As A Global Asset, Bitcoin Does not Look Likely to Overtake the U.S. Dollar
By Harry B – Crypto Speculator
Bitcoin has been said to have the potential to substitute the US Dollar as a global reserve currency, according to one of the most well-respected foreign currency exchange experts. "Backing the dollar is the highest, widest and most open government bond market in the world," said Marc Chandler, chief market strategist at Bannockburn Global Forex and author of the book "Making Sense of the Dollar". Despite how many investors are actively buying and selling Bitcoin in recent times.
A global reserve currency is a kind that promotes cross-border commerce, including expenditure and international debt obligations. Global central banks keep reserve currency to help guard from significant foreign exchange rates and monetary policy shifts.
The U.S. dollar has been the predominant stable currency since 1944, and investors tend to store reserves in dollar-denominated securities or retain dollars in periods of turmoil in the world economy. For example, the U.S. dollar index, which measures its value versus a basket of other significant fiat currencies, grew from 94.65 to 103.00 in mid-March.
Nevertheless, some experts expect that investors will lose confidence in the currency over the next few years, due to the investors buying and selling cryptocurrency and other fiat currencies.
Are dollar revenues are expected to grow?
The US Dollar jumped in September, bringing an end to a six-month downward slide, even after the Fed embraced a more flexible approach to monitoring inflation at the end of August.
As per Chandler, the dollar rebound has something to do with technical considerations. The currency appeared oversold to majors, and in August, the bullish stance in EUR / USD had hit extremes. As a result, the European Central Bank’s hopes for further quantitative stimulus have been amplified by a modest bounce.
With the dollar getting lower, recent uptrends in Bitcoin, gold, and greenback-denominated assets may soon restart.
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