The upcoming year will be more like 2017 for bitcoin (EXANTE: Bitcoin), according to Fundstrat's Head of Research Tom Lee. In a recent interview with CNBC, Lee believes that bitcoin "should do even better in 2021 than it did in 2020," adding that the cryptocurrency might experience a 300% return.
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The US dollar's weakness will make people think on how to save money in alternative assets. The digital generation considers bitcoin as a true digital asset, Lee emphasizes. However, Fundstrat's Lee thinks the cryptocurrency's base is still not so large to compete with the traditional financial market.
"Bitcoin's holder base is still tiny. I do not think there is even really more than a million real people that own bitcoin, compare to nearly a billion people that own other financial instruments," Lee added.
Ripple CEO Brad Garlinghouse doubts that the US dollar as the world’s reserve currency will disappear in favor of crypto or other asset any time soon. Garlinghouse agrees that the US dollar is currently weaker than before the coronavirus-related crisis began, however, the dollar has been the backbone of global financial infra, and"that position is not going to disappear any time soon."
David Roche, President and Global Strategist at Independent Strategy, points out that despite the currency's weakening, China will not challenge the US dollar’s status as a reserve currency even with the digital yuan. Roche said that China's digital currency will not make any difference in short-term perspective as the US dollar will remain with its status for a while.
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