Morgan Stanleyâ€™s chief global strategist says that â€œregardless of where the price of bitcoin goes next, cryptocurrencies are here to stay as a serious asset class.â€ He added that bitcoin is making progress towards replacing the dollar as a medium of exchange.
Morgan Stanley Bullish on Bitcoin and Cryptocurrencies
Morgan Stanleyâ€™s head of emerging markets and chief global strategist, Ruchir Sharma, published a report entitled â€œWhy Crypto Is Coming Out of the Shadowsâ€ on the Morgan Stanley website last week.
â€œDespite the jitters natural in a global pandemic, cryptocurrencies are rapidly gaining popular support as alternatives to gold (a store of value) and the dollar (as a means of payment),â€ he began. The strategist elaborated:
Sharma explained that one reason â€œis growing distrust in fiat currencies, thanks to massive money printing by central banks.â€ Another reason is â€œgenerational,â€ as young people view cryptocurrency as an improvement over metal coins. He continued: â€œThe worst knock on cryptocurrency as a store of value is its volatility, but unflinching demand from millennials has helped lower the volatility of bitcoin, even during the pandemic.â€
The strategist added that this age group believes â€œthe open-source software behind Bitcoin makes it more transparent, transferrable and trustworthy than paper money printed by governments.â€ He emphasized that â€œthis crypto-confidence may reach even deeper in emerging markets, where distrust in centralized authority runs high.â€ Sharma opined:
When the pandemic hit, the dollar was the worldâ€™s preferred reserve currency. However, â€œled by the Fed, every major central bank has been printing money madly to keep economies afloat during the pandemic, undermining confidence in all national currencies,â€ he described, adding that 20% of â€œall dollars in circulation were printed in 2020, and that binge was a huge boost to the appeal of bitcoin.â€
The Morgan Stanley strategist detailed:
â€œLast year popular payment platforms started accepting bitcoin and other digital currencies, a major step forward in their campaign to challenge the dollar,â€ he concluded.
Last week, it was also revealed that Elon Muskâ€™s Tesla will start accepting bitcoin as a means of payment for its products in the near future. Furthermore, Paypal and Mastercard are working to allow merchants on their networks to accept cryptocurrencies.
Do you agree with the Morgan Stanley strategist? Let us know in the comments section below.
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.