Bitcoin Will ‘Replace The U.S. Dollar’—Jack Dorsey Made A Radical Prediction As The Price Suddenly Surges, Boosting Ethereum

Former Twitter CEO Jack Dorsey, who recently quit the social media giant he co-founded to grow his payments company, has predicted that Bitcoin will eventually replace the US dollar.

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The price of Bitcoin, after rising over the past 12 months, has fallen in recent weeks, losing more than 30% of its value in just over a month. The recent crash in the bitcoin price has also affected the price of Ethereum, which is down around 20%.

Bitcoin jumped higher shortly after Dorsey’s tweet, reversing the downtrend over the past few days that added 5% to the price of Bitcoin over the past 24 hours and boosted the price of Ethereum and the broader crypto market.

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Dorsey, in response to rapper Cardi B on Twitter – who asked “Do you think cryptocurrency will replace the dollar?” –replied: “Yes, will bitcoin.”

Earlier this month, Dorsey left Twitter to start a full-time job at his payments company, recently renamed Block, which includes Square and Cash.

Dorsey has been a bitcoin believer for years, often speaking about bitcoin’s prospects in interviews and bringing up bitcoin-based services on both Twitter and Square. Dorsey has appointed Parag Agrawal as the new CEO of Twitter, and was previously the company’s chief technology officer who was heavily involved in decentralized technology projects on Twitter.

“If I hadn’t been on Square or Twitter, I would have been working on Bitcoin,” Dorsey said at the Miami Bitcoin Conference in June. At the time, he said, “Both companies have a role to play.”

In August, Dorsey chirp That “Bitcoin Will Unite a Deeply Divided Country” and “Eventually [the] Globalism.”

Anticipating bitcoin, Dorsey joined forces with Tesla CEO Elon Musk in mocking the idea of ​​a crypto-based Web3, which aims to be the successor to the Silicon Valley-based Web 2.0 that led to the Internet’s dominance over Google, Facebook and Microsoft and Amazon.

“Has anyone seen Web 3? I can’t find it,” Musk chirp, with Dorsey responding: “It’s somewhere between a and z”—I thought it was a reference to tech venture capital (VC) Andreessen Horowitz, which recently invested billions in web3 development.

“You don’t own ‘web3,'” Dorsey chirp. Venture capital and [limited partners] Act. You will never escape their urge. It is, after all, a central entity with a different name. Know what you’re getting into.”

The Web3 hype has been fueled this year by the price hikes of some cryptocurrencies and non-fungible tokens (NFTs) designed to support its growth and the rebranding of Facebook to Meta.

“Just like NFTs, web3 platforms and metaverse platforms are the next natural progression in how we interact, connect, and communicate with each other,” Mark Zuckerberg, CEO of Meta, said in an interview last month.

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Bitcoin, which was created just over a decade ago in response to the 2008 global financial crisis, has found a niche as “digital gold,” a rare and decentralized digital asset that some investors and even companies and countries have begun to hold as a store of value and a hedge against inflation and risk.

Last year, famed investor Paul Tudor Jones opened the floodgates for investors when he called bitcoin the “fastest horse to beat” the inflation he saw on the horizon as a result of the Covid-19 pandemic and the printing of massive government money.

Meanwhile, business intelligence software company MicroStrategy began adding bitcoin to its balance sheet, which led to Elon Musk’s electric car company Tesla buying $1.5 billion worth of bitcoin in January 2021. This year, El Salvador adopted bitcoin as its national currency. Besides the US dollar and started buying bitcoin.

All of this has helped lift the bitcoin price from a low of around $4,000 per bitcoin in March 2020 to a high of $69,000 last month. Although the massive rise in the price of bitcoin has been outweighed by the gains of other smaller cryptocurrencies including ethereum and a handful of ethereum competitors, as well as so-called memecoins such as dogecoin and shiba inu.

Last month, Hillary Clinton, the former US presidential candidate and Secretary of State under President Barack Obama, warned that the rise of bitcoin and cryptocurrencies could undermine the dollar’s reserve position.

However, others do not see Bitcoin as replacing the dollar and other government-backed currencies.

“I think the whole conversation about bitcoin or any cryptocurrency replacing fiat is counterproductive,” tech investor Mark Cuban said last year.