Bloomberg TV: Bitcoin made people trust digital currencies 09.04.2021

Bitcoin made people trust digital currencies – Bloomberg (bloombergtv.bg)

The world has moved towards digitization and what happened around Bitcoin made people believe in digital currency and digital payment methods and when the time comes to launch such a currency, people will more easily accept it. This was stated by Yordan Micikulev, founder of Rodopa Capital, in the program “In Development” with presenter Veronika Denisova.

According to Micikulev, if China manages to make the best quality payment system, which is both centralized and not so centralized, and people can safely shop, maybe the country will make a lot of progress in the fight in this market.

The guest still emphasized that people trust the dollar.

“The fiat system has one huge problem. The dominant reserve currency has the ability to print as much money as it wants.”

“Foreign exchange reserves directly influence the capital markets because they allow the countries that own them to guarantee the stability of their national currency,” explained Yordan Micikulev. He added that China, which holds the largest reserve of US dollars ($3.3 trillion), is interested in the expensive dollar and the cheap yuan. And hypothetically – it can manipulate the market because it is the main player.

“But it is unlikely that China would release a large amount of dollars. In addition to the dollar reserve, China also owns a large part of America’s foreign debt. Currently, it is about 28 trillion dollars, and with a GDP of 21 trillion, the difference is large.”

Therefore, despite the trade war between the two countries, the currency markets are unaffected. The six Asian countries that hold the US dollar’s main reserves are producers and rely on the greenback to guarantee trade. In terms of gold reserves, the dominant powers for decades have been America and Germany, and China and Russia intervened only in 2008. In 10-15 years, both countries may occupy dominant positions, predicts Micikulev.