Dick Bove, senior research analyst at Odeon Capital, believes that the picture looks different regarding the future of the US currency. For him, the dominance of the dollar is in jeopardy and perhaps it is time for cryptomonies to take advantage.

The hegemony of the dollar seemed to prevail in the world, as practically the environment of the world economy has been governed by the American currency.

Since the global pandemic began, certain phenomena have occurred in the performance of the Dollar.

Since it began as a safe-haven currency against all the major currencies. As the months went by, the situation changed, and the Dollar began to plunge into a free fall.

Analysts are now looking at the USD’s performance in every respect. As many are beginning to consider that perhaps this is the time for other trading methods to take the lead.

What is the reason for the collapse of the dollar?

The dollar-dominated financial system could come to an end
For Dick Bove, the long-standing financial system, governed by U.S. dollars, could come to an end amid the challenges of the current system, providing the possibility of a multi-currency system being implemented.

The most relevant aspect of his analysis is that, beyond pointing to other currencies as a safe substitute for the dollar, his vision focuses on the need for digital currencies to be included in this new market structure that he envisions.

„The new currencies could be paper, metal or crypt coins,“ wrote Bove. „The possibility of this happening can only be described as frightening to many analysts and investors, but the probability is quite high, as the system requires it, since the dominance of the dollar is in danger.

This possible change in the global financial system came after the prices of gold and other precious metals rose.

The new currencies that could dominate the market

To understand why the analyst Bove considers this possible future, where the dominance of the dollar is in danger at the global level, it is necessary to review the meaning of these variants.

In the case of the paper currency, it is a fictitious or figurative value, which necessarily circulates as currency. It basically fulfils the functions of a contract which, in the future, should give in return money or a payment of the obligations undertaken in the previous agreement between the parties.

Cash, on the other hand, is commonly known as currency. It is one of the first instruments that were created to facilitate trade. The most commonly traded metal coins are silver and gold.

One of the main advantages that coins offered was that they contained an intrinsic value because of the metal they were made of. And today, you can see how gold is still a safe-haven asset for many investors and companies.

So-called „digital impulses“ are nothing more than cryptosystems. For Bove, the future of this new financial system will be based on crypto-currencies, as the dominance of the dollar is in danger.

Winklevoss Brothers Settle Bitcoin vs.

Will the future really undergo so many changes?
I don’t really know if the dollar will ever drop so low that all these currencies will replace it. However, the recent behavior of the currency is a warning sign, according to Dick Bove.

The U.S. dollar has also been attacked from various quarters, such as China and Russia, pressing for the renminbi to replace the dollar in international trade, as well as the rapid growth of the U.S. money supply.

Bove, who has been a Wall Street analyst for five decades, pointed to Bitcoin’s recent surge as he discussed crypto currencies as an alternative to the dollar. He said, „Anything can be used as currency as long as people accept it, and around the world.

However, Bove concluded that, for now, gold is „a clear choice“ that investors should consider in order to protect themselves from the growing risks to the dollar system.

Do you think this will be the future of the global financial system