.jpeg)
Bitcoin and cryptocurrencies are not yet ready to fully replace the United States Dollar, USD.
The interesting thing is that Bitcoin, crypto seem to function as a safe heaven asset as of late. Which is odd, since the risk profile of Bitcoin, crypto is akin to small capitalization moonshot type technology stocks, which is natural given the nature of the Blockchain technology underlying Bitcoin.
In the Russia Ukraine conflict cryptocurrencies are used by both sides to store and transfer wealth. Here the term money is not used on purpose, since it is more and more obvious that Bitcoin and cryptocurrencies have partially replaced the USD in Russia and Ukraine, which were dolarized economies in the first place.
Bitcoin and crypto are slowly chipping away at the United States Dollar, the USD by finding niche usage in the global conflict areas.
Actully, analysts have expressed the view that Bitcoin is a new digital USD. Whether this will turn out to be true remains to be observed. However, for now at least partially Bitcoin, cryptocurrencies, crypto for short are finding niches where they take market share of the USD.
No comments:
Post a Comment