According to these experts, the increase in money creation by the regulator will result in higher costs of digital assets. Due to inflation expectations, potential investors are likely to hedge their risks in the most liquid cryptocurrencies such as Bitcoin and Ether.
Forbes journalists spoke to experts who warned that the attractiveness and stability of the US dollar has been steadily declining since the 2008 financial crisis, thanks to government spending and continuous growth in money supply. If the US dollar faces devaluation in 2024, as many believe, Bitcoin and other digital assets will emerge as a natural alternative to the national currency.
Former managing director of Goldman Sachs, Zach Pandl, shares the same opinion as the Forbes interviewees. Pandl considers military-technical cooperation as the only “obvious competitor” to the US dollar, particularly when the Federal Reserve restarts its money printing activities.
Meanwhile, Antoni Trenchev, co-founder of crypto lender Nexo, believes that crypto investors should not expect explosive growth in the short term. He emphasizes that the approval of a Bitcoin ETF by US authorities may not necessarily lead to an increase in BTC’s value, according to his forecast.