Bitcoin has very good potential to be the successor to the dollar and the next global reserve currency. The store of value, which acts as a hedge against inflation, has for the time being finally drawn the institutes into the asset class. Crypto analysts point to the high earning “smart money” investor class as the only reason for the sudden momentum in the market.
However, the retail volume in emerging markets has tripled in the last month alone and is trending towards new highs. A CEO of a crypto company claims this is a sign that citizens in those countries where their money is much weaker than the dollar are voting for a better financial system with that money – one based on Bitcoin.
Emerging markets vote for Bitcoin as a better financial system
Bitcoin is the answer, a phrase that is tossed around for almost anything, to the point where it’s often used as a joke or a meme. However, in view of all the critical world problems cryptocurrency deals with, this is the first serious chance for a significant social change in the monetary system.
Bitcoin is indeed the answer to the problem that has plagued money for a long time. There was a time when the dollar was pegged to gold, but when that was abolished in the early 1970s the dollar was forever a means of inflation and control.
Gold – the only true standard for hard money – rose from $ 30 an ounce to a high of $ 2,000 this year. But gold also made it with Bitcoin.
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In a digital age and a time when scarcity is more important than ever, Bitcoin is once again the safe haven solution that shows its age.
Futures rates and fund flows show that institutions are redistributing gold into the first cryptocurrency and moving the needle significantly. Crypto enthusiasts who have been watching the market for years need a reason to point out the sudden dynamism of the market and that is the most obvious factor.
Retail interest in emerging markets has increased three-fold in the past month | Source: BTCUSD on TradingView.com
And while US retail interest may not have reached the level of FOMO and retail interest like the crypto bubble, the same cannot be said for emerging markets like “South Africa, Malaysia, Nigeria and Indonesia” the CEO and Co-Founder of Luno Global, Marcus Swanepoel.
The executive says these markets have tripled in volume and are at all-time highs, and it all happened last month when the breakout occurred.
– Barry Silbert (@BarrySilbert) November 25, 2020
He adds that in these countries, where their native fiat currencies are not nearly as strong as a weakening dollar, people vote with the money they have for a “better financial system”.
Bitcoin is the answer again. The firm supply and inability to be seized or stopped by third parties make Bitcoin the non-state currency of the future that the world needs.
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The reason more advanced countries like the United States, Britain, Japan, and elsewhere are not leading this changing tide is because there the dollar, euro, and yen have always worked in their favor.
The rest of the world was not so lucky and these civilizations lived poorly because of it. But Ray Dalio recently sketched in his writings this yearAny monetary empire eventually falls, and it is always due to the ease with which the empire had it.
Especially with Americans, who for much of their history have had it so easy with the dollar as the global reserve currency, the country could be the least able to cope with the dramatic change in the current monetary system.
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