Topic: Bitcoin as a World Reserve Currency Could Help Bolster the US Dollar (Read 177 times)

Bitcoin to get termed to be the reserve currency of the world overcoming the USD is really a tough task to achieve. Bitcoin gets much benefited, if it gets importance to be the reserve. Any country trying to have supremacy over the growth of America will be suppressed by some tactics. This can be through war, other forms of trade restrictions, etc. By this time if there arises something that makes bitcoin to progress big as a reserve will be surely stopped by America.

Some one tried to replace US dollar with gold and we know what happened next in the middle East. I doubt the US government will let this happen. It is a brilliant Idea but why will the US government allow it. After all they are minting US dollar.

You know once everyone treated Gold as Reserve Currency and tried to tether every currency's value towards the value of GOLD before the Bretten Woods Confrence of 1944. But there were some inherent limitations of using this system as:
1. Countries could not create as much currency as possible.
2. Growing Industrialization required more money to flow in the economy to bolster Economic Growth.
3. Global Settlement was a bit clumsy as everyone first had to exchange currencies for gold.

Now, if gold was eliminated due to such reasons why do you think Bitcoin with similar inherent problems would be reinstated instead??
Similar to Gold it also:
1. Cannot be created infinitely.
2. No control over supply means no Money Injections possible in case of Economic slowdown.
3. Global Settlement would still be a problem.
So, I think this option is not possible

I don't know if US dollar will be benefited from this move or not, but bitcoin will definitely be benefited! The reason is very simple, the demand of bitcoin will increase while its supply remains the same! It's highly unlikely that any fiat currency will be benefited by this, not just USD!

But frankly, bitcoin network is simply not strong enough to scale up for worldwide use! We have seen a glimple of it in late 2017. The network will be congested and transaction fees will sky rocket! We are better as a parallel currency in a parallel economy!

most bitcoin holders may just sit quietly staring at the screen charts, they don't introduce and expand the bitcoin network so that it continues to expand, at least bitcoin will continue to get stronger and unstoppable until later, I want to share my thoughts I want to see the USD replaced with Bitcoin but unfortunately we not big enough to do that, if all countries use bitcoin or cryptocurrency with the same exchange rate unlike currencies, maybe there will be no more countries going bankrupt

As long as we want to, Bitcoin as of now can't handle being the reserve currency. Issues with scalability are still not resolved. The Bitcoin Network Core should improve its performance in terms of speed of transactions. Another thing is that its value is not backed by any real liquid asset, though US dollar is too, but the Government is sure to have gold reserves in case emergency economical crisis arises.

Let me know, in which part in Bitcoin what makes you think that it's better than USD for reserve currency?
For me before bitcoin should become reserve currency it should first be received in many sectors in the economy, currently Bitcoin only considered as an investment or commodity than the currency.
See at current situation look like it's still far away, but don't know in a year or more because now world change very fast in many sectors.

The United States would definitely want the USD to remain as the reserve currency of the world and wouldn't want to trade that for any other fiat or cryptocurrency. We saw that in how the US fought against Libya making gold their reserve currency. The power nations would engage in a tussle for control of Bitcoin should it ever become the generally accepted currency.

Can Bitcoin really function as the global currency that can replace the US Dollar especially with international commerce transactions? This is quite hard to picture out because certainly the dollar did not become the de facto currency without any basis or reason. And we don't have a good model for a country where Bitcoin is already adopted as the primary currency. In other words, it would be experimental and there can be risks that can come arise. Of course, no country in the world will be pushing something like this because of the possible backlash and the world economy today is very sensitive which can be a two-edged sword actually, maybe it is so ready for a grand change or it has become so fragile that a change like this magnitude can just break it. The trend right now for is countries like China and Russia doing "under-the-table" arrangement with other countries for currency swap to wean them from relying on the USA Dollar.

One of the biggest reason why the economy of USA remains to be afloat despite its tendency to go for "quantitative easing" or printing of more paper dollar is because the currency is the top money used in the global commerce. Now, you take this away and we can see the economy of USA suffer the inflation effect of printing money. Getting rid of the dollar as the global currency can be like the biggest cyclone to ever hit the economy of the country, and this can partly lead to the collapse of the country with its economic giant and the superpower status. And the reason why the political leadership of USA is letting Bitcoin go on is because they are aware that for now there is no chance that Bitcoin can replace the dollar as the currency of the world, otherwise the attitude will be changing and I am sure of that. Bitcoin's volatility is hampering any chance that the world economy is going to adopt it as the default money.

The U.S. dollar is currently the reserve currency of the world, but it comes at the cost of trade imbalances and growing debt. Bitcoin, on the other hand, provides the world with a better alternative.

Does it benefit the United States to have the dollar as the world’s reserve currency? Although often assumed to be a net positive, it comes with a few drawbacks that can’t be ignored.

Source link here

I don't know if you guys agree with this or not, but I would rather be in favor of Bitcoin than the USD as the world's reserve currency. It might take a very long while to make it happen because most of the people right now are still in favor of USD as the reserve currency of the world.

Let me know guys on what do you think about this? Do you honestly agree that Bitcoin is much better than USD as the world's reserve currency? Share your thoughts or opinions right here. Thanks in advance!