Bitcoin
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Former Coinbase CTO Balaji Srinivasan expects Bitcoin (BTC) to replace the US dollar as the global reserve currency.
Source: Twitter
Srinivasan noted that in the past, investors have fled to dollar assets during times of stress, but now it’s a different time – people are getting rid of depreciating currencies, and the US dollar falls into that category. He also suggested that the Chinese yuan could become an alternative to the dollar.
Srinivasan believes in the potential of BTC
A week ago, Srinivasan predicted that the price of Bitcoin (BTC) would reach $1 million within 90 days due to hyperinflation in the US. On March 17, he made a bet on Twitter with Democrat James Medlock that Medlock would win $1 million in USD Coin (USDC) and 1 BTC if BTC did not break the $1 million level by June 17. Otherwise, the assets will go to the former Coinbase CTO.
Twitter users helped them create a smart contract with staking conditions. Srinivasan also said that he will block another $1 million in USDC in it.
The US dollar is weakening, bitcoin is gathering strength
A scenario in which BTC completely replaces the US dollar does not look very realistic at the moment. However, there are clear signs that the US dollar is weakening against other cryptocurrencies. The US Dollar Index is down 8.9% over the last 6 months and has lost 1.34% of its value over the past year.
Source: Yahoo Finance
USDX measures the value of the US dollar against a basket of other major fiat currencies. Its fall for suggests that the dollar is losing value. This is due to fears of a recession due to the increase in the Fed’s interest rate and the recent collapse of major US banks.
Bitcoin, meanwhile, is gathering strength: over the past 6 months, the main cryptocurrency has risen in price by 46.18%, and over the year – by 65.54%.
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