”

For more news on this and other crypto updates, keep it with CryptoDaily!

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Related TAGS:

You can share this post!

Advertisement