Bitcoin (BTC) Has A “Really Good Chance” Of Becoming A Global Reserve Currency, Analyst Says
Bitcoin (BTC) is increasingly gaining its fame as a favorable replacement to the current fiat backed monetary systems. One of the latest top personality to speak on the potential of BTC posing a threat to the current financial world is top selling author and financial analyst, Max Keiser.
An interview by Max Keiser on RT to CEO of e-commerce company BuildDirect, Jeff Booth, revealed the current challenges in the financial system and the importance of digital assets such as Bitcoin.
Bitcoin likely to become world reserve currency
The increasing global expansionary monetary policy led by the Federal Reserve’s $4.3 trillion monetary injections into the economy is raising tension on possible widespread inflation. Bitcoin is built to solve such challenges in the current legacy financial systems through its deflationary policy and Booth believes this may propel it into a world beating reserve currency.
“First of all, I see Bitcoin as a likely, a very likely candidate for a world reserve currency. So, I see it has a really good chance of winning over time as it works on a network effect.”
As the value of fiat currencies erodes due to governments expansionary policies, Booth said the need for a better system will emerge. He further said,
“Bitcoin seems to be that one that’s emerging as something that people trust more.”
Founder of BlockchainEDU, Jeremy Gardner, recently weighed in on the current value that Bitcoin holds against a failing financial system. Gardner tweeted,
Have you seen “The Big Short”?
I’m not calling bitcoin the solution (I wish it was.) I’m calling it a bet against our rigged system.
It’s cynical, but if you think the Frankenstein financial system we have today will fail in your lifetime, bitcoin is the hedge.
— Jeremy Gardner (@Disruptepreneur) June 15, 2020
So what are the predictions for Bitcoin?
Bitcoin (BTC) dropped below $9,000 for the first time in three weeks causing a bearish mood over the current market. The volatility of the top crypto coin has always been a factor to focus on and a number of analysts have made their predictions.
Chris Burniske, Partner at Place Holders, a decentralized applications VC firm, predicts a $1 trillion dollar market cap for Bitcoin, a sizable amount to be considered a global reserve. Reaching this level will require the price of Bitcoin to touch $50,000, or approximately a 450% increase from current market price.
Why #bitcoin > $50,000?
As discussed in May 2019, if $BTC is half as volatile in this cycle as it was in the last, we would still expect it to cross $50K and $1 trillion in network value.
$1 trillion has been a long time coming for this macro-asset.https://t.co/A2TlzzIjsh
— Chris Burniske (@cburniske) June 14, 2020
While the long term prospects of Bitcoin look bullish, the price of BTC in the near term may drop to $6000 level after a fake breakout to $10,400 at the start of the month, BEG reported.