Bitcoin vs. US dollar: reviving the idea of cryptocurrency as an alternative

Bitcoin vs. US dollar: reviving the idea of cryptocurrency as an alternative

In recent weeks, new trends have emerged in the financial markets that could have far-reaching implications for the future of the monetary system. Analysts are increasingly considering whether Bitcoin could surpass the US dollar, especially in the wake of President Donald Trump's recent trade measures, which have raised concerns about the stability of traditional currencies.

Jeff Parks, head of alpha strategies at Bitwise Invest, voiced his opinion on the X platform, arguing that Bitcoin now has "a better chance of surviving over the dollar in our lifetime after today." These words confirm a growing feeling among investors that Bitcoin could be the alternative people will have to choose if they become increasingly disillusioned with traditional currencies.

Parks said his belief comes at a time when confidence in the US dollar and other foreign currencies is declining. Bitwise CEO Hunter Horsley agreed, pointing out that gold, usually considered a safe haven, has its drawbacks, such as transportation and storage issues. Bitcoin could thus be the only viable option for investors seeking stability.

The US dollar index, which measures its strength against other major currencies, has fallen 5.84% since the start of the year and is currently trading at 102.193. Many Wall Street analysts were wrong in expecting Trump's tariffs to strengthen the US dollar. Since Trump imposed a 10% tariff on all imports in recent days, followed by tougher reciprocal tariffs on trading partners, markets have been thrown into a state of uncertainty.

The uncertainty surrounding the tariffs and fears of a potential recession have contributed to the decline in both traditional and cryptocurrency markets. Bitcoin, which is currently priced around USD 76,301, has seen an 18.37% decline since the beginning of the year.

Saifedean Ammous, author of a book on Bitcoin, said on Platform X that America's problem lies in the overall global deficit caused by the uncontrolled printing of fiat money. According to him, we need to move to hard store of value such as Bitcoin or gold to ensure economic stability.

Ammous suggested that one solution could be to stop using US "shitcoins" and switch to a hard money standard, which could give Trump the trade surpluses he desires.

It is clear that Bitcoin and other cryptocurrencies are increasingly coming to the fore as potential alternatives to traditional currencies. As the situation develops, the question remains whether Bitcoin will become a real competitor to the US dollar, or whether traditional currencies will take off and regain investor confidence. But one thing is certain - the monetary environment is changing and investors should be prepared for new challenges.

*This is not an investment recommendation.

The Coingarage team