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Highlights
- Block CEO Jack Dorsey is convinced Bitcoin can complement or displace the USD
- The coin has continued to serve as a major hedge against inflation
- Several factors including spot Bitcoin ETF places the coin in a positive vantage point
Jack Dorsey, the founder and CEO of Block Inc. has showered new accolades on Bitcoin (BTC) and its potentials in global monetary systems.
Bitcoin Over USD’s Lack of Freedom
The major tech innovator described Bitcoin as permissionless freedom money. Much more, Dorsey lauded Bitcoin’s capacity to either complement or overthrow the United States Dollar (USD).
talking about being permission-less. live from italy. starts soon. https://t.co/pf1Xkahl1p
— jack (@jack) June 22, 2024
Currently, the USD controls a significant part of the global market, a position that member countries of the BRICS Group are trying to contend. Unlike Bitcoin, the use of the USD requires the permission of the government and the bank.
Therefore, the government is armed to control the transaction that each person can perform. Dorsey acknowledged that the lack of freedom that comes with giving the government authority, gives a form of control against scams, attacks and other criminal activities. However, this protection comes at a significant cost, the Block CEO added.
Bitcoin provides freedom to all of the challenges associated with traditional fiat currency, particularly the USD.
Bitcoin as Inflation Hedge
It is worth noting that many key players in the crypto market as well the traditional market have recognized BTC’s ability to serve as an hedge especially with the United States economy constantly inching towards inflation.
Even in the midst of Egypt’s economic turmoil in March, Bitcoin ETF issuer Bitwise’s CEO Hunter Horsley emphasized the role of Bitcoin as a potential hedge against such crises. At the time, the Egyptian pound had weakened beyond previous records, plummeting to over 50 pounds to the U.S. dollar.
“There are many reasons people buy bitcoin. This is a scenario all hope to avoid. But the reality is that those that owned Bitcoin today did much better in $ terms than those that didn’t,” Horsley said.
For the United States, the University of Michigan Consumer Sentiment and 5-Year Inflation Expectations data was positive last month. In the same month, the consumer sentiment for the US came in higher at 69.1. On the other hand, inflation expectations for the year-ahead declined to 3.3% from 3.5% and five-year inflation outlook was steady at 3%, unchanged from April and below an earlier reading of 3.1%.
This economic conditions provides an avenue for Bitcoin to take a strong position on a global scale as a reserve asset. Meanwhile, the coin was trading at $64,300.68, down by 1.28% at the time of this writing.
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