A sense among members of the cryptocurrency community has been growing recently about the dollar relevancy against Bitcoin’s imminent uprising.
Bitcoin (BTC) was flat after a big jump occurred on Monday; this jump leads to a new 2020 high peak above $12,400. Analysts are now talking about whether the largest cryptocurrency can hold the higher ground. This event created a high volume and it was what is commonly called “a convincing break”. Elsewhere, prices for the recently-and-strangely-launched Curve DAO token poured 26% on Monday, even as total value locked into the affiliated Curve Finance protocol rose above the $1 billion, creating a five-fold increase on top of the last week.
In the past few days that Warren Buffett’s Berkshire Hathaway bought shares in a gold miner, commentators instantly started to speculate about the billionaire investor that might be making bets against stability the dollar or U.S economy in general terms.
Bitcoin analysts and investors have been wondering why it took him so long, due to at least trillions of dollars of money that filled the financial system this year by the Federal Reserve to help capitalize U.S. national debt.
“The money printer working overtime is causing Buffett and his board grave concern,” Mati Greenspan, of the foreign-exchange and cryptocurrency research firm Quantum Economics, wrote Monday. “While Buffett is perhaps not so sure how to react to a world that no longer values bonds and government debt, others are sure.”
A sense among members of the cryptocurrency community has been growing recently, a sense that their well-established assessment of the traditional financial system as unsustainable is finally getting attention among Wall Street experts, and most of the mainstream investors. If the concerns grow more, it might guide prices for bitcoin, which many digital-asset investors see as serious inflation protective barrier strongly similar to what gold is.
Goldman Sachs, which in May of this year criticized with fierce bitcoin saying that is “not a suitable investment, and talking about some of its weaknesses among other extra comparisons” hired a new head of digital assets and showed a rising interest in cryptocurrencies from institutional clients. The firm stated in July that the U.S. dollar will soon be at risk of losing its global status and was also losing relevancy.
Dick Bove, a five-decade Wall Street analyst that works now for the firm Odeon, made a report the last week mentioning that the U.S dollar-ruled financial system could end its days and the fault will be of the possibility of a multi-currency system that also includes digital currencies.
“The case for bitcoin as an inflationary hedge and sound investment is being articulated with crystal clarity by influential people outside of our crypto bubble,” the digital-asset analysis firm Messari wrote last week. Buffett never called back under any circumstances.
Currently, a preference from major businesses and governments is very unlikely, once they feel a glimpse of control, and education on this currency the acceptance will naturally grow. A world without the US dollar hegemony is possible now.
By Jenson Nuñez.
