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Bitcoin’s Revival In 2020 Can Pose Challenges For The US Dollar

  • Experts suggest that 2020 may help in the widespread growth of cryptocurrencies vastly.
  • A huge amount of people are seeking the benefits of digital assets because they seem to be fitting to their needs.
  • One of the greatest drawbacks of this digital currency is the volatility of its price.

The global pandemic of Covid-19 has crippled the financial status of many powerful countries, to a large extent. They are finding it impossible to recover from the economic recession. However, to our surprise, many cryptocurrencies mainly Bitcoin are emerging
to the markets after the little period of recession. And in fact, experts suggest that
2020 may help in the widespread growth of cryptocurrencies vastly.

Growing Number of People Adopting Cryptocurrency

In a very recent podcast of the Unchained, Warren Davidson the US House
Representative has briefly explained, the role of cryptocurrency in the coming days.
The world is seeing global fluctuations in powerful centers. Davidson told that
it is very important for the US to maintain its competitive lead in financial innovation. He emphasized the need of doing well in the fintech sector so that it doesn’t fall behind countries like China.

A huge amount of people are seeking the benefits of digital assets because they seem to be fitting to their needs. This may pose difficulties to the US Dollar, as the number of people adopting cryptocurrency is increasing considerably. In the past few years, the growth of stable coins is commendable. It has lured a great number of users and investors from the government as well as private institutional companies.

Can Bitcoin Replace US Dollar?

The CEO and co-founder of Coinbase, Brian Armstrong think that Bitcoin has the potential to replace the US dollar in all ways. He also predicted that the transition of paper currency to digital currency may happen by 2030. However, the cryptocurrency will have to improve certain services and overcome some issues which hold it back from becoming a supplant of the conventional currency. The US dollar has very well established itself in the global market. It is considered to be one of the greatest fiat currencies in the world.

However, Bitcoin has failed to achieve any such feat. One of the greatest drawbacks of this digital currency is the volatility of its price. The sharpness of fluctuations of its price in the market prevents the companies to invest in them. They must improve their scalability and regulatory issues. Bitcoin can supplant the US Dollar in the coming future. But, for this to happen it has to improve in certain areas.

As the pandemic stricken countries are trying to find a way of this challenge they will be under many debts. This will provide a good opportunity for China and other European countries to establish digital currencies which can potentially compete and defeat the US Dollar.

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