The US dollar has maintained hegemony over global markets as the world’s currency reserve largely due to the strength and dominance of the US economy.
Market commentators have analysed that the US dollar is losing its grip over global market share and over time would be replaced by a decentralized currency.
One of the reasons for such a forecast is the shift in power dynamics in relation to geo-economics and geopolitics that could affect the way value of goods and services is exchanged across the globe.
Keiser Report forecast for 2019
Max Keiser, the popular American broadcaster and host of the Keiser Report, has predicted that 2019 would see a gradual rise of alternative platforms for trading in global financial markets as the world moves towards a ‘de-globalized’ and ‘de-dollarised’ global economy.
Regarding the Belgium-based SWIFT payment system, Max Keiser says SWIFT is practically controlled by the US giving them an advantage as to which countries and institutions can and cannot use the system.
The SWIFT system is used by banks and other financial institutions to quickly send and receive information and transfer money through a standardized system of codes. However, a number of countries such as Germany are coming up with alternative transaction systems due to the overwhelming control of political power.
Predictions about Bitcoin
While discussing on length about market turnovers with Stacy Herbert, about cryptocurrency Keiser says Bitcoin has a ‘rock-solid monetary policy in the world’ because it does not necessarily depend upon the price but factors upon the ‘ten-minute emission rate’ of Bitcoin which is never changing.
He further makes claims that Bitcoin is capable of challenging central banks because the blockchain is based on mathematical calculation with new blocks being added every ten minutes, making it decentralized and less likely to be manipulated unlike the monetary policies of central banks.
Keiser says that the poor performance of the US stock market is pushing for crypto digital investment as cryptocurrencies are increasingly being seen as ‘alternative long-term value storage’ instead of stocks.
According to Keiser:
“A replacement to (SWIFT) begins the end of the US dollar hegemony. Bitcoin also emerged in 2009 and that is starting to take over and get bigger despite the price crash.”
Although the price of Bitcoin does not look promising as it is predicted to fall close to a $1000, Keiser is optimistic about Bitcoin going bullish in the long run.
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