David Vance

Bitcoin

<p>In this period of economic turbulence marked by rampant inflation and a constantly increasing national debt, many are turning to bitcoin and other cryptos as a potential alternative to the dollar. However, a new analysis from Morgan Stanley highlights the reasons why the US dollar retains its supremacy and explains why it is unlikely that cryptos can replace it in the near future.</p>
<h2 id="h-morgan-stanley-s-statements">Morgan Stanley’s Statements</h2>
<p>The financial experts at <a href="https://www.cointribune.com/la-banque-morgan-stanley-met-en-garde-contre-les-nft-et-le-metaverse/" target="_blank" rel="noopener noreferrer nofollow">Morgan Stanley</a> have recently shared their view on the issue of cryptocurrencies potentially replacing the dollar. According to them, despite the deterioration of American economic indicators and the rise of cryptos, the US dollar remains difficult to surpass. David Adams, head of G10 FX strategy at Morgan Stanley, stated: “<em>Bitcoin is too volatile to be considered a true replacement for the US dollar.</em>” He added: <em>“If I hold a cryptocurrency that increases by 10% per month, I am less likely to use it for transactions. Instead, I would hold onto it to benefit from its appreciation.</em>”</p>
<div class="my-4">
 <div class="ads " data-page-type="" data-location="1">
 </div>
</div>
<p>The experts at Morgan Stanley <a href="https://watcher.guru/news/cryptocurrency-can-never-dethrone-the-us-dollar-experts-suggest" target="_blank" rel="noopener noreferrer nofollow">also pointed out</a> that the recognition of a currency as legitimate takes decades. Although Bitcoin is currently the main contender, it is still far from being perceived as a stable haven by investors. The rapid fluctuations in its value and its primarily speculative use make it a poor candidate to replace the US dollar in daily commercial exchanges.</p>
<div class="affiliate-button"><a class="affiliate-button__link" href="https://bitpanda.pxf.io/c/2801338/1295465/15871" target="_blank" rel="noopener noreferrer nofollow">Discover the Bitpanda platform</a> <a class="affiliate-button__disclaimer" href="https://www.cointribune.com/en/sponsored-content/" target="_blank" rel="noopener noreferrer nofollow">This link uses an affiliate program.</a>
</div>
<h2 id="h-cryptos-vs-dollar-the-showdown-continues">Cryptos vs Dollar: The Showdown Continues</h2>
<p>The rise of bitcoin and alternative cryptocurrencies has interesting implications for the global economy, prompting governments and financial institutions to explore the creation of central bank digital currencies (CBDCs). Unlike cryptocurrencies, CBDCs issued by central banks could offer increased stability and broader adoption while incorporating the benefits of blockchain technology. These digital currencies could improve transparency, reduce transaction costs, and facilitate financial inclusion.</p>
<p>However, despite the rise of cryptocurrencies, the experts at Morgan Stanley remain confident in the resilience of the US dollar. Despite persistent inflation and rising national debt, the dollar maintains a dominant position due to its long history of stability and trust. Its central role in the global economy, used in the majority of international transactions and foreign exchange reserves, gives it considerable inertia, making its replacement difficult.</p>
<p>In conclusion, although cryptocurrencies and <a href="https://www.cointribune.com/en/crypto-cbdcs-do-not-address-the-needs-of-the-people/" target="_blank" rel="noopener noreferrer nofollow">CBDCs</a> present promising innovations, the US dollar remains the reference currency due to its historical stability and the continued trust it inspires. Bitcoin and other cryptos still have significant challenges to overcome, such as volatility and regulatory uncertainty, before they can truly compete with the dollar on the global stage.</p>

Here’s why bitcoin will never replace the dollar according to Morgan Stanley!

Table of Contents

Cointribune EN

Other articles published on May 24, 2024

Polymarket gets backlash over ‘approved’ outcome on $13M Ethereum ETF bet

Crypto Bounces Back, But Stablecoins Emerge As Investor Safe Haven

Lost in the Crypto Maze? Turn Fear into Fortune

Ethereum ETF approved, so why aren’t we rich yet?

Ripple taking ‘cheap shots’ at Tether, says Samson Mow

Caldera launches Guardian Nodes, creating a new path for teams to raise funds and decentralize th...

Join our free newsletter for daily crypto updates!