Despite the growing popularity of cryptocurrencies, Solomon believes that BTC is not a threat to the US Dollar.
Solomon’s statement comes at a time when digital currencies are becoming more mainstream, with many investors seeing Bitcoin as a store of value and hedge against inflation.
Solomon: Bitcoin Can’t Compete with the US Dollar
From his words, it can be inferred that Solomon argues that the US Dollar remains the backbone of the global financial system. He pointed out that for BTC to truly challenge the Dollar, the world “needs to change”. This means that Bitcoin would need to achieve widespread adoption and overcome significant hurdles.
Solomon also noted that Bitcoin’s volatility is a major barrier to its widespread use as a currency. This kind of unpredictability makes Bitcoin unsuitable for everyday transactions, further cementing the Dollar’s dominant position.
JUST IN: 🇺🇸 Goldman Sachs CEO Solomon says, “I don’t see Bitcoin as a threat to the US Dollar.” pic.twitter.com/wYNn634meW
— Bitcoin Magazine (@BitcoinMagazine) January 22, 2025
In Solomon’s view, BTC should be seen more as an asset class rather than a challenger to the US Dollar. Despite its rise in value, he’s sticking to the belief that it won’t replace traditional currencies or disrupt global financial systems. His comments are a reminder that, while Bitcoin may be making waves in the investment world, it has a long way to go before it can truly compete with the stability of the US Dollar.
More About Banks & Bitcoin
The governor of South Africa’s central bank recently dismissed the idea of holding Bitcoin as part of a strategic Bitcoin reserve. He asked: “Why not a strategic beef reserve? Why not an apple reserve? Why Bitcoin?” His comments reflect skepticism about Bitcoin’s value and its potential as a reserve asset. Particularly compared to traditional holdings like gold or foreign currencies.
The governor of the South African central bank scoffs at the idea of a strategic Bitcoin reserve asking, “Why not a strategic beef reserve? Why not an apple reserve? Why Bitcoin?!”
Brian Armstrong responds: pic.twitter.com/36LXDUxP5g
— Sam Callahan (@samcallah) January 21, 2025
In response, Brian Armstrong, CEO of Coinbase, argued that Bitcoin offers superior qualities as a form of money compared to gold. He pointed out that Bitcoin is scarce, portable, divisible, and has higher utility, which gives it advantages over traditional assets. Armstrong also highlighted Bitcoin’s remarkable performance as an asset, outpacing gold in terms of returns. With its unique features and impressive track record, Armstrong believes Bitcoin is on track to become even more significant than gold in the future.
Disclaimer
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