Brad Garlinghouse, the CEO of Ripple, tweeted what he thinks holds the future of the dollar and cryptocurrency. He believes the gradual depreciation of the dollar will help make alternative assets more popular.
“The pandemic is throwing so many game books out the window … yesterday’s action runs counter to decades of precedent. The signs point to further short-term dollar devaluation (leading to further asset diversification, which will certainly be good for crypto becomes ). ” Brad Garlinghouse on Twitter
By changing long-term strategies, Mr. Garlinghouse was referring to the Fed’s new policy of keeping interest rates and moderate inflation low in subsequent years in order to stimulate the economy. This will cause the dollar to weaken, according to Garlinghouse, which will pave the way for other assets, including cryptocurrency.
Recently, the dollar has been under constant pressure, which serves as an added incentive for the price of defensive assets such as gold or cryptocurrencies to rise. At the same time, the correlation between the two active assets only increased during the crisis. Also recently, Max Keizer stated that cryptocurrency and gold have a common enemy in the face of the dollar.