The dollar’s recent weakness and the decline has economists calling for the death knell. Amidst the discussion surrounding dethroning the asset, other competing currencies, and even gold are being pointed to as alternatives suitable as the next global reserve currency. However, according to one ETF manager CEO, Bitcoin has also cemented itself as a viable “alternative to the dollar” and could one day assume its role.
The Dollar’s Continued Decline Sparks Conversations Of Alternative Currencies
The dollar’s role as the global reserve currency isn’t an easy one, but it does come with plenty of benefits. The dollar’s dominance has helped the United States’ economy thrive over the last hundred years, making it a superpower across the globe.
All other assets in the world trade against USD and acts as the base currency in which all exchange rates are determined. The dollar has long enjoyed its power mostly unchallenged, but times are changes, the tides are turning for the US, and the dollar is being crushed by its own crown.
Related Reading | US Dollar Could See Bearish Reversal: Is A Bitcoin Reckoning Coming?
The entire global economy revolves around this major world currency, and maintaining the top spot isn’t always easy. The United States has been forced to print more and more money supply in order to stave off recession and help its citizens withstand the crunch from the country’s shrinking GDP.
The global reserve currency’s weakness has sparked conversations about its eventual demise, but signs show that the currency is ready for a major comeback. This comeback could be responsible for the recent pullback in Bitcoin and gold.
Move Over Gold: ETF Manager Says Bitcoin Has Cemented Itself As An Alternative To USD
Still, discussions remain surrounding potential alternatives to the dollar. JP Morgan’s Stephen Roach pointed to the upcoming digital yuan, gold, or perhaps even Bitcoin as an alternative to the dollar. Others have begun to echo that sentiment, including CEO of ETF manager GraniteShares, Will Rhind.
“Bitcoin’s rise is the same story as gold. Investors are looking for alternatives to stocks, bonds and the dollar,” he told CNN. “Gold is the currency of last resort, but bitcoin has cemented itself as an alternative to the dollar as well.”
Although Bitcoin’s safe haven narrative fizzled out in late 2019 as the asset crashed and gold continued to gain, a recent trend says its returning in a major way. And this latest round is coming from hedge fund managers.
Related Reading | Economist: Early Days of Bitcoin Uptrend Are Here, Breakout Has A Long Way To Go
Recently, the Nasdaq-listed MicroStrategy disclosed a new 21,000 BTC investment to the SEC, calling the cryptocurrency a “reasonable hedge against inflation.” Paul Tudor Jones, another famous billionaire hedge fund manager compared Bitcoin to gold’s role in the 70s. And finally, a top British fund with billions of pounds worth of assets under management is considering allocating as much as 30% of their gold holdings into Bitcoin.
This same hedge fund manager, says that Bitcoin has reached its now or never moment with institutions, who are ready to begin adopting the cryptocurrency alongside their gold holdings and other hedges against the dollar, stocks, bonds, and other failing investments.