Morgan Stanley: Bitcoin Will Gradually Replace the Dollar

Ruchir Sharma, a global strategist of the American financial conglomerate Morgan Stanley, has recently shared his expectations regarding the future of bitcoin. He points out that dollar is losing its positions as the world’s reserve currency and bitcoin will gradually replace it as a tool for payment and savings.

According to Sharma, this process will accelerate in the future and there are several reasons for this.

First of all, the US dollar holds the status of a reserve currency already for a hundred years. Only five countries enjoyed such status in the past: Portugal, Spain, the Netherlands, France and the United Kingdom. The currency of each of these states maintained its dominant position for 94 years on average. This raises the question of how long the dollar will last and what currency will become its successor.

Sharma thinks that cryptocurrency can claim the status of the reserve currency. Demand for bitcoin rised considerably during the current crisis due to the declining public confidence in the national currencies. They lose their value affected by the states’ approach to printing money. According to Sharma, this was the reason why investors began to purchase bitcoins “in bulk” during the pandemic. As a result, BTC has risen in price by 400% since March 2020 and become one of the top investments of the year. The analyst adds that even after the pandemic ends, the countries are unlikely to stop printing additional money.

Secondly, small companies use bitcoins in their international trade operations. This is especially true for such countries as Nigeria, where there are difficulties with the turnover of dollars, and Argentina, where the national currency is extremely volatile. The announcements of PayPal appeared to be an additional driver for the growing popularity of cryptocurrency. In November, the payment system added support for BTC as well as three more coins for the American users and informed that customers in the other corners of the world will enjoy access to similar features in 2021.

Finally, the third factor stimulating the spread of bitcoin is a gradual decline in skepticism about cryptocurrencies. Bitcoin as well as other coins are viewed negatively mainly by those who grew up in a non-digital age, i.e. the older generation. Young people, on the other hand, are more committed to the digital assets. According to statistics, this type of assets is owned by 27% of millennials and the share is constantly growing. Sharma suggested that the demand for cryptocurrencies would continue to grow among such people and this trend would only intensify as the governments need to regulate digital assets.

The rapid rise in the price of bitcoin could still be a bubble, Sharma warned. But even if it bursts, the appreciation of cryptocurrencies should be perceived by the countries that print money as a signal. National currencies, especially the US dollar, will not always remain the only reliable means of exchange or payment, Sharma concludes.

The growth of bitcoin value throught the last year was truly unprecedented. Here, at Bitcoin Up, we are committed to helping people make use of the growing trend and earn money investing in one of the world’s most attractive assets. Following the link https://bitcoinup.eu/ you can find out more about the earning opportunities we offer. Like any business, you need working capital to begin with. To start profiting with Bitcoin UP, you don’t have to dispose of large amount of funds. The good news is that you can make an easy start investing the minimum amount of $250.