The dollar hegemony may soon meet a “frightening” end, said analyst Dick Bove. (TaxRebate.org.uk/Flickr)
Longtime Analyst Bove Says Cryptocurrency Is One Challenge to Dollar’s Dominance
The long-existing, U.S. dollar-ruled financial system could come to an end amid challenges from a potential multiple-currency system, which includes digital currencies, according to an Aug. 14 research note by Dick Bove, noted senior research analyst at Odeon Capital Group LLC, a New York City-based investment bank.
- “The new currencies might be paper, metal or digital impulses,” Bove wrote. “The possibility of this happening can only be described as frightening, yet the probability is quite high.”
- This possible change to the world’s financial system was brought up after prices on gold and other precious metals moved higher.
- The U.S. dollar has also been under attack from a number of flanks, such as China and Russia pushing for the renminbi to replace the dollar in international trade, as well as the rapid growth of the U.S. money supply.
- Bove, who’s been a Wall Street analyst for five decades, noted the recent bitcoin rally while discussing cryptocurrencies as an alternative to the dollar, saying, “Anything can be used as a currency as long as enough people will accept it.”
- Yet, Bove concluded that, for now, gold is “a clear option” for investors to consider to protect themselves from the rising risks to the dollar system.
Disclosure
The leader in blockchain news, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups.
https://www.coindesk.com/bove-says-dollars-dominance-challenges-include-cryptocurrency
