- Late last week, Jerome Powell, the Chairman of the U.S. Federal Reserve, was quoted as saying that much like gold, BTC too is an impressive ‘speculative store of value.’
- Powell also admitted during a recent TV appearance that Bitcoin had all the tools to completely transform the global economic landscape — despite its limitations when it came to facilitating everyday monetary transactions.
As per an all new circular issued by the Bank of America, President Donald Trump’s current financial policies could possibly start a new currency war, especially as the US economy tries to pick up after its recent slump — that was caused due to the nation’s trade stand-off with China.
At this point in the article, it should be pointed out that the overvaluation of the USD can directly lead to things like reduced overseas trade as well as decreased manufacturing activity (across the US). If that wasn’t enough, it can also result in everyday consumer items becoming more and more expensive (especially when compared to other counties.) In this regard, a recent report released by The Economist shows that a Big Mac now costs early 20% less in Europe when compared to the United States.
On the subject, an analyst for CNN was quoted as saying:
“The administration has several ways it could weaken the dollar. One would be to explicitly abandon the strong-dollar policy that has been in place for more than two decades. Or Trump could order the Treasury Department to sell dollars in a bid to lower their value. That type of intervention hasn’t happened since 1995.”
As most of our readers are probably well aware of, the US dollar is currently the reserve currency of the world.
However, as BTCs popularity has continued to increase, more and more people are beginning to see that the flagship crypto asset is a way better reserve currency than the dollar.
For example, Bitcoin’s intrinsic design makes its supply limited as well as increases its portability.
As the US dollar continues to weaken, it appears as though Bitcoin will continue to become a more attractive hedge option for many investors.
As per a recent report, the dominance of the US dollar has been rising for the past couple of months — with the premier fiat asset accounting for more than 72% of all BTC buy/sell transactions over the past 24 hours.