Bitcoin instead of gold? That's a possibility according to a Bloomberg analyst
Bitcoin instead of gold? That's a possibility according to a Bloomberg analyst Bitcoin instead of gold? That's a possibility according to a Bloomberg analyst

During the conference “Bretton Woods: The Realignment”, which was attended by economists, analysts and investors, Bitcoin was discussed. According to one Bloomberg analyst, the oldest cryptocurrency can replace gold.

Mike McGlone (senior commodities strategist at Bloomberg Intelligence), in his comment summing up the three-day conference, admitted that despite attempts by US regulators to limit Bitcoin’s development, it is gradually replacing gold bullion.

Conference in Bretton Woods

The said conference was held at the Bretton Woods Hotel in New Hampshire. It was attended by macroeconomic analysts, economists and investors. The place where the conference was held is not accidental. It was here in 1944 that delegates from 44 countries established the Bretton Woods system. It required each country to maintain a one percent fluctuation band. In addition to this (at least in theory), the idea was that the exchange rates of all countries adhering to the Bretton Woods system would be based on gold, thus preventing conflict.

However, it soon became clear that one currency (the US dollar) had the strongest position. In addition, due to more and more money being printed, the USA could no longer stick to the fixed exchange rate (1 ounce of gold was supposed to cost 35 dollars). Because of the growing inflation, the President of the United States Richard Nixon “temporarily” suspended the convertibility of the dollar into gold on August 15, 1971. Interestingly, some economists consider this to be the right decision.

According to McGlone, Bitcoin could end the reign of the US dollar and become a new global reserve asset. Importantly, according to the Bloomberg Intelligence strategist, this process has already begun. In a Twitter post(@mikemcglone11) summarizing the conference, he wrote: the digitization of money and finance is happening quickly and organically, the dollar maintains its dominance, Bitcoin is replacing gold, and U.S. regulation should not interfere with its growth.

“#Digitalization of money and finance is happening rapidly and organically, the #dollar is gaining dominance, #Bitcoin is replacing gold and U.S. regulation is unlikely to disrupt its advance – these are our key takeaways from the #BrettonWoods: The Realignment conference.”

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