Former Coinbase CTO is confident that bitcoin will replace the US dollar

Former Coinbase CTO Balaji Srinivasan expects bitcoin to replace the US dollar as the global reserve currency.

Srinivasan noted that in the past, investors fled to dollar assets during times of fear, but now is a different time — people are getting rid of depreciating currencies, and the US dollar falls into the same category. He also suggested that the Chinese yuan could become an alternative to the dollar.

This is not Srinivasan’s first statement on bitcoin, as the former Coinbase service desk executive is known for his outrageousness. A week earlier, Srinivasan said that the price of BTC would reach $ 1 million within 90 days due to hyperinflation in the United States. on March 17, he made a bet on Twitter with Democrat James Medlock — according to the terms of the bet, Medlock would win $ 1 million in USD Coin (USDC) stablecoin and 1 BTC if BTC did not reach $ 1 million by June 17. Otherwise, the assets will go to the former CTO of Coinbase.

The scenario in which BTC completely replaces the US dollar does not seem particularly realistic at the moment. However, there are clear signs that the US dollar is weakening against other currencies. The US dollar index has fallen by 8.9% over the past 6 months and has lost 1.34% of its value over the past year.

USDX measures the value of the US dollar against a basket of other major fiat currencies. Its decline indicates that the dollar is losing value. This is due to fears of a recession due to the Fed’s interest rate hike and the recent collapse of major US banks.

Bitcoin, meanwhile, is gathering strength: over the past 6 months, the main cryptocurrency has risen by 46.18%, and over the year — by 65.54%.