Uncoinscidentally, several U.S. research powerhouses recently published similar tonality pieces showing, on one hand, that the U.S. dollar and several other top assets including Bitcoin are diverging apart in terms of their global acceptance rates.

This, VanEck adheres to its incredibly bullish long-term outlook for Bitcoin. The VanEck’s ETF and Mutual Fund Manager predicts Bitcoin reaching up to $4.8 million if it becomes the global reserve asset.

This theory is based on the idea that central banks may diversify their reserves. A VanEck analyst said, “Central banks are likely to change their reserve mix to the detriment of dollars (and euros and yen — note how amazingly similar this judgement to the one voiced by Goldman Sachs, below!) and the enhancement of something else, to one extent or another As a result, some central banks — and private actors — will be diversifying their reserves.”

Earlier in December last year, VanEck’s CEO Jan van Eck predicted crypto would be “the top theme of 2022 and present compelling areas of investment opportunity over the next few years” (https://www.vaneck.com/corp/en/news-and-insights/blogs/investment-outlook/2022-outlook-qa-crypto-inflation-and-energy-transition/), which was dicussed in the company’s last available investment outlook. “The transformational potential of each of these themes is immense and may be with us for the foreseeable future” – it added. Even more, “the crypto disruption expand across the financial system and expect this to continue”.

“The decentralized finance (DeFi) ecosystem is maturing and becoming a potential competitor to legacy financial intermediaries and global investment banks” – the report said. “2021 saw the first country, El Salvador, declaring Bitcoin as legal tender, and we would not be surprised to see another doing the same in 2022.The current geopolitical crisis has meant that Russia is already considering different currencies, including Bitcoin, to transact for oil with their friendly partners – China and Turkey”.

Source: CoinTelegraph

Banking giant Citi also announced an astounding prediction relating to the crypto market and Web 3. Citi released a Global Perspectives & Solutions (Citi GPS) report titled “Metaverse and Money: Decrypting the Future” (https://www.citivelocity.com/citigps/metaverse-and-money/) last week. This report predicted that the total market for the metaverse economy could grow to between $8 trillion and $13 trillion by 2030. Furthermore, they expect that the number of metaverse users could grow to up to 5 billion. This demonstrates the potential upside of being early in metaverse projects that are successful in capturing market share.

Goldman Sachs (GS), in its turn, recently wrote a research report (distributed commercially, but widely cited by online mass media) saying the U.S. dollar (DXY) risks becoming a lesser used currency like the UK pound (GBPUSD). The U.S.’ tough sanctions on Russia including a freeze of a large portion of the country’s foreign currency reserves have raised concerns prompting countries around the world to become keener to try to move away from the dollar. Goldman also said the U.S.’ foreign debts mean that foreign investors may become reluctant to hold dollar assets.

The bank’s analysts, including economist Cristina Tessari, said the dollar faces a number of challenges similar to those faced by the British pound at times of its imperial glory before it declined. The pound was once the world’s reserve currency, but was supplanted by the dollar after the Bretton Woods Accord paved the way for the US Dollar to become sole world’s reserve currency.

As a clear repercussion, last week Brazil’s central bank said it more than quadrupled its foreign reserves in Chinese yuan (CNYUSD) last year, as it trimmed holdings of U.S. dollars and euros and built Brazilian reserves of currency from its biggest trade partner. The Chinese currency, which until 2018 was absent from the forex reserves of Latin America’s largest economy, rose to 4.99% of Brazilian central bank holdings at the end of last year, from 1.21% at the end of 2020.

That gave it the third largest share of the central bank’s reserves, slightly behind the euro, which fell to 5.04% last year from 7.85% in 2020. Dollar reserves fell to 80.34% of the total from 86.03% a year earlier. Although the latter report did not explicitly mentioned Bitcoin as one of the apparent beneficiaries of decline of USD appeal among world governments, it is easy to assume that at least private use of Bitcoin is poised to remain growing at high pace.