Its “weakening” status as a safe haven now makes the dollar vulnerable to Bitcoin

A Deutsche Bank macro strategist has raised concerns that the dollar could lose its safe haven status if another wave of the pandemic strikes the United States. Should the current global reserve currency as an “emergency” currency be further weakened – could Bitcoin finally slip into this role?

 

Macro strategist questions dollar security

When the economy is in distress, certain assets known as safe havens for capital perform best and are traded at a premium. These assets include gold, the US dollar, the Japanese yen and the Swiss franc.Gold is an ideal example of this. The finite availability of the precious metal makes it a strong hedge against inflation. Bitcoin is also said to have similar properties due to its fixed offering of only 21 million BTC. When the dollar first decoupled from gold support in the 1970s, it was trading around $ 35 an ounce. Today, after 50 years of inflation, it is trading above $ 1,760.And although the dollar has ballooned over the years, it remains the global reserve currency. The nation’s currency has long been coveted and allows it to remain in a position of power.