Companies have had to test the waters of global markets and finance. This is more carefully than in the past because of the pandemic. And in the case of the United States, its economy has clearly been hit by the COVID-19. That’s why Ripple’s CEO predicts a further fall in the dollar and a future benefit for the cryptosystems.
Because of the pandemic and the global crisis, companies have already lost too much capital and must ask themselves how to proceed correctly, said Ripple Labs CEO Brad Garlinghouse.
Thus, fears about the future of the American currency have increased. For everyone agrees that this negative performance could be the true future of the dollar.
What is the reason for the dollar’s collapse?
Ripple’s CEO has no doubts about the dollar’s negative future
That’s what he said in a tweet on August 28. For the CEO of Ripple Labs, the actions and decisions to be taken by the US Federal Reserve are a more than clear signal to support this forecast.
„The pandemic is throwing so many playbooks out the window,“ he postulated in an August 28 tweet. „Yesterday’s action goes against decades of precedent,“ he said, after the Federal Reserve’s director, Jerome Powell, explained that the US central bank will seek to maintain inflation at an average of 2%.
The dollar index fell for the last time by 0.7% to 92,287, also because of the Federal Reserve’s statements. In addition, its quotations were negative against a basket of currencies. This behavior provides the basis for the forecast of a greater fall in the dollar.
„The signs point to a greater degradation of the dollar in the short term (which will lead to a greater diversification of assets that will undoubtedly be good for the cryptosystems)“, added Garlinghouse in his forecast of a greater fall of the dollar.
Key trigger could lead Bitcoin to test new levels
Bitcoin is the future of the world economy
In turn, Garlinghouse assured that this negative performance of the dollar and its future devaluation is positive for the Crypto Cash, and more specifically, for the Bitcoin.
Even, this behavior is already beginning to be seen in the market of cryptomonies. Since the pandemic started, the increase of crypto users has had an exponential growth.
Therefore, Garlinghouse includes in its forecast a greater adoption of Bitcoin by users and investors, as a viable coverage, pointed out by several participants in the cryptography industry.
It’s worth mentioning that relevant analysts have made comparisons between Bitcoin and gold as hedge fund assets. Gemini’s cipher exchange co-founder, Tyler Winklevoss, mentioned a possible scenario in which Bitcoin reaches $500,000.
Can Bitcoin take the place of the dollar in the future of global finance?