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- A basket of the Global Reserve Unit consists of top currencies from around the world.
- Peter Brandt, a veteran commodity trader for over 40 years, believes that cryptocurrency should not be taken to that basket in any form.
- Brandt believes that currencies will evolve from the paperback scheme, but there are concerns over their digital counterparts.
A basket of the Global Reserve Unit consists of top currencies from around the world. The USD, Yen, and the Euro are few of the currencies which are part of a global basket. Peter Brandt, a veteran commodity trader for over 40 years, believes that cryptocurrency should not be taken to that basket in any form. Moreover, he also stressed that tracking back to a gold standard payment system too was out of the question.
Prediction:
World will NOT return to Gold standard
World could adopt a formulaic "SDR" global reserve unit consisting of USD, JPY, CNH, EUR, CAD, AUD, GBP, Gold, Silver, Crude Oil
Bitcoin $BTC or other cryptos will NOT be part of basket
— Peter Brandt (@PeterLBrandt) July 22, 2020
Cryptocurrencies Are No Replacement To Fiat Currency
Experts feel that cryptocurrencies have evolved, but it is not yet sufficient to say that digital currencies are the way through. They lack an issuing authority and are encrypted with payment codes. A private key assigned to holders to unlock the digital wallet and access the funds. There will be a huge amount of loss to bear with if an investor happens to forget the alphanumeric code.
Brandt, in no way, is contradicting the story of Bitcoin but is not ready to buy it due it’s the vague value proposition. Cryptocurrencies are in the middle of an identity crisis and should soon be over with.
Purging the bulls is a lousy concept
The bulls in the crypto market are consistently ‘purged’ for it to remain stable. By doing so, Bitcoin could even touch $50,000 shortly. Subsequently, the price of Bitcoin fell more than 50% in March this year. Hence, it is pretty evident that the cryptocurrency is very volatile to specific market conditions.
Eventually all paper fiat will be obsolete and global monetary system will become tokenized – perhaps in a form we have not even yet imagined.
I just object to the arrogance of crypto-cultists to assume their favorite pet rock will reign supreme.
— Peter Brandt (@PeterLBrandt) July 22, 2020
Brandt believes that currencies will evolve from the paperback scheme, but there are concerns over their digital counterparts. Experts opine that the value could even denigrate to zero, which is detrimental for emerging economies. Moreover, the BTC has lost its safe-haven status under the current pandemic. Additionally, Brandt has raised concerns that the US government will significantly reduce its debt by deflating its currency. It will be enthralling to see how they carry out the process as it will involve moving from the regular fiat currency.
