Businesses have had to test the waters of global markets and finance. This with more care than in the past because of the pandemic. And in the case of the United States, its economy has clearly been hit by COVID-19. Therefore, the CEO of Ripple predicts a further fall of the dollar and a future profit for cryptocurrencies.
Well, because of the pandemic and the global crisis, companies have already lost too much capital and must ask themselves how to proceed correctly, said Ripple Labs CEO Brad Garlinghouse.
In this way, fears about the future of the American currency have increased. Well, everyone agrees that this negative performance could be the true future of the dollar.
Ripple CEO has no doubts about the negative future of the dollar
Thus he asserted in a tweet August 28. Since for the CEO of Ripple Labs, the actions and decisions to be taken by the Federal Reserve of the United States are a more than clear signal to support this forecast.
“The pandemic is throwing so many playbooks out the window”, he postulated in a tweet on August 28. “Yesterday’s action goes against decades of precedent”he said, after Federal Reserve Director Jerome Powell explained that the US central bank will seek to keep inflation at 2%, on average.
The dollar index fell for the last time 0.7% to 92,287, also due to the statements of the Federal Reserve. In addition, their prices were negative against a basket of currencies. This behavior is the basis for the forecast of a further decline in the dollar.
“Signs point to further dollar degradation in the short term (which will lead to further diversification of assets which will certainly be good for cryptocurrencies)”Garlinghouse added in his forecast of a further decline in the dollar.
Bitcoin is the future of the world economy
In turn, Garlinghouse assured that this negative performance of the dollar and its future devaluation is positive for cryptocurrencies, and more specifically, for Bitcoin.
Even this behavior is already beginning to be seen in the cryptocurrency market. Since, since the pandemic began, the increase in crypto users has had an exponential growth.
For this reason, Garlinghouse includes in his forecast a greater adoption of Bitcoin by users and investors, as a viable hedge, pointed out by several participants in the crypto industry.
It is worth mentioning that relevant analysts have made comparisons between Bitcoin and gold as reserve assets of hedge values, the co-founder of the Gemini crypto exchange Tyler Winklevoss mentioned a possible scenario where Bitcoin reaches $ 500,000.
Could Bitcoin take the place of the dollar in the future of global finance?