According to the chief global strategist of Morgan Stanley, cryptocurrencies are here to stay as a serious asset class regardless of where the bitcoin price goes next.
A report was written by Ruchir Sharma, the head of emerging markets and chief global strategist of Morgan Stanley, titles “Why Crypto Is Coming Out of the Shadows” which appeared on their company website last week.
Sharma begins the article with:
“Despite the jitters natural in a global pandemic, cryptocurrencies are rapidly gaining popular support as alternatives to gold (a store of value) and the dollar (as a means of payment). We see fundamental reasons to believe that — regardless of where the price of bitcoin goes next — cryptocurrencies are here to stay as a serious asset class.”
One of the reasons for him to come out with such a statement is the growing distrust in fiat currencies, as a result of massive money printing by central banks.
“This crypto-confidence may reach even deeper in emerging markets, where distrust in centralized authority runs high,” Sharma added.
During the pandemic, the dollar became the world’s preferred reserve currency. However, led by the Fed, every major central bank has been printing money madly to keep economies afloat during the pandemic, undermining confidence in all national currencies.
“Today, virtually all bitcoins are held as an investment, not used to pay bills, but that is changing," he added.
Sharma concluded that popular payment platforms has begun to accept bitcoin and other digital currencies last year, which was a major step forward in their campaign to challenge the dollar.