US Government Will Not Allow Companies to Replace Dollars With Bitcoin

Dan Nathan, founder of Risk Reversal Advisors, said the US government would not continue to allow companies like Elon Musk’s Tesla to replace dollars with bitcoin. They will not “let the dollar fall from the world’s reserve currency,” which could happen if companies continued to replace the dollars on their balance sheets with bitcoins.

US Government Won’t Let Bitcoin Replace the Dollar, Says Chief Risk Reversal Advisor

Dan Nathan offered his views on the future of bitcoin in an interview with CNBC last week. His comments follow news of Tesla’s Elon Musk investing $1.5 billion in bitcoin and plans to allow cryptocurrency as a form of payment for its products in the near future.

Nathan is the head of Risk Reversal Advisors, which offers advisory services to investment banks, investment advisors and private companies. He spent the late 1990s and 2000s as an equity and options trader at hedge funds SAC, Exis, Cheyne Capital, and in the equity derivatives group Merrill Lynch.

He began by asserting that “the US Treasury and US government” will not “let this thing spiral out of control where literally companies start replacing dollars for the most part” with bitcoin. When asked specifically what regulators can do to stop companies putting bitcoin on their balance sheets like Tesla did, Nathan exclaimed:

They can arrange it. That’s what they can do.

He added: “We’ve seen that. We have seen it to some extent. The founder of Risk Reversal Advisors asserts, “I’m just telling you” that they are not “going to let the dollar fall from the world’s reserve currency”, stressing that this is exactly what is happening with companies increasingly replacing the dollar with bitcoin.

Nathan continued: “Right now, we are in a bit of euphoria,” adding that Tesla and bitcoin as “Two risky assets that have earned over a trillion dollars combined in the last six months and are all based on hopium. ”

The adviser further argues: “All these people, who make a lot of money on these two things, just understand that there must be some kind of gravity persisting at some point, and the combination of the two results in, I think, a very difficult situation if the two start going down together- the same, and the ripple effects that we’re going to see in currency markets, financial markets, and the like, can be pretty good. Nobody talks about it now. No more naysayers in bitcoin. ”

Following Tesla’s BTC investment, analysts predict that a flood of companies will do the same and put bitcoin on their balance sheets. Twitter Inc. have said that they are considering adding bitcoin as a cash reserve and paying employees and vendors in cryptocurrencies.

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