Contrary to what many in the crypto space are discussing, Senior Commodity Strategist for Bloomberg, Mike McGlone, has made the case for Bitcoin being beneficial for the U.S. dollar over China’s digital Yuan.
According to McGlone, the cryptocurrency is “eclipsing” Yuan’s global adoption. Specifically, the U.S. dollar is showing “organic adoption” in the digital ecosystem, as shown by the following chart. Mcglone claims:
Bitcoin May Enhance Dollar Dominance, Highlight China Drawbacks – Despite concerns about China’s development of a digital yuan, Bitcoin is enhancing the dollar’s dominance and is a risk to gold. Bitcoin may be accentuating the drawbacks of a lack of free markets & discourse.
Dollar’s Digital Dominance Eclipsing China Yuan Global Adoption – #Bitcoin going mainstream tops the crypto-market headlines in 2021, but the increasing dominance of the dollar is equally significant. Organic adoption of the world’s reserve currency in the digital ecosystem.. pic.twitter.com/MB3NfCaD9a
— Mike McGlone (@mikemcglone11) April 7, 2021
Institutions not adopting Bitcoin could be at risk
For Gold holders, the benchmark cryptocurrency has also become a nuisance. The precious metal is underperforming and retracing to levels of support under $1,700, as McGlone claims. He added:
most indicators show a shifting global tide that favors the nascent digital currency as a reserve asset.
The expert claims Bitcoin has “entered a unique state” in terms of adoption. Therefore, he claims those company managers and executives unwilling to allocate capital to BTC could be at risk of missing out on more appreciation.
In that regard, McGlone estimates BTC’s price to be on a similar path that in 2013 when it registered 55x gains and in 2017 when it reached the historical $20,000 mark. This would put Bitcoin near $400,000 this year. He added:
The technical outlook for Bitcoin in 2021 remains strongly upward, if past patterns repeat. Common companions for…