As Bitcoin, the flagship cryptocurrency asset continues to garner support from leading figures in the industry, Chris Wood, the Chief strategist at Jefferies in a daring statement that might change people’s perceptions of digital currencies has suggested that the potential collapse of the United States Dollar Paper Standard could significantly benefit BTC holders in the nation.
Bitcoin Owners To See Benefits From US Dollar Collapse
VanEck’s head of digital asset research, Matthew Sigel, shared the Jefferies strategist’s bold opinions on the X (formerly Twitter) platform on Wednesday in Chris Wood’s words.
In the note to investors, Wood contended that a number of macroeconomic issues, such as aggressive monetary policies and rising debt levels, are posing an increasing risk to the US dollar’s long-standing dominance as the world’s major reserve currency, which might lead to more individuals adopting Bitcoin as a hedge fund.
According to the chief strategist, Bitcoin was allocated due to its potential. This is because, in light of the mounting evidence of G7 currency devaluation strategies over the past two decades and more, the crypto asset offers a sound alternative for risk-averse capital seeking a store of value.
Wood further noted that the collapse of the current US dollar paper standard is expected to result from this unconventional monetary policy if it is not removed in a responsible way. As a result, he argues that Bitcoin and gold owners might experience significant benefits, establishing them as major benefactors in a financial environment characterized by fiat currency volatility.
The chief strategist has also addressed misconceptions regarding Bitcoin and gold as an investment, noting that investments in both assets should be viewed as insurance, rather than trades in the short term. He further added that with the current state of the world’s economy, this long-term portfolio aims to strike a balance between long-term risks and opportunities.
BTC’s Uniqueness Sets It Aside
Overall, Wood’s perspective highlights a more widespread narrative among cryptocurrency supporters who see Bitcoin as a haven during an unfavorable economic climate. It also fits with the rising belief that digital currencies could provide a strong substitute to established financial systems, especially during inflationary pressures affecting fiat currencies.
In contrast to conventional fiat currencies, Bitcoin is not influenced by government choices or central banks, as it functions on a decentralized network. Due to its independence and limited supply, BTC is positioned as a unique asset that can maintain value amidst dwindling trust in established financial systems.
Bitcoin’s ability to serve as a hedge during challenging economic conditions is evident to the head of research at Fundstrat Tom Lee’s recent predictions. Lee believes that the asset is capable of rising to the $150,000 price level in the upcoming months, citing a sharp rebound in the second half of this year. Meanwhile, the research head claims the Fed will find it difficult to continue its strict monetary policy in the long run during this period.
You can get bonuses upto $100 FREE BONUS when you:
💰 Install these recommended apps:
💲 SocialGood - 100% Crypto Back on Everyday Shopping
💲 xPortal - The DeFi For The Next Billion
💲 CryptoTab Browser - Lightweight, fast, and ready to mine!
💰 Register on these recommended exchanges:
🟡 Binance🟡 Bitfinex🟡 Bitmart🟡 Bittrex🟡 Bitget
🟡 CoinEx🟡 Crypto.com🟡 Gate.io🟡 Huobi🟡 Kucoin.
Comments