By Nathan Ferguson
Balaji Srinivasan, the former CTO of the prominent crypto exchange company Coinbase, stated that the US dollar is near its downfall. As per the former official, the top crypto asset Bitcoin will replace it in the form of a worldwide reserve currency.
The former official stated that dissimilar to the past when people used to rush toward the assets dominated by the dollar under times of pressure, the current scenario is quite different.
Former Coinbase CTO Thinks Bitcoin Could Replace USD
Srinivasan added that the historical data points out that the investors are leaving the devaluing currencies. As per him, the respective category also includes the USD.
On his official Twitter channel, the former official shared that Raymond Thomas Dalio (a well-known hedge-fund investor and billionaire) has a diverse point of view on reserve currencies from a historical perspective.
In the words of Srinivasan, Dalio prefers the US dollar at present. Nonetheless, he also asserted that Dalio has formerly been changing his stance on the reserve currencies, including the Dutch guilder and British pound.
In this way, the former official of the crypto exchange mentioned that the status of these reserve currencies does not last long. After the decline of the USD, Srinivasan thinks that the space will be occupied by Bitcoin (BTC).
He revealed that this is the difference between the year 2008 and the current year is that status of the US dollar has consistently declined in the eyes of investors. According to him, the Chinese RMB could also take the place of the US dollar to become the next reserve currency across the globe.
Srinivasan keeps on reiterating his former view that the primary crypto token’s price could reach the $1M mark in ninety days as hyperinflation is being experienced by the US financial system. In the meantime, several people believe that he anticipated these changes to take generations to take place rather than just 90 days.
Though not everyone thinks that the top crypto asset will take the place of the USD, some clear signs exist that the USD is weakening in comparison with the rest of the crypto assets. In the recent six months, an 8.9% dip has been witnessed in the US Dollar Index. The currency has been deprived of nearly 1.34% proportion of its value over the year 2022.
The USDX is responsible for measuring the USD’s value as in line with the rest of the prominent fiat currencies. Keeping this in view, such a significant plunge in its value indicates that the well-known fiat currency’s value is decreasing to a great extent.
The possible reason behind the respective slump is growing fear concerning recession because of the interest rate spike caused by the Fed and the recent crash of the top banks in the US.
Bitcoin Sees Great Price Rises
In the meantime, Bitcoin has been expressing great resilience over the past months. The crypto asset has seen a 46.18% hike in the previous six months. Along with this, the year-to-date metrics bring to the front that BTC has experienced a 65.54% increase.
It is noteworthy that the majority of the primary crypto token’s gains are credited to trading operations within the United States. Bitcoin’s performance has paved the way for rapid adoption and increased prices. However, experts are of the view that any increase in the price of BTC cannot reach the levels anticipated by Bitcoin proponents.