Topic: Bitcoin is Set to Become the Next Global Reserve Currency (Read 314 times)

We have been speculating this and we really can't tell how this will play out in the future, the USA bank on the USD as a weapon to deal with erring nations of the world. For the meantime, bitcoin is yet too volatile to serve as the world reserve currency, we need a huge market cap to ensure some level of price stability so people won't loss money too quickly during a bloodbath day. 

Global reserve Currency is not something that I think Bitcoins would become or is destined to become , the good thing about Bitcoins is ,

It is actually dependent on how people want to use it , therefore I do think that instead of a reserve Currency it would actually be something like an investment.

For being a reserve Currency it should be taken in accordance that , it should be non volatile and backed and that would just make it Fiat.

What is global reserve currency in the first place? Do we need BTC to even become one? Anyway, it's not quite possible right now and BTC, although it's the most prominent crypto, has a couple of downsides that stop it from becoming widely used asset

I though of this long time ago, if we are going to bring back our fiat to be backed by an asset, a commodity then we can start using bitcoin but the problem is its volatility coz the government can't just buy all the bitcoin in the market. I'm out of words to describe but it would look like we are not giving Satoshi's work an honor since he wasn't made it for that purpose. Aside from that, gold is still better than bitcoin when we are talking reserves.


No, not really a cool idea but who knows that it could someday?

Reserve currency it is for that and RESERVE-to use it as a reserve, savings for a crisis and other bad situations.
You are suggesting that we take one of the most unstable financial instruments in the world and persuade the whole world to start using it as a reserve currency.
Are you sure that this is a good idea?

Its not impossible but long to happen i guess.Because there still some countries who dont allow bitcoin on their coyntry.For a reason that bitcoin can be used on some illegal activities.

Volatility does not mean imperfection, it means freedom. True be told, bitcoin isn't really volatile, it simple fluctuates. Zoom out to see the whole graphic and you will recognize a curve, that starts nearly vertical in the beginning and becomes horizontal at the end. The curve is a logarithmic curve and is what bitcoin is following.

Bitcoin has actually been "perfect" since the beginning, but the markets didn't know better, only with time and after observing its behavior, is when more and more people understand and give it due value. Bypassing the silly US sanctions isn't probably a driving factor, as this is something some governments might find appealing but not common people, who are in turn looking for ways to bypass said governments restrictions.

Of course the USD is controlled by USA, it has never been a safe "reserve". Even if they didn't "weaponize it", the simple fact that they could destroy it if they wanted (and a very small group of people have this power) makes it a very poor choice. This is in fact true for all fiat, and many altcoins. Traditionally reserves were held in precious metals for that very reason. A few countries decided to use multiple fiat but this is also a poor choice, as you can always loose a part of them by diversifying you do limit loses but still loses can occur, and you don't want loses at all in your reserves (savings/hold).

Getting legality from all over the world is always much challenging for bitcoins due to the negative impacts of bitcoins on the global trade markets. Bitcoins are been used in a lot of illegal activities until now which might not allow bitcoins to enter the mainstream.

US dollar is really a strong currency and what makes it strong is the strong and most powerful government of the United States. They are the head of the United Nations which makes them the chair leader and they would never allow bitcoins to overtake their major currency withholding such great powers. They might even consider banning bitcoins forever if ever they feel the threat in terms of their US dollar.

Bitcoin avoiding censorship but this feature is highly dangerous too. Criminals and drug users or syndicate can use bitcoin to do such transactions for their illegal activity. There is no doubt that bitcoin is indeed a flexible currency versus a lot of local currency cause of its transparent and decentralized approach but of course we need to seek for solution on how this advantage can be retain without being affected by the likes of the things Ive mentioned above. Adoption is there but these use cases can also be used somewhere off the road which authority are very concern about.

Our country is accepting bitcoin as a payment system, some of the online websites here accept bitcoin as a mode of payment, and it's perfectly legal here. There is also local exchange here in the Philippines, where you can buy and sell your crypto or even transfer it to your bank (as PHP). If you compare it globally, I think it would take a long time considering that many of the countries are still rejecting bitcoin and other cryptocurrencies. Some of the countries are starting to make a move, including our country, the legality of bitcoin is pushing and increasing, It will take time, but I think it's possible that the bitcoin will be accepted globally.

Right now, you are free to use bitcoin, so I think it's meeting its function to be a currency, considering that many individuals are using it. Just enjoy the moment and use bitcoin for your own good.

Becoming the world leader in currencies will not be accepted by everyone, at least by governments and banks, they still prefer safe actions, volatility is the number 1 enemy of all economists and some investors.

