Experts note that the rate of US dollars in the US economy has fallen to a record low. With a decrease in the circulation of funds, which are reflected in the monetary aggregate M2 (cash, money on demand, and payroll accounts), the economy begins to slide into an even greater depression.
There is simply no way out of such an economic situation without a large devaluation. Consumers stop responding to lower interest rates on loans, and companies abandon development, as a “caution funnel” arises when money is accumulated more and more.
At the same time, the US dollar doesn’t suit Americans as a store of value when inflation begins to rise. The US Federal Reserve has already doubled its annual inflation target, to 4%. This is what ultimately leads to the fact that the “caution funnel” makes Bitcoin more attractive. The central bank is trying to boost the economy by printing more and more US dollars, but they are getting less into the real economic circulation. And since such emission causes inflationary risks, people try to get rid of the American currency.
Surely, American consumers have alternatives, since theoretically a wide range of assets can rise in price with a possible devaluation of the US dollar. The securities of the companies with the business model of work over the internet will mainly grow.
Speaking about gold, it is still capable of losing to bitcoin in terms of “rarity”. The cryptocurrency has a guaranteed mechanism for confirming its limitations, backed up by halving, which the precious metal cannot boast of. At the same time, one should expect that bitcoin will reflect various market opinions, hence there will be high volatility in it, which does not change the general vector for growth.