Ex-Coinbase CTO Claims US Dollar is No Longer Too Big to Fail, Touts Bitcoin

Coinbase former CTO Balaji Srinivasan said the US Dollar (USD) is not too big to fail and expects Bitcoin (BTC) to replace it as the global reserve currency.

Srinivasan pointed out that unlike in the past when investors have flocked to dollar-denominated assets during a time of stress, this is a different time. He noted that historical data shows that people exit devaluing currencies, which is where USD falls into.

“Dalio has a different definition of historical reserve currencies. He says it’s the US dollar, then before that the British pound, then before that the Dutch guilder. But the point remains that reserve currency status doesn’t last,” Balaji added.

He noted that this is the difference between 2008 and 2023 as USD no longer held its strong position. Balaji also suggested that the Chinese RMB could even replace the USD as the world reserve currency.

This continues his earlier views that Bitcoin could reach $1 million in 90 days as the US financial system suffers from hyperinflation. Meanwhile, many believe Balaji’s predicted changes take generations to happen, not 90 days.

US Dollar is Weakening

While not everyone believes BTC will replace USD, there are clear signs that the US dollar is weakening against other cryptocurrencies. The US Dollar Index is down 8.9% in the last 6 months and has lost 1.34% of its value in the past year.

USD Index YTD (Source: Yahoo Finance)

The USDX measures the value of the USD relative to a basket of other major fiat currencies, and its decline over the past 6 months suggests that the dollar is losing value. This decline is due to the fear of recession due to the Fed’s interest rate hike and the recent collapse of major U.S. banks.

Bitcoin Gains Strength

Meanwhile, Bitcoin has been gaining strength in recent months. The cryptocurrency is up 46.18% in the last 6 months and has increased by 65.54% on the year-to-date metrics, according to BeInCrypto data.

Bitcoin 24-Hour Price Performance (Source: BeInCrypto)

Interestingly, most of the BTC gains in recent weeks are attributed to trading in the US. Its performance has led some to push for higher Bitcoin prices and faster adoption. But experts believe that any growth in Bitcoin price is unlikely to reach levels predicted by believers in hyperbitcoinization.


BeInCrypto has reached out to company or individual involved in the story to get an official statement about the recent developments, but it has yet to hear back.

Bookmark (0)

Related Posts

Bitcoin: The Best Performing Asset Class in Q1 2023

Bitcoin set for its best trading quarter in nearly 2-years.
The top cryptocurrency vastly outpaces stocks performance.
BTC is well placed for more gains in Q2 2023.

Bookmark (0)

USDC Supply Shrinks by $10 Billion in March, But Hits 6-Month High on Smart Contracts

USDC supply declined by $10 billion in March following its exposure to the US banking crisis.
However, the stablecoin use on smart contracts reached a six-month high of 42.08%.
Tether USDT is now the dominant stablecoin, accounting for over 60% of the market.

Bookmark (0)

Bittrex Quits US, Cites Unfavorable Regulatory Environment

Crypto exchange Bittrex said it was leaving the United States because of the regulatory environment.
The crypto company had had previous skirmishes with financial regulator in the country.
Crypto stakeholders have warned that the US regulatory landscape would force many firms out of the country.

Bookmark (0)

Solana overcomes FTX fiasco — SOL price gains 100% in Q1

The cryptocurrency market may have overreacted to Solana’s FTX links and its tainted boss, Sam Bankman-Fried.

Bookmark (0)

Elon Musk requests dismissal of $258B Dogecoin lawsuit: Report

The plaintiff’s brought up Musk’s Saturday Night Live appearance in 2021, where he portrayed “a fictitious financial expert” and called Dogecoin “a hustle,” resulting in a steep price decline minutes later.

Bookmark (0)

Here’s how the crypto industry is using artificial intelligence

The rise of artificial intelligence, though in its early stages, has found use cases in crypto through countless projects.

Bookmark (0)

Leave a Reply

Your email address will not be published. Required fields are marked *