Several aspects of everyday life have become digital, such as documents, classes, shopping, etc. And of course, this would be no different with banks. Following the movement of digital globalization, banks have become international and digital currencies are on the rise, such as Bitcoin.
In this context, economist Larry Lepard, founder and managing partner of Equity Management Associates, analyzed the future of the US currency, the dollar. According to him, the currency is expected to disappear in the next 10 years.
The digital currency is expected to enter a process of overvaluation, influencing the fall of the dollar and its eventual disappearance.
The Dollar’s ‘Armageddon’
On April 4th of this year, Larry gave an interview to Kitcoin which he warns about the collapse total dollar. Consequently, Lepard believes that this collapse will lead to the appreciation and a significant increase in the price of Bitcoin.
According to the economist, the current situation is very simple: over the decades, the dollar has been undergoing constant devaluation. The tendency is for this depreciation spiral to continue in this direction.
Lepard points out a series of factors that have contributed to the devaluation of the US currency. Among them are the high level of debt in the United States and the increasing printing of paper money by the Federal Reserve (the US central bank). These two variables generate inflation and reduce the purchasing power of the dollar.
The Rise of Bitcoin
So, with the increase in inflation and the reduction in the purchasing power of the dollar, the economist believes that Bitcoin is a more attractive alternative for investors. Due to its resistance to inflation, those who want to protect their assets may turn to it. cryptocurrency in these times of economic uncertainty.
This movement has been observed in recent months with the rise in the price of Bitcoin. This could be a sign that investors are already moving to protect themselves from the instability of the dollar.
