The over-reliance on the American dollar is something, which major countries over the world are warning against. Given the recent economic and trade crisis and America’s dominance on the world’s economics, the Dollar has always enjoyed a position of pre-eminence.
However, of late, countries like Russia, China, Turkey, Iran, and many others (including European countries) have realized that the supremacy of the dollar is very much against their national interest.
In addition to nations, the American people have actively looked at cryptocurrencies. According to a survey done by a crypto-based tech firm, millions of Americans are investing massively in Bitcoins and other cryptocurrencies.
In this article, we are going to examine why many Americans are looking at digital alternatives to the dollar.
Is the Dollar Losing Steam: What Experts are Saying?
For a very long time, America’s authority as the prime mover of the world economy has been called into question.
The supposedly inward-looking policies of the Trump administration, coupled with poor international relations have meant that America as an economic superpower has been on the decline.
This has increased unemployment rates, lower the mean income, and restricted social welfare, which was so instrumental in elevating America to a position of dominance.
The Pandemic crushed the American economy and resulted in the highest death and infection rates for any part of the world.
The American economy is in recession and the government has not done enough to protect the interests of the working community. Poorly managed business loans have resulted in widespread corruption throughout the country.
Why are Americans falling in love with Cryptocurrencies like Bitcoins?
This year has been exceptionally good for Bitcoin traders and investors. They have seen their profits hit sky-high, given the unreal growth seen by Bitcoin. While 2020 did not start well for cryptocurrencies and Bitcoin dropped to record lows at the start of the pandemic, it has bounced back handsomely.
It breached the $19K mark before the price correction has made it stabilize at $18,500 USD. Let us look at some of the reasons for the same-
- No jobs, inadequate government help, and poor economic prospects forced millions of Americans to scout for better income opportunities.
- Sitting at home, confined to the lockdown, most Americans relied on the internet to make them earn. Social media and search engines emerged as powerful platforms to educate and inform.
- Millions of them started reading on Cryptocurrencies are started investing little by little. Over the past eight months, they saw their meager investments grow five-folds and six-folds!
- They also started realizing that the government cannot be relied upon to help them during tough economic times. The historical background of Bitcoin as a financial asset born to protect the interests of the common man also appealed to them.
- According to this site, it was not only Americans but also people in different parts of the world, which started engaging with Bitcoins during the Coronavirus lockdown.
What are some Challenges preventing Bitcoins from becoming Mainstream?
In the same survey, like the one we have cited above, many respondents tried to answer the above question.
Some stated that Cryptocurrencies and Bitcoin are still too complicated to start becoming appealing to older audiences and investors. They said that proper education, information, and simplification can go a long way in helping this class understand how it works.
At present, the only group, which advocates literature on Bitcoins or the crypto ecosystem are the exchanges or trading platforms. It is essential that think tanks and social groups start advocating to build credibility and inspire confidence in the industry.
Bitcoin is not illegal, nor is it legal. It enjoys an ambiguous position that makes it less attractive for normal family savings and investments that prioritize safety over growth percentages. If the government formalizes the same as an investment asset, it will go a long way to help people adopt it.