According to an analyst at the main American investment bank Morgan Stanley, Bitcoin (BTC) poses a major danger to the world’s reserve currency, the U.S. dollar.
According to cointelegraph.com, Ruchir Sharma, chief global strategist at Morgan Stanley Investment Management, claims that because of global distrust in traditional finance, the dollar’s reign is likely to end, while Bitcoin is likely to capitalize on the lack of confidence.
Sharma presented a short outline on the history of the world’s reserve currencies in a December 9 report in the Financial Times, mentioning that the run of the dollar has lasted 100 years at the beginning of 2020. According to the economist, some big global fiat currencies, such as the euro or China’s yuan, also struggled to win the trust of the world, underlining the absence of a dollar successor.
A new class of decentralized contenders are likely to challenge the dominance of the dollar, Sharma said. Since March in the wake of the pandemic and the U.S. Bitcoin has already established itself as one of the best investments in 2020. The Federal Reserve’s continued printing of cash, he observed:
“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.” The strategists have noted that the adoption of Bitcoin is constantly increasing, from investment to international trade and other purposes. Sharma also noted that Bitcoin is beginning to “progress on its ambition to replace the dollar as a medium of exchange.” “In recent weeks PayPal and its Venmo subsidiary have started storing Bitcoin with an eye towards accepting it as payment next year,” he added.