You are currently viewing Bitcoin, Nasdaq: “virtually zero chance that crypto will displace the US dollar”

A few hours ago, an article was published on the Nasdaq blog about Bitcoin and cryptocurrencies, explaining their pros and cons to a public that is still unfamiliar with the subject.

The article, whose title reads “Bitcoin and Crypto: Fraud or the Future?”, answers three questions, namely:

  • Is Bitcoin a Ponzi scheme?
  • Does Bitcoin threaten the U.S. dollar?
  • What is the most interesting aspect of Bitcoin for speculators?

Nasdaq has been listing Bitcoin-based funds for some time now, including 3iQ on the Nasdaq in Dubai. This obviously suggests that the team behind the stock exchange’s index is optimistic about Bitcoin and certainly doesn’t see it as a Ponzi scheme.

On the contrary, the author of the article suggests that the blockchain has many applications and that Proof of Work, which is the consensus method on which the technology behind Bitcoin is based, is what makes BTC secure and so, despite the detractors, it is obviously out of the question that this is a well-organised scam.

What is especially interesting, however, is the answer to the second question, when the author of the article explains that there is “virtually zero chance that crypto will displace the U.S. dollar”.

Rather, the article suggests that Bitcoin 

“is more properly viewed as competition for (or an adjunct to) gold. In fact, counterintuitively, we view Bitcoin as supportive of the U.S. dollar”.

Bitcoin and gold according to the Nasdaq

Referred to as “digital gold”, this is certainly not the first time someone has compared Bitcoin to gold. But recently, an analysis by James Gard published on Morningstar, argued that the two assets could somehow coexist alongside each other for some time to come, co-existing within the financial system of the future.

Bitcoin regulation

Another interesting point in the article published on Nasdaq is also about regulation, explaining that appropriate regulation could facilitate the mass adoption of cryptocurrencies:

“Regulation may equal acceptance. It clears the path for institutional adoption. Bad regulation is a risk, but proper regulation could facilitate mass adoption”.

Finally, the report goes on to show how Bitcoin is an asset that is not correlated to the stock market or equity hedges.

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