Longtime Analyst Bove Says Cryptocurrency Is One Challenge to Dollar's Dominance

The noted analyst says a possible end to the U.S. dollar-ruled financial system is "frightening, yet the probability is quite high."

AccessTimeIconAug 14, 2020 at 5:19 p.m. UTC
Updated Sep 14, 2021 at 9:44 a.m. UTC

The long-existing, U.S. dollar-ruled financial system could come to an end amid challenges from a potential multiple-currency system, which includes digital currencies, according to an Aug. 14 research note by Dick Bove, noted senior research analyst at Odeon Capital Group LLC, a New York City-based investment bank.

  • “The new currencies might be paper, metal or digital impulses,” Bove wrote. “The possibility of this happening can only be described as frightening, yet the probability is quite high.”
  • This possible change to the world’s financial system was brought up after prices on gold and other precious metals moved higher.  
  • The U.S. dollar has also been under attack from a number of flanks, such as China and Russia pushing for the renminbi to replace the dollar in international trade, as well as the rapid growth of the U.S. money supply. 
  • Bove, who's been a Wall Street analyst for five decades, noted the recent bitcoin rally while discussing cryptocurrencies as an alternative to the dollar, saying,  “Anything can be used as a currency as long as enough people will accept it.”
  • Yet, Bove concluded that, for now, gold is “a clear option” for investors to consider to protect themselves from the rising risks to the dollar system.

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
CoinDesk - Unknown
June Was Bitcoin’s Worst Month Ever

Plus, European crypto regulation comes into view.

CoinDesk - Unknown
2
CoinDesk - Unknown
What Traders Are Saying About Bitcoin's Biggest Monthly Loss in 11 Years

Poor macroeconomic sentiment, fears of inflation and systemic risks from the crypto market pushed the cryptocurrency below 2017’s highs.

CoinDesk - Unknown
3
CoinDesk - Unknown
Three Arrows Capital Files for Bankruptcy in New York Tied to British Virgin Islands Proceeding

A British Virgin Islands court ordered Three Arrows' BVI branch into liquidation earlier this week.

CoinDesk - Unknown
4
CoinDesk - Unknown
Cosmos-Builder Ignite Cuts Headcount by More Than 50%, Ex-Employees Say

The reductions come amid a crypto market crash, and after the return of Ignite’s controversial ex-CEO.

CoinDesk - Unknown