Cryptocurrencies

Morgan Stanley chief global strategist in Financial Times sees Bitcoin (BTC) outperforming the dollar – Cryptocurrencies

Joe Biden surrounds himself with a Bitcoin (BTC) pessimist

After JP Morgan, it is Morgan Stanley’s turn to begin his romance with Bitcoin (BTC). The chief strategist of NY’s fourth-largest investment bank contemplates in the Financial Times that Bitcoin could dethrone the dollar as an international reserve currency.


“Will Bitcoin End The Reign Of The Dollar?” “

Such is the title of this tribune written by the Chief Global Strategy Officer, Morgan Stanley in the salmon pages of the prestigious City newspaper. Ruchir Sharma is not in the lace and begins his remarks by recalling that Portugal, then Spain, the Netherlands, France, and England, also benefited from the privilege of minting the global reserve currency.

These reigns lasted 94 years on average. In 2020, the dollar has already held 100 years. That would be enough in itself to wonder how much longer it will last. The question is: is there a successor?

Ruchir Sharma

For Ruchir, suitors are no match. The Euro, introduced in 1999, has failed to gain the confidence of the world due to lingering doubts about the effectiveness of governance of the Euro Zone by several states. The Yuan suffers from a reverse trial because of its single party.

It is certain that between the brutality of imperialist American foreign policy and the Chinese Orwellian totalitarianism, Europe had a card to play. Unfortunately, these legitimate hopes were dashed by the blissful optimism of Europeanists that the Germans would agree to finance the unemployment benefits of southern economies completely undermined by a too strong euro. Not to mention the end of customs barriers or the US military’s stranglehold on the Middle East allowing Uncle Sam to label oil – the blood of the global economy – in dollars and no other currency. The famous “petrodollar” system.

U.S. officials were therefore confident that they could, in response to the Covid crisis, print dollar unlimitedly without undermining its reserve currency status, allowing the country to continue to run large deficits without apparent consequences. This was without counting the new category of contenders that is emerging: cryptocurrencies.

Ruchir Sharma

The banker goes on to note that the value of Bitcoin has almost quadrupled since the start of the pandemic in anticipation of a devaluation of the dollar by the Fed. For him, ” Bitcoin has always aspired to establish itself as “digital gold,” a safe store of value providing a safe haven in times of turmoil.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

This dubbing did not, however, go without the eternal reserve about the volatility of Bitcoin. Four times that of gold, it puts off the old guard of baby boomers, only 3% of whom own BTC, according to a recent survey in the United States.

The dollar is wavering

Older investors may shun Bitcoin But Beehive think the ” Bitcoin’s roots run deep And imagine that the dollar could end up losing its exorbitant privilege:

The creation of Bitcoin comes at a pivotal moment for the dollar. America’s debt to the rest of the world has exceeded 50% of its economic output (GDP). Crossing such a threshold is often a harbinger of a coming crisis. This debt now stands at 67% of GDP. It’s clearly a red zone. The reign of the dollar will end when the rest of the world loses confidence in the ability of the United States to pay its bills. This is how dominant currencies have fallen in the past.

Ruchir Sharma

Morgan Stanley strategist adds that the Fed will continue to run the printing press, even after the pandemic is over, and the Bitcoin will benefit from the growing loss of confidence in traditional assets. It is a wake-up call to the money printing nations, especially the United States, which should not blindly believe that fiats currencies would be the only stores of value that the masses will ever trust.

The paper ends with a warning that our Minister of Finance, Bruno the Mayor, would do well to keep in mind, he who has just gone on a crusade against exchanges:

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Trying to intervene by trying to regulate the boom in digital currencies, which some governments are envisioning, may only accelerate this popular revolt.

Tags

Related Articles

Back to top button
Close
Close