The muscle power of the dollar in the global economic market gives the U.S. the superpower status it enjoys. The dollar has been conveniently agreed upon to be unbeatable. Today, most of the major global trades are conducted over the terms of dollars. The value of the currency has always enjoyed an all-time high for the vast majority.
With the landfall of the cryptocurrency, little did it concern the financial lawmakers. The U.S. government and the national treasury always treated the currency like just another trend. Gradually it picked up in the market and garnered few enthusiasts of bitcoin. Bitcoin slowly gained popularity, and the U.S. suddenly saw many of its citizens being actively part of the new digital monetary revolution.
President Trump has earlier even stated that he is not a big fan of cryptocurrency and labeled it as “thin air.” The government and its associates from the very beginning have not been much hopeful of the currency. Bitcoins, however, are considered as decentralized digital currency as per laws. The main reason why bitcoin has fared well in the game is the peer-to-peer transaction concept dating back to the Silicon Valley disruption. It is within the sentiments of the US citizens who have accepted the IT revolution, changing the face of the world.
The strain on the dollar is now quite witnessed. Many cryptocurrency enthusiasts have predicted that a global cryptocurrency would suffice to choke the dollar’s absolute value. As dealing with bitcoins is absolutely digital, it is at ease wherever there is availability of the internet. The support of the algorithmic arrangement of money all over the world through blockchain has made this version of digital currency quite a hit. People are now realizing the many benefits that bitcoins and other altcoins have over fiat currencies.
This potential threat to the dollar has raised significant concerns for the U.S. authorities. In his budget of 2020, Trump has also implemented some measures to keep a close watch on the cryptocurrencies. A Cryptocurrency Act 2020 regulated by FinCEN will be the frontline torchbearer for the same. Experts still predict that it will be of no use as, despite a decline in the price of bitcoin since 2017, it has maintained a loyal fanbase. Talks of having the dollar as a digital currency has come in the light as well. Such is the growing power of the undefiant bitcoin!