The crypto rally is in full swing as Bitcoin and decentralized finance (DeFi) is pushing the crypto industry forward as a whole. Given the recent 400% surge in Bitcoin prices, Financial experts are predicting that the largest crypto coin by the market will be among the next driver of the financial world after the US Dollar.
Experts, strategists, and former government officials are now bullish about the Bitcoin future as large institutional investors are pouring in large sums in this crypto asset. Larry Summers, the former Secretary of the US Department of Treasury, talking in Bloomberg’s Wall Street Week show, said that Bitcoin was here to stay and finite supply of the coin would grow its prices further. He said:
“I think some institution like Bitcoin is here to stay. I don’t think the whole thing is going to collapse. I think that having one up and then one way down and move back, it looks much more resilient. Therefore, people are going to move towards it. Finiteness of its supply is going to be a factor to raise prices.”
Some are predicting even a greater triumph for Bitcoin. One of them is former Canadian Prime Minister Stephen Harper who believes that in the future, Bitcoin and central bank digital currencies (CBDCs) may be part of a basket of reserve alternatives to the US dollar. He, in an interview with investment service Cambridge House’s Jay Martin at the Vancouver Resource Investment Conference on Sunday, January 17th, said;
“It’s hard to see what the alternative is to the U.S. dollar as the world’s major reserve currency. Other than Gold, Bitcoin.”
Other than Bitcoin, the second-largest crypto asset by market cap Ethereum, which, as reported, recently progressed to the list of the world’s top 100 assets, is also very much in the news but big investors are only interested in Bitcoin. This is evident by the recent large investment that came from the US and Canadian companies.
The interest in bitcoin is tied to the previous year when central banks globally took an aggressive monetary policy approach to address the Covid-19 crisis. The risk of inflation caused by the printing of money to cope with the COVID-induced economic shocks revealed some of the unique characteristics of bitcoin as an alternative reserve asset for firms.
The Bitcoin is now oscillating around $35,000 levels after hitting ATH of near $42,000. As reported, the newly announced $3 trillion stimulus is expected to bring more to Bitcoin prices.
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