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A new forecast from a chief Morgan Stanley executive claims the dollar is due for a severe crash that could benefit Bitcoin in a major way.
What’s fueling this “inevitable” dollar collapse, and why does it make for a perfect storm for the first-ever cryptocurrency?
Morgan Stanley Asia Chairman: The Dollar Is Inevitably Doomed For 35% Crash
Morgan Stanley Asia chairman Stephen Roach has made a bold claim that he expects the dollar to suffer a serious collapse, forecasting a fall of 35% against other major world currencies such as the yen, yuan, euro, and countless others.
The analyst says that the impact of all of this stimulus money and poor fiscal policy will eventually catch up with the current world superpower’s native fiat currency.
Related Reading | Surprising Positive Earnings Growth in Asia May Spark New Appetite For Bitcoin
A fall against other stable forex currencies could be even further amplified in a highly volatile, digitally scarce asset like Bitcoin.
Especially with a perfect storm for Bitcoin brewing, the potential impact a failing dollar could have on the cryptocurrency and its adoption could be significant.
Failing Reserve Currency Status Could Be Perfect Storm For Bitcoin
With each new asset purchase or minting of new dollars, inflation increases and the dollar weakens. A weak dollar not only benefits Bitcoin due to more favorable exchange rates, but a reeling dollar exposes it to potentially losing its top spot as the global reserve currency.
Every 100 years or so, throughout history, there’s been a changing of the guard in terms of the superpower in charge and their currency acting as the global reserve.
In the future, China’s digital yuan could beat the digital dollar to the punch, providing more utility and tighter controls for governments that may win support over the aging paper fiat currency.
Related Reading | Peaceful Protestor Recommends Buying Bitcoin On Live TV To Opt Out Of Failed Monetary System
A digital dollar thus far has failed to come to fruition, although politicians were mulling the idea as a way to deliver stimulus money to the masses.
Until that time comes where the dollar faces a contender for the crown, USD continues to reign supreme. And while that very well could be China’s new-fangled currency who gives the dollar its first run for its money, Bitcoin may be the non-sovereign currency that the world chooses in the end.
Protests across the world are showing that citizens are fed up with the wealth, health, and other gaps between the top earners and those live paycheck to paycheck. And while there are dozens of more important reasons for these protestors to rightfully focus on, Bitcoin has already been mentioned at a number of demonstrations.
The perfect storm for the leading cryptocurrency is finally here.
