Bitcoin on track to replace the dollar – Morgan Stanley


Morgan Stanley Exec Says Bitcoin is Coming for the US Dollar

Bitcoin on track to replace the dollar - Morgan Stanley

Bitcoin on track to replace the dollar – Morgan Stanley

  • The dominance of the US dollar will end along with the loss of confidence in the US, says Morgan Stanley chief strategist

  • Despite the status of an investment asset, more and more businesses use Bitcoin specifically for payments.

  • Regulation of cryptocurrencies will only exacerbate the position of the traditional financial market

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The leading cryptocurrency by market capitalization is beginning to be perceived as a means of payment again, says Morgan Stanley’s chief global strategist

Bitcoin on track to replace the dollar - Morgan Stanley

Despite the fact that bitcoin is mainly used as an investment today, cryptocurrency is on a course to replace the US dollar. Ruchir Sharma, the chief global strategist of Morgan Stanley, expressed this opinion in the author’s column of the Financial Times..

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According to Sharma, Bitcoin will only benefit from the growing distrust of traditional financial alternatives. Even despite the status of an investment asset, more and more small businesses are starting to use bitcoin in international trade, especially in countries where there are difficulties with the circulation of the dollar, Sharma writes. As a reminder, according to the law “On Digital Financial Assets”, the use of cryptocurrencies as a means of payment on the territory of the Russian Federation from January 1, 2021 is prohibited.

PayPal’s decision to include Bitcoin in the list of supported currencies for payments has significantly strengthened the position of cryptocurrency in the traditional financial market.

Imminent sunset

If the current jump in the bitcoin rate turns out to be another bubble, such a surge in cryptocurrency should serve as a warning for state machines for printing money, especially in the United States, the strategist believes..

“Don’t assume that your traditional currencies are the only store of value or medium of exchange that people will forever trust,” Sharma wrote..

Bitcoin on track to replace the dollar - Morgan Stanley

Morgan Stanley chief strategist believes that interference in the regulation of the digital currency market, as some governments are already thinking, can only “accelerate this populist uprising.”.

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Sharma argues that, as with any dominant currency, the US dollar will sooner or later have to give up its leadership status. Before the United States, only five powers had this status since the mid-1400s: Portugal, Spain, the Netherlands, France, and the United Kingdom. The dominance of each state currency lasted 94 years on average.

In 2020, the dollar has been dominating for 100 years, Sharma writes..

“This would be a reason to wonder how long this could last, if not for one” but “: the absence of a successor,” – said the chief strategist of the bank.

Old guard

According to Sharma, the main bitcoin skeptics are those people who did not grow up on digital technologies. These opposition figures tend to prefer gold, which has been bought as a defense against falling standard currencies for hundreds of years..

The dominance of the dollar is likely to end when the rest of the world begins to lose confidence that the US can continue to pay its bills, Sharma predicts. It is under this scenario that other currencies have lost their dominance in the past..

What’s more, the US and other major governments have shown little enthusiasm for curbing growing deficits. The printing of “helicopter money” is likely to continue even when the pandemic passes, the analyst suggests..

Bitcoin on track to replace the dollar - Morgan Stanley

The price of bitcoin in the BTC / USDT pair at the time of writing is $ 18,295.

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