Despite the turbulent months experienced by the cryptocurrency market at the end of the first half of this year, the situation has stabilized relatively in recent weeks and a positive upward trend has returned to the scene.
However, cryptocurrencies are no longer just an asset whose price “fires once in a while” for an unknown reason, and they are also considered a fixed part of the financial system by many well-known economists, informs CoinTelegraph.
Bitcoin has the support of several economists, replacing gold
They recently met at the Bretton Woods: The Realignment conference, the title of which was a metaphor for the 50th anniversary of the crisis. the Bretton Woods monetary system, when on August 15, 1971, the US government, led by President Richard Nixon, abolished the convertibility of the dollar into gold, which had operated since the UN Monetary Conference in 1944.
However, the current conference focused on emerging financial assets such as bitcoin, which many analysts say could end the dominance of the dollar as a global reserve asset.
Key statements in this regard are commodity market analyst Mike McGlone of Bloomberg Intelligence, who likened the current digitization of money and finance, along with the growth of the cryptocurrency market, to factors that helped the US dollar gain “fast and organic” dominance over gold as a reserve asset.
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According to McGlone, bitcoin thus directly questions the position of gold as a traditional competitor of the dollar, and its “replacement” has already begun.
These claims also support the problems associated with the loose monetary policy of the US Federal Reserve (FED), which, in addition to a huge increase in circulating dollars, also contributed to the accumulation of these funds in the cryptocurrency market, which grew faster than gold during the crisis – traditional “hedging” asset.
However, the controversies of bitcoin pull the arguments of state regulation, which according to opponents of cryptocurrency will significantly affect the new digital asset. However, McGlone argues that even tough regulations would not be able to disrupt the gradual dominance of bitcoin over gold.
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In addition, other analysts say the goal of US regulators is not to stop bitcoin, but rather to protect investors from bitcoin-related fraud.
According to Liam Bussell, head of communications at Banx’s cryptomen business, regulators in the United States are open to any diversification of funds as long as they are transparent and fair.