The dollar fell 4% since January.
The gold, by contrast, has climbed 15%. But Bitcoin price has climbed more than 139% since the beginning of the year“, pointed out the historian.
Niall Ferguson is an award-winning journalist, financial historian, political commentator and a highly respected figure within the financial market, and is even an advisor to US presidential candidates. In a recent article published in Bloomberg he said he believes that Covid-19 has accelerated a monetary revolution and that „Bitcoin is winning“, with the dollar lagging behind, being surpassed even by China.
For the renowned historian, Golden Profit is outperforming the dollar because it is a natural solution to the inflation that the currency is and will continue to suffer and also because money is evolving, with paper money losing its relevance in the near future.
„Currencies are quickly disappearing from people’s lives.
In some parts of the world – not only China, but also Sweden – almost all payments are electronic.
In the United States, debit card transactions have exceeded cash transactions since 2017.
Even in Latin America and parts of Africa, cash is losing strength to cards and more and more people are managing their money through their cell phones,“ Ferguson said in his article.
So with the changes we have a clear disadvantage in the currencies that are insisting on not evolving into digital forms like China did with Digital Yuan, and of course, in this fight bitcoin has been ahead for a long time.
But that is not the main reason bitcoin is in the lead in the race for the current monetary revolution, but rather how the currency has proved resilient amid the financial crises, even appreciating strongly since the fall in April.
Bitcoin outperforming gold and especially the dollar
Ferguson showed how the recent bitcoin high highlighted the digital currency of its main competitors and demonstrated its capacity in relation to other „value reserves“ and how the dollar gradually becomes a bad option for this type of investment.
„The dollar is the world’s favorite currency, not only dominant in central bank reserves, but also in international transactions (…) According to the Bloomberg dollar index, the fiduciary currency has fallen 4% since January. Gold, by contrast, has gone up 15%. But the price of Bitcoin has risen more than 139% since the beginning of the year“.
Ferguson believes that the Covid-19 crisis has been good for the Bitcoin and for the cryptomoedas in general. First because he accelerated the use of digital money around the world, „what could have taken 10 years was achieved in 10 months. Second, as a result of the pandemic, investors have been exposed to financial surveillance and fraud. These two trends were good for bitcoin adoption and consequently helped in greater institutional adoption.
„What is happening is that Bitcoin is gradually being adopted, not as a form of payment, but as a reserve of value.
Not only by individuals with many resources, but also technology companies that are investing“.
This is a trend that continues to grow, making Bitcoin an increasingly valuable asset in the medium and long term. Ferguson even quoted another expert, the Argentine Wences Casares, who said:
„After 10 years working well and without interruption, with nearly 100 million investors, adding about 1 million new investors per month and moving more than $ 1 billion per day in the world, Bitcoin has a 50% chance of reaching $ 1 million in five or seven years“.
„USA should adopt Bitcoin“