There seems to be a great armageddon looming in the crypto and financial market. This is a raging battle of the Bitcoin and US Dollar (BTC vs USD). For several decades, the US Dollar has been the global reserve currency, but its supremacy is being threatened by the emergence and rise of Bitcoin (BTC).
Ever since the introduction of Bitcoin (BTC), the leading crypto has gained popularity among market investors as an alternative monetary model. The BTC vs USD contention has been a subject of argument among different schools of thought in the crypto world.
BTC vs USD: US dollar looks reliable as ever in the global market
Recent congress hearing on the Libra project of Facebook’s crypto was an avenue for US politicians to express their concern about the Bitcoin and US Dollar (BTC vs USD) dominance battle. Us congressman Brad Sherman had warned that bitcoin and other cryptos have the potential to threaten the US Dollar’s dominance in the global financial market.
It appears that the dominance of US Dollars over other currencies in the world is a source of national pride for Americans. The US Dollar’s relevance enables the United States government to influence the policies and actions of other foreign governments. Against the backdrop of this, some countries like Iran and North Korea have been using cryptocurrency, especially Bitcoin and Monero, to evade economic and financial sanctions imposed on them. The United States president, Donald Trump, has often expressed his dissatisfaction with Bitcoin as an “emerging threat.”
BTC vs USD rivalry and alternative appeal grows
If there is going to be any BTC vs USD potential threat, it is not happening now. However, the rise in the value of Bitcoin value will likely raise eyebrows. The BTC vs USD price is likely to hit the 100,000 Us Dollar mark by 2021. The US government is working on rolling out a series of crypto regulations to curtail the abusive use of cryptocurrency around the world.
The biggest threat to the US Dollar could be the issuance of a central digital currency bank. The argument against the Bitcoin as an alternative currency is its volatility and rigidity in supply, compared to a fiat-based currency like the US Dollar.
Featured image by Pixabay.
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