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Trump wants to back the dollar with Bitcoin, a store of value like gold, in the institutional market.
It is interesting to note that Trump considers backing the dollar with Bitcoin, right? It seems like a crazy idea! People argue: Oh, Bitcoin is backed, it is not backed, well, okay, now it will be the backing of the most important fiat currency in the world. Let that be said without saying Elon Musk. This will be very good for the dollar, in the long term, very important geopolitically.
But at the same time, this can bring a new dynamic to the relationship between the dollar and cryptocurrencies. After all, if the dollar is backed by Bitcoin, this can increase the stability of the currency and attract more investors to the cryptocurrency market. In addition, the crypto may become a more attractive option for investors looking to diversify their portfolios. It's a new chapter in the history of cryptocurrencies.
Understanding the Dollar’s Rise Amid Market Shift
The rise of the dollar amid market changes is a phenomenon that has generated much discussion and debate among experts and investors. Recently, MicroStrategy, a leading company in business intelligence solutions, announced that it was investing heavily in cryptocurrencies, which generated a huge reaction in the market.
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But before diving into this topic, it is important to understand the context in which this is happening. traditional market, led by multi-asset managers, has always been skeptical about cryptocurrencies. However, with the rise of the crypto market, many of these managers are beginning to reconsider their views.
One example of this is the recent episode in which BTG's head of crypto brokerage, Pío, recorded an episode with Alexandre Vasselli, from B2V, in which they discussed how the institutional world is seeing the rise of cryptocurrencies. Both came from the traditional market and migrated to the crypto world, which shows that there is a change in mindset underway.
However, there is still a lot of reluctance and lack of intellectual honesty regarding cryptocurrencies. Many hedge fund managers are still skeptical about the potential of cryptocurrencies as reserve of value and fiat currency. This is understandable, as the crypto market is relatively new and still evolving.
But as MicroStrategy’s Michael Sailor says, it’s important to understand the spirit of the issue and not just focus on the risks. Store of value is a concept that has been discussed for years, and cryptocurrencies have the potential to be a form of voluntary store of value, chosen by society over time.
Furthermore, the fact that the dollar is not backed by a currency and that fiat money is a recent creation of humanity, which began to be used after American Independence, is an important point to be considered. The objective of devaluing the currency as a form of indirect taxation and to cure the debt problem is a topic that should be discussed in more depth.
In short, the rise of the dollar amid market changes is a complex phenomenon that requires a deeper understanding of the context in which it is happening. It is important to consider the potential of cryptocurrencies as a store of value and fiat currency, and not just focus on the risks. The institutionalization of the crypto market is an important step in this direction, and the approval of the ETF is an example of this.
But, like Guedin, it’s important to remember that there’s still a lot to be done and that the change in mindset that’s underway is slow. There are still a lot of basic and silly questions being asked, which shows that there’s a lot to be learned. However, with the institutionalization of the crypto market and the rise of the dollar, there’s reason to be optimistic about the future of cryptocurrencies.
Source: ©️ Market Makers
