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According to JP Morgan, the U.S. Dollar may be on its way out. This may be bullish for Bitcoin.
Jan Nieuwenhuijs, an analyst of gold, recently tweeted out a report from JP Morgan — one of the world’s largest banks. The jaw-dropping report revealed that the famous bank believes that the USD could “become vulnerable to a loss of value relative to a more diversified basket of currencies, including gold”. The bank’s analysts cite the “persistent and rising deficits in the U.S. (in both fiscal and trade.)”
Indeed. Forecasts currently chart America’s fiscal deficit to reach $1 trillion within the next decade. This could result in a relative devaluation against a diversified basket, as the bank writes, and may actually be a catalyst for the U.S. Dollar to start to recede as the world’s reserve currency.
JP Morgan’s harrowing report echoes comments made by Mark Carney, the head of the Bank of England — the monetary authority behind the Pound. As reported by Ethereum World News previously, the central banker said that the world is in need of an entirely new monetary and financial system, citing his sentiment that the U.S. Dollar-based system that exists today is quite archaic. In fact, Reuters reports that Carney said the USD is currently playing a “destabilizing” role in the world economy, citing the effects of globalization and trade spats.
He added that with the dollar being the de-facto reserve asset of the world, with USD being a primary settlement tool for international trade and central banks hoarding the currency, “developments in the U.S. economy, by affecting the dollar exchange rate, can have large spillover effects to the rest of the world.”
According to Raoul Pal, this next global system will be a boon for Bitcoin and gold. The former head of Goldman Sachs’s hedge funds sales division and current Real Vision CEO explained that this new infrastructure, which will nearly definitely by digital, will act as an on-ramp for the cryptocurrency market.
Indeed, the wide adoption of a digital form of money will acclimate society to transition to Bitcoin and decentralized solutions, especially if governments are encroaching on the privacy and safety of citizens.
Original article posted on the EthereumWorldNews.com site, by Nick Chong.
