Gold & Bitcoin: Dual Currency Contenders To Bring Down The US Dollar?

Despite the Federal Reserve’s efforts to curb the de-dollarization narrative, the swelling US debt metrics are pointing out the flaws, degrading the US dollar. The narrative, which was initially highlighted by Senator Janet Yellen, has now become a global form of debate, expressing qualms about the USD’s stability in the long run. As the dollar erodes on a global platform spurred by the ongoing multipolar narrative, gold and bitcoin are emerging as “capable” assets, luring investors to seek refuge in them and yield lucrative returns at the same time.

Also Read: Notable US Billionaires Express Qualms On Rising US Debt Numbers

Dumping the US Dollar: What’s Happening?

The US debt numbers are constantly revamping, riding high on the radar, and inching closer to breaching the $34 trillion mark. According to the predictions made by Hartnett, the arrival of Bitcoin spot ETFs disrupted the financial landscape up a notch, dubbing it a “blowout year” for BTC to gain momentum. This has further derailed the US dollar’s momentum, giving BTC a smooth landing for a swift takeoff.

“We’ve commercialized bitcoin. My big prediction for 2024 is that these ETFs will allow bitcoin to cross the chasm and have its central, key moment.” as shared by former billionaire Chamath Palihapithiya.

At the same time, with China and Russia banking on the de-dollarization narrative, the US dollar was left alone to fight for its survival. Moreover, with the US dollar’s reputation as a currency that can be “weaponized,” the neighboring nations are now looking forward to exploring USD alternatives to move away from the dollar in the long haul.

In the meantime, China’s consistent efforts to stock up on gold have also borne fruit. Global banks are flocking to Gold, catapulting the price of precious yellow metal to new highs.

This development has given rise to two new strong currency alternatives, which have gained strength at a time when the US dollar debt metrics are portraying the American currency as an unsteady vehicle inching towards its demise.

Dual Currency Narrative Is Gaining Strength

Speaking about the rise of Bitcoin amid such a stark economic crisis, Palipithiya claimed that Bitcoin could become the next big currency system on the planet, resulting in the alienation of the US dollar in the long haul.

“If this thing gets to these levels of appreciation. It’s going to completely replace gold and become something that has transactional utility for hard assets. If you marry that with this fear some folks have about dollar debasement. You start to see some interesting opportunities.” Palihapitiya opined.

Palipithiya claimed that the world is now closing in on the dual currency narrative. In simple words, the concept would entail users making use of two currencies. The first would eventually be used for transactions, and the other would be utilized to purchase permanent assets.

Also Read: US Dollar Dump: India & China To Trade With Maldives In Local Currency

“There’s an increasing body of countries that will become dual-currency. They will look at their local currency, and they will look at Bitcoin. And they will say both of these things are needed. The first is when they’re transacting on a daily basis for goods and services. And the second is when you need to buy a permanent asset that needs to have residual value. They’ll buy BTC.” As shared by Palipithiya on his podcast