Ruchir Sharma, Head of Strategy for Morgan Stanley said that the presence of Bitcoin for another type of crypto asset is an important warning to the government about the issue of unlimited fiat money.
"Bitcoin's price surge may still prove to be a bubble, but Bitcoin is a warning to any government, especially in the US that publishes an unlimited number of them," Sharma said in his article "Will bitcoin end the dollar's reign?" He wrote in the Financial Times. , 9 December 2020.
He also emphatically said that do not assume that your traditional currency is the only store of value, or medium of exchange, that people will trust.
"People who understand technology may not stop looking for alternatives until they find or create one," he said.
Sharma tries to convince the public that the traditional money issued by the state has failed.
He said US officials believed that, in response to the economic impact of COVID-19, they could issue an unlimited number of dollars without damaging the status of their reserve currency.
“But a new asset class as a competitor is emerging, namely cryptocurrencies that operate on peer-to-peer networks that are not regulated by any country. Crypto assets such as Bitcoin are democratic and decentralized alternative money, "he said.
