“The devaluation of the US dollar can strengthen Bitcoin’s position as an asset. This was stated by Cio Bitwise Matt Hougan. The policy of President Donald Trump, aimed at weakening the US currency, will be a key factor in such changes. Hougan recalled that the dependence of the world economy on the dollar has already led to an imbalance in international markets. In his speech, the Chairman of the Council of Economic Consultants of the White House Steve Miran stressed that the existing model contributes to trade […]”, – WRITE: Businessua.com.ua
The devaluation of the US dollar can strengthen Bitcoin’s position as an asset. This was stated by Cio Bitwise Matt Hougan.
Presidential Administration Donald Trump, aimed at The weakening of the US currency will be a key factor in such changes.
Hougan recalled that the dependence of the world economy on the dollar has already led to an imbalance in international markets. In his speech, the Chairman of the Council of Economic Consultants of the White House Steve Miran stressed that the existing model contributes to trade deficits and reduction of the production sector.
This thesis expresses the intention of the US government to seek a weaker dollar, even if it hurts the status of the main reserve currency, Hougan stressed.
According to Cio Bitwise, it has short -term and long -term effects on bitcoin. In the near future, the key role is played by the reverse correlation between the dollar index and bitcoin. Over the last five years, the figure rationed from -0.4 to -0.8.
In the long run, the devaluation of the dollar can change the global financial system, increasing the role of alternative reserve assets, such as bitcoine and gold.
Hougan believes that the transition to a more fragmented reserve currency system is inevitable. In such a situation, bitcoin, having a stable proposal, independence from governments and global nature, becomes an attractive tool for investors.
Earlier, Bitwise predicted that a bitcoin course could reach $ 200,000 by the end of the year. Hougan confirmed that this scenario remains possible.
We will remind, on March 25, CIO BITWISE stated that Trump’s decision to create a strategic bitco-reserve eliminated the “last existential risk” for the first cryptocurrency.
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