What Bitcoin is achieving today, is the adoption and adoption that it had not had, some people see Bitcoin as an alternative safe haven, especially when there are some fundamentals, but we cannot forget the gold that remains the best support in any situation , what benefits Bitcoin the most is the way to make transactions, handle large volumes of money, it is not complicated how to transfer gold, from there the advantages will be fundamental for many people in the world, which will take them more confidence.

Some talk about the correlation of bitcoin and gold, with the main actions bitcoin has a low correlation, this makes it attractive and it may be that for many they see it as a safe investment, few see that investing in Bitcoin right now can make them millionaires in 1, or 2 more years.

We really have huge expectations from bitcoins as a medium of currency but yet, there needs a lot of time for any such expectation to be fulfilled. US dollar is one of the most vastly used currency and also in over sea transactions we can see a lot of pairs with the US dollar. This has made the US dollar to dominate over the centralized markets but have not yet thought to dominate any of the decentralized markets.

Decentralized markets are growing at a greater extend which is what makes bitcoins more popular and also the time would come when bitcoins would be accepted in the mainstream payment methods. By any chance, if the US dollar tries to enter and dominate the cryptocurrency markets than it would be the time when bitcoins would strongly resist the US dollars and might be bitcoins can acquire the position of the US dollar.

Legality is a strong reason why bitcoin cannot be used as a valid global currency for payment systems. I think the US will never agree with this because they will fully maintain the existence of their currency for a long time.

Bitcoin was created which functions as a currency, but to be used globally as a currency, Bitcoin requires legality from all over the world.

It will be a hard time for bitcoin to become a global or world currency because some of the government doest not want it. Also, bitcoin is only a digital currency and you cannot even hold or touch it physically that makes it impossible to become a worlds main currency. It may be a part of world currency but it cannot replace a money that can be seen and touch physically.

I think volatility & decentralization if preventing bitcoin to become the next global reserve currency. Centralized organizations will not support bitcoin since they will lose power of control. There is not enough reason yet to become global reserve currency for bitcoin at the moment. On the other hand, USA will prevent it somehow. Because one of the powerful country like USA will never agreed to destroy their currency. Before become global reserve currency, bitcoin should be acceptable all over world. If it won't become global currency then how it will become reserve currency?

And the US has every right to do whatever they want. Why? Because they had the capability. Let Russia and China revolt about it, but that's all they can do. No actions are really made about the reserve currency of the world after all. Also, Bitcoin? as a replacement? Nope. Well, not at least in the next few years. Plus, with how some countries are fully against Bitcoin, welp, I doubt it's development as such would be an easy road.

US would probably dominate till the next few decades, and Bitcoin would only have the chance to develop through those decades, which is difficult, very much so. Especially if while Bitcoin develops, the US dollar also develops right? There's also the issue of it being accepted by the world. A currency being forced bt the top isn't really a currency that could be accepted after all.


I have no idea how this became attractive in your opinion.

The Bitcoin is already the main cryptocurrency worldwide, it is the digital asset that generates the greatest confidence in the financial market of cryptocurrencies, this confidence is similar to the trust that people have in gold, however, this cryptocurrency has certain characteristics that make it attractive, and these characteristics are:

1) Mining: requires expensive technology and a level of technical training to improve work.

2) Blockchain: The blockchain technology that generates high confidence in the security   level which is behind every transaction with Bitcoin making the probabilities of hacking in the blockchain extremely low.

3) The total amount of Bitcoin that will come out: According to the CoinMarketCap portal the amount of Bitcoin that will be mined will be 21 million, by that time the btc creditors will be monopolized all of them making it a scarce and valuable asset.

4) Full decentralization: no state, no government and no legislation can influence the generation of more BTC or control its distribution, purchase and sale and will remain anonymous.

It is true that Bitcoin is set to be a digital currency and it is probably used as a global currency. But it depends on how the countries around the world to consider it. If most countries in the world agree to apply it as the global currency, then it will have a chance. However, if there is nothing change, I mean the legalization status is still the same as today, so I doubt to see it as the next global currency.

China and Russia are always welcome to start using whatever currency they want, but their broke-ass economy wouldn't be able to handle the consequences of it.



Wrong. The risk of seizure of countries assets is extremely low, Russia, China, Iran and other countries keep violating human rights and international laws, and they get a slap on the wrist at worst (sanctions against individuals). But losing 80% of your reserves value in a matter of a year can easily wreck your economy for years and even decades.

I think it's still too early for that, bitcoin has still a long way to go before that happens. USD may not falter that easily given that they are still atop, it's true that bitcoin is a good option but what does really it means to be a reserve currency? I think that needs to be answered first before we came up to a conclusion.