Asked by the world-famous singer Cardi B whether cryptocurrencies will replace the dollar, Twitter founder Jack Dorsey replied, “Yes, Bitcoin will do that.”
Bitcoin (BTC) and crypto markets, which have attracted the attention of the whole world by developing the highest price levels in history after 2020, continue to be seen as an alternative to traditional markets. The dollar-BTC debate, which flared up especially when the DeFi trend started, has been on the agenda again in recent days. Former Twitter CEO Jack Dorsey is one of those who support this view.
Can Bitcoin replace the dollar?
The world-famous singer Cardi B asked on her social media account, “Do you think cryptocurrencies can replace the dollar?” To the question, “Yes, he will get Bitcoin.” said Jack Dorsey, rekindling the old debate in the community. In the past, the comparison of Bitcoin to gold and the rhetoric that it would replace the dollar was also on the agenda, and there were discussions about how this would happen.
Yes, Bitcoin will— jack⚡️ (@jack) December 21, 2021
Bitcoin has recently been used as a payment method in many places. This is considered an important metric for cryptocurrencies and whether Bitcoin can replace the dollar. Still, the wide usage area of the dollar brings with it criticism whether Bitcoin can handle so many transactions.
Cryptocurrencies used as payment system
Apart from Bitcoin, some altcoins have also taken their place in traditional markets as payment methods. It is known that giant companies such as Visa have taken important steps in this regard. It is thought that instead of Bitcoin, the coins of other blockchain projects can be preferred in these payment methods together with new technologies.
Cryptocurrencies, which are currently cold to be used by states as a payment method, have recently started to be accepted in many countries, especially the USA. El Salvador's adoption of Bitcoin as legal tender was also the embodiment of Bitcoin and dollar comparisons. Although experts see the potential of Bitcoin and cryptocurrencies as high for now, the regulations that may come in the process seem to clarify the situation.
Alternative to central bank digital currencies
One of the pillars of the discussions that cryptocurrencies and Bitcoin will replace the dollar is undoubtedly CBDCs. These assets, called Central Bank Digital Currencies, are an area where infrastructure work is accelerating in many countries around the world. While it is known that the digital dollar is also overtaken by US policy-makers, it is also commented that cryptocurrencies will remain as an alternative.
On the other hand, the crypto money and Bitcoin bans brought by China after the digital yuan studies also reveal the thesis that cryptocurrencies and digital currencies are seen as competitors rather than alternatives. Still, China's tough stance has not been adopted by western countries for the time being. This may mean that cryptocurrencies and Bitcoin will continue to be alternatives in the coming period. Stocks and cryptocurrencies, which are another comparison, seem to be a hot topic of discussion with the interest shown by the actors in traditional stock markets for now.
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