Max Keiser, a cryptocurrency enthusiast, and US broadcaster are confident that Bitcoin will soon replace the U.S. dollar as the reserve currency used by central banks. The enthusiast who is bullish about Bitcoin also outlined that his prediction can be the case with the growth of financial trading platforms offering new services.
Bitcoin Has the Potential of Being the Next Reserve Currency
According to a media outlet’s report on March 12, Max Keiser stated that Bitcoin would be the next reserve currency that is used by central banks. As such, it will replace the U.S. dollar which is currently being relied upon by financial institutions. Keiser also attributed his statement to some factors which he believes will turn his prediction into a reality.
One of these is the fact that Bitcoin runs on a decentralized platform and that it is the blockchain technology. That being the case, it cannot be centrally controlled by anyone. It also takes away the need for intermediaries before payments can be made as is the case of fiat. Thus, people can send funds to each other without the control of a third party.
SWIFT Can Still be Controlled by Institutions
Kieser also pointed out that institutions can still control SWIFT which is used for cross-border payments. In this case, the U.S. can decide which country uses the global network for payments, and which should not. On the other hand, it may be entirely impossible when it comes to Bitcoin.
The broadcaster was also quick to note that the weak performance of the U.S. stock market has attracted its investors towards the crypto space. Large institutions which control billions of dollars are also looking into launching products in the crypto market. Some instances of these are Fidelity investments, Julius Baer, and the Intercontinental Exchange (ICE).
Bitcoin Can be the New Digital Gold
Apart from Max Kieser, other enthusiasts believe that Bitcoin can be the new digital gold. The latter is a comment made by Mike Novogratz, a former Goldman Sachs partner who stated that neither the U.S. dollar nor the Chinese money would take the title. He also predicted that Bitcoin’s price would gradually increment and in 2019, he sees the virtual asset trading around $8,000.
Elon Musk, Paypal’s co-founder, outlined that Bitcoin will replace fiat shortly. The same can be said about Tim Draper, a venture capitalist who outlined that only criminals will use fiat currency in five years from now. Draper also predicted that by 2022, Bitcoin would trade at around $250,000.