Anthony Pompliano has shown an optimism about Bitcoin’s takeover of the reserve currency in his new podcast.
“In 25 years, the financial world will be completely different.”
Currently, the US dollar is considered the global reserve currency, and more than 60% of all banks in the world hold reserves in this currency. According to Pompliano, this is to change “towards a multi-currency” world without borders.
On the contrary, he explained that the dollar is guaranteed to be impaired as central banks will have to continue to create more of the national currency. Additionally, he highlighted the benefits of bitcoin’s “zero-cost replacement” when used in different countries.
Likewise, Anthony Scaramucci, founder and managing partner of SkyBridge Capital, has also expressed hope that Bitcoin will take over as the world’s currency reserve. Consequently, he predicted that the US would also digitize the dollar soon. Furthermore, arguing about Bitcoin’s volatility, Scaramucci added:
“Bitcoin is volatile because it is in the early stages of adoption. Amazon had the same volatility curve 24 years ago. But if you were to stake $ 10,000 on Amazon during its IPO, you would have $ 21 million today. “
In this context, Pompliano predicted two possible scenarios when it comes to Bitcoin and fiat currencies.
“One is that they compete directly with each other, Bitcoin wins and fiat currencies lose.”
In the above case, governments will need to digitize fiat currencies to stay up-to-date. In the latter case, Bitcoin remains valuable even in a competitive multi-currency market. However, the International Monetary Fund has recently expressed concern over the adoption of Bitcoin by El Salvador. The IMF stressed that the adoption of Bitcoin would threaten “macroeconomic stability.” Earlier this year, the chairman of the Federal Reserve at St. Louis James Bullard said:
“I just think in terms of Fed policy it will be the dollar economy.”
We don’t know if this will change yet. Pompliano agreed that governments that apply blockchain technology in their economies will drastically surpass those that adopt it last.
22-09-2021, Mr Advice TEAM