Bitcoin proponent Max Kaiser believes that BTC has the potential to become the new benchmark currency and replace the entire $ 5 trillion foreign exchange market. In one of his programs, the Wall Street veteran drew attention to a recent report from Citibank, which claims that bitcoin has an advantage in global payments due to its decentralized, deflationary and secure nature. These characteristics allow the flagship cryptocurrency to go mainstream.
Kaiser stressed that the advantages of bitcoin as a medium of exchange in global payments make banks, including Citibank, useless.
“This is happening right now because a transaction is a settlement, so you don’t need Citibank. BTC removes the need for Citibank. It makes Citibank as useless as all other banks. I can trade with you and I don’t need any bank for that. You don’t need a central bank for that. ”
The Citibank document sees Bitcoin as evolving from a form of payment to a store of value, but Kaiser is of the opposite opinion:
“They say that bitcoin started as a means of payment, and now people look at it as a store of value, but in fact, BTC acted as a store of value, and then turned into a means of payment. This is the whole story of money. Citibank should know the history of money and how it comes about, but … I applaud them for the realization that they can be pushed out of business. «
Moreover, the expert views the world’s leading cryptocurrency as something capable of replacing trillions of dollars in international currency exchange:
“Here’s what, $ 5 trillion a day in the foreign exchange market can be completely replaced by bitcoin as a base level. We realized that now it is possible to send currency from country to country instantly and practically free of charge. «
BlackRock: Bitcoin beats gold as a store of value
Over the past six months, the price of gold has fallen by more than 10%, and many investors have ceased to consider this asset as a hedge against risks.
At the same time, there is another trend, when investors are entering the crypto sphere en masse, Russ Kasterich, who manages the BlackRock Global Allocation Fund portfolio, told Bloomberg. Bitcoin is becoming an increasingly popular instrument.
Cryptocurrency is clearly winning the battle with gold, which has been viewed as the safest asset for centuries.
According to the top manager of the investment company, the surge in interest in digital currency occurred against the backdrop of the coronavirus pandemic, which reduced the mobility of the global economy. In addition, the authorities of many states began to print money to support the population and business.
This monetary policy of central banks has increased inflationary risks and forced retail and corporate investors to seek an independent asset that will protect their capital.
Gold also rose in price initially. In the summer of 2020, a troy ounce of this precious metal jumped above $ 2,100. However, then the price began to decline, and now this product is traded in the region of $ 1,700.
According to Kasterich’s forecasts, investment in bitcoin will continue to grow in 2021 if inflation suddenly soars above regulators’ expectations.
Note that many experts, on the contrary, consider gold to be a much more reliable asset compared to bitcoin. Peter Schiff periodically urges investors not to buy cryptocurrency, but to invest in precious metal. However, the son of Peter Schiff, Spencer Schiff, despite his father’s advice, decided to transfer all his funds to Bitcoin.
