Macroeconomic drivers, including a decline in the US dollar (USD), attenuate the impact of the Bitcoin (BTC) harving cycle, the source of the market boom and bust that has been characterized by BTC since 2009, according to investors and founding partners at Venture Capital (VC) company Draper Associates, Tim Draper.
“The dollar will be extinct in 10-20 years from now,” Draper told Cointelgraf in an interview. “The world is changing and we see it happen. We are at the heart of anthropological leap,” he added.
Draper said investors increasingly view Bitcoin as a “escape valve” against poor governance, mistrust in banking institutions, Fiat currency inflation and geopolitical tensions. VC has been added:
“Halvings may be less effective when Bitcoin runs against the dollar, as Bitcoin is likely to go for a long time. It could be affected in some way by that four-year cycle, but I think the effect will diminish.
I think there is a macro driver that pushes Bitcoin. I think macro drivers will be a bigger deal than Halving,” continued the VC.
Like Seamus Rocca, CEO of Xapo Bank, the potential disruption in the four-year market cycle continues to be debated, with the four-year cycle still not dead, and some say BTC has matured into macroeconomic assets that have flowed traditional market dynamics.
https://www.youtube.com/watch?v=0BX9ALZW1UI
Related: Bitcoin Smack Dub in the middle of the adoption curve: Fidelity Analyst
Bitcoin and hard money alternatives are positioned to benefit from the decline of USD
In February, Bitwise analyst Jeff Park predicted that Bitcoin would appreciate its value and win global adoption with rising geopolitical tensions, currency inflation, a decline in the US dollar and a revival of protectionist trade policy.
The Trump administration has repeatedly stated that dollar-controlled stubcoins are central to maintaining the dollar’s global reserve. By placing dollars on the blockchain rail, anyone with a mobile phone and crypto wallet can add demand for US dollars.
But Bitcoin maximalist Max Kaiser claims that USD stubcoin is a temporary solution to the dollar’s decline and competes with gold-backed tokens and BTC.
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