Will Bitcoin Undermine the US Dollar?

Bitcoin has seen multiple new ventures this year as it got adopted by Elon Musk in an official capacity and is being used by Tesla as a standard mode of payment. After some time, Elon Musk cut his ties with Bitcoin on the grounds of using too much fossil fuel for its mining which is dangerous for our environment. El Salvador adopted Bitcoin in an official capacity as a legal tender, and it remains the only country to do so to date.

To state a few other obvious aspects and accomplishments of Bitcoin and what it was able to pull this year, it reached a new all-time high of $6 K after multiple Bitcoin futures ETF got approved by the Securities and Exchange Commission. All these are wonderful achievements by Bitcoin, but it didn’t stop Hillary Clinton, the former Secretary of State, from voicing her concerns regarding Bitcoin and how it might undermine the US dollar reserve currency status. She says that taking up Bitcoin mining or crypto mining, for that matter, and mining new coins and then using them for the sake of trading is likely undermining the global value and acceptability of the dollar.

In doing so, nations could be destabilized, and markets plummeted, and by the looks of it, said Clinton that this thing is going to take a start from smaller nations and then get to the larger ones later. Her concerns are somewhat justified but not to their full potential. El Salvador did accept Bitcoin as a legal tender and has been introducing new exciting projects and deals to keep the engagement level of investors and people high with the flagship cryptocurrency. Why wouldn’t it do so? Bitcoin is literally a legal tender in El Salvador and part of its economic value and understanding.

El Salvador will Build Bitcoin-backed City

It might not be as bad as said by Hillary Clinton, but at the end of the day, if the dollar is swapped with the crypto then what remains of the digital and global trade and what specific fiat or digital asset is going to take its place? The president of El Salvador has announced amid Clinton’s comments regarding bitcoin that the country is planning to build a city that would be run primarily by Bitcoin-backed bonds. It seems that El Salvador will not back down on prioritizing Bitcoin and developing new projects around it.

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