- The conversion of cash to Bitcoin is a threat to traditional currencies.
- The U.S. may impose a ban on cryptocurrencies if a threat is seen.
Recently, the rate of Bitcoin investments in the U.S. has become increasingly worrying for its administration, with reports suggesting that a decision to ban the use of cryptocurrencies may arise. A famous analyst in the U.S. said that the government might have no option other than to regulate the digital currency once seen as a threat to the nation’s fiat currency, the dollar.
Bitcoin investments dominating markets
After Elon Musk’s Dogecoin tweets, Tesla is the recent top name to show interest in cryptocurrency. Presently, Tesla’s Bitcoin purchase is topping the charts as per Bitcoin investments. Now, every crypto investor is looking to convert cash into BTC. However, the cash conversion may have a negative effect on the value of the dollar.
Last year, an analyst from JP Morgan spoke about Bitcoin investments. He claimed Grayscale’s GBTC investment dominated Gold ETF distribution in two years, thereby predicting that Bitcoin’s value will dominate the digital market and Gold will only come close.
Bitcoin investments a real source of insurance for organizations
The recent investments in BTC by top companies like MicroStrategy and Tesla are a good source of insurance. However, these investments are threatening to destroy the value of the dollar. In contrast to the value of USD, Bitcoin is looking to hit $50000. If the trend of converting BTC to cash continues, the value of the dollar may yet decrease.
Presently, the value of BTC is rising at a high rate, and it is expected that the quality of Bitcoin investments will increase as well. Tesla’s BTC acquisition is just a start as the world should expect more companies to follow suit. With more billionaires looking to add Bitcoin to their portfolios, the fiat system may be at the brink of extinction. One question that persists will be when or if cryptocurrencies may eventually end the reign of fiat currencies.
Read more: Cryptopolitan