Ruchir Sharma, president of Rockefeller International, spoke again about the great opportunity that Bitcoin has at hand: to replace the dollar and be the next dominant currency in the world. However, for this to occur, BTC needs to mature and rid itself of its volatility. His statement is based on history. Over the past six centuries, six coins have towered over the others, each reigning for around 100 years. However, as the dollar may be at the end of its cycle, there is no clear successor waiting for this throne. Regarding the drops, as much as they shake the confidence of some investors, Sharma tells CoinDesk that they are necessary for the strengthening of good assets. As an example, he compared Bitcoin to Amazon, a company that suffered huge losses during the dot-com bubble and is now one of the largest in the world.
Dollar reign may be at an end and Bitcoin will be the successor
Over the past six centuries, only six currencies have dominated the financial market. Their stories are very similar: there is a period of accumulation before it becomes dominant and then, after an average of 100 years, another takes its place.
Dominance of coins as a store of value in the last six centuries. Source: Twitter/Reproduction. For Ruchir Sharma, president of Rockefeller International, the dollar era may be coming to an end. After all, the currency has been occupying this “position” for more than 100 years. Another point that could indicate the end of the dollar is the excesses of recent years, which can be seen in the amount of money issued, undermining investor confidence.
Dollar monetary aggregate M2. Source: Reproduction. The big question is that there doesn’t seem to be any other ready to occupy this throne. With this, Bitcoin has a unique opportunity in its history. In addition to already being in a period of accumulation since 2009, when created, nothing seems more perfect than a global currency, decentralized and without the impact of state printers. However, for Bitcoin to reach this peak, Sharma recalls that BTC needs to mature and lose one of its most remembered characteristics, volatility.
“There is a need to have another currency, with a transactional need, and also a more stable currency,” declares Ruchir Sharma, president of Rockefeller to Coindesk. “There cannot be as much volatility and speculative interest in something that will be used for transactions.”
“This ‘easy money craze’ has been a disservice to the Bitcoin cause, but I believe that 3-5 years from now, Bitcoin will emerge as a more stable asset.”
Bitcoin will rise again, but it may take time
Citing the drop in both equities and Bitcoin itself, Ruchir points out that the rest of the year will still be a challenge due to investor fear, especially for high-risk assets. However, he points out that these will be attractive again in the future.
“Prices fall, but not in a straight line. They fall, there are jumps, pauses, and then a second fall. I suspect that’s what we’ll see in US markets, and risk markets in general.”
“Therefore, I am not yet ready to buy Bitcoin and cryptocurrencies as the US regime during the bear market drives risk appetite around the world.”
Finally, the president of Rockefeller International compares Bitcoin to Amazon, a company that, even after losing much of its value during the internet bubble, became one of the five giants in the world.
