Bitcoin might even become the next global reserve currency?
Bitcoin ( BTC ) poses a significant threat to the US dollar as the world’s leading currency, according to a senior strategic analyst at the major investment bank Morgan Stanley
Ruchir Sharma, chief strategist for global developments at Morgan Stanley Investment Management, believes that the dominance of the US dollar could be overturned by the shattered confidence in the traditional financial world, with Bitcoin being the likely beneficiary.
In an article in the Financial Times on December 9, Sharma first gave a brief overview of the historical developments in the world’s leading currencies. According to this, the US dollar has held its leading position for 100 years, which is partly due to the fact that other major national currencies such as the Chinese yuan or the euro have not been able to gain enough economic confidence to replace the US dollar.
Sharma therefore sees the next challenger for the American currency in decentralized digital currencies, above all Immediate Edge review. The market-leading crypto currency was already able to demonstrate its strength as a high-performance financial product in 2020 by quadrupling its market value since March.
In addition to the corona crisis, the driving force was, among other things, the „loose“ monetary policy of the American central bank. In this regard, Sharma explains
“The supremacy of the US dollar will come to an end when the world no longer trusts the US to pay off its debts. Money printing will continue even after the pandemic is over. Bitcon will benefit from the increasing distrust in traditional alternatives. “
The investment expert notes that Bitcoin is „making progress in replacing the US dollar as a means of payment“. The adoption of Bitcoin would steadily increase in many areas of application. „In the past few weeks, PayPal has bought Bitcoin in order to offer the cryptocurrency as a payment instrument next year,“ Sharma adds.
For this reason, he urges the US Federal Reserve to reconsider the impact of its monetary policy if it is to maintain its position of power:
“Bitcoin’s soaring could still turn out to be a speculative bubble, but even if that bubble bursts, this year’s cryptocurrency rush should serve as a warning to central banks, especially in the US. Do not believe that your traditional national currencies are the only stores of value and means of payment that people trust! „