- Brad Garlinghouse believes that cryptocurrencies are emerging as a stable and trusted alternative to in fiat currencies.
- The coin market has witnessed a surge by 80% since the March low of $3800, while USD value has dipped by 3%.
- The Ripple CEO added that USD value as a reserve currency is showing signs of weakening, while prospects are bright for cryptocurrencies like Bitcoin.
When a celebrated crypto personality like Brad Garlinghouse, CEO, Ripple, gets vocal about the power-packed potential of cryptocurrencies, one can safely conclude that it only paints a pretty picture of a finance market of the future. Investors, put all your worries to rest as putting your money in cryptocurrencies such as Bitcoin or Ethereum for the rest of 2020 could still earn you high dividends. Read on to know more.
The Coin Conundrum
As a part of a thread chat with Bloomberg which aimed to survey potential alternatives to the USD, Brad tweeted that governments are seriously considering cryptocurrencies for instantaneous, superefficient and more reliable transactions.
Thread on this USD as the world’s reserve currency has been the backbone of global financial infra, and that position isn’t going to disappear in favor of gold/the yuan/crypto/any other asset any time soon. But is it weaker today? Yes. (1/3) https://t.co/Td04uJOEXs— Brad Garlinghouse (@bgarlinghouse) August 3, 2020
Garlinghouse also did not ignore the fact that cryptocurrencies were being viewed with suspicion by many throughout 2019, but detractors’ speculations have been put to rest-thanks to the coin market which is soaring like never before. This may be attributed to the value of the USD dipping by 3%.
Garlinghouse clarified that although the coin market has witnessed a surge by 80% since the March low of $3800, chances of digital currencies replacing the USD as global reserve currency soon would not be very realistic.
Covid vs Crypto
The USD has been the world’s go-to reserve currency, but the impact of Covid 19 on this has been undeniable. The pandemic is casting detrimental effects on the global economy, which has weakened the value of the currency to quite an extent.
Interestingly, as the Ripple CEO pointed out, Bitcoin and other digital assets seem to have performed surprisingly well even at the face of ongoing adversities. It is presently trading at $11,800 and hasn’t shown signs of weakening.
Government Nod Across the Globe
Despite the adverse situation, several countries are gearing up to create an economy conducive to a flourishing crypto market. China, for instance, is reportedly testing its digital wallets in a bid to accelerate progress of its national digital currency projects, while Japan is also working on furthering the prospect of a central bank digital currency (CBDC). Moving on, Iran too, has issued 1,000 plus licenses for cryptocurrency mining as of January and exempting 47% electricity tariff for the benefit of government registered crypto miners.
Diversification with Digital Money
As fiat currencies are turning out to be risky for investors, they are bound to explore diverse options, said Brad, who is bullish about the fact that future global financial systems would also follow suit.
As per a Decrypt report, experts think that the USA’s fiscal stimulus efforts due to Covid 19 could diminish the value of US dollar, and eventually lead alternatives such as cryptocurrencies to perform better.