Topic: Could Bitcoin one day become the global reserve currency? - page 2. (Read 793 times)
The basic thing that makes many people don't want to use bitcoin for international transactions or to become a reserve currency is because the price of bitcoin is very volatile, companies will be confused about offering products or services to consumers at bitcoin prices, for example today there is a deal and the next day the price drops so there will be a cancel the deal.
that's what prevents bitcoin as a global currency, I think there will always be flaws in a system and security.
that gap is made to maintain it, like soap that cleans 99% of germs, the remaining 1% is left so that the product can still be used and purchased, that's what I mean.
Besides we need to wonder if it is actually needed for bitcoin to reach that position, after all more than anything what I would want is for bitcoin to be accepted at enough businesses around the world that I can walk in almost any store and buy what I want with my bitcoin, if bitcoin could reach that stage of adoption then whether it became a global reserve currency for the governments will not matter at all, as at that point we will be able to use our bitcoin as freely as we want. that gap is made to maintain it, like soap that cleans 99% of germs, the remaining 1% is left so that the product can still be used and purchased, that's what I mean.
Nahhh, I don't think so. If it's happens then we can there will be taxes and monitoring system for transaction.Because everyone will do crimes using btc transaction. Just my idea 
that's what prevents bitcoin as a global currency, I think there will always be flaws in a system and security.
that gap is made to maintain it, like soap that cleans 99% of germs, the remaining 1% is left so that the product can still be used and purchased, that's what I mean.
that gap is made to maintain it, like soap that cleans 99% of germs, the remaining 1% is left so that the product can still be used and purchased, that's what I mean.
Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.
- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.
What do you think about the subject? Can you share some enlightening information for me?
- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.
What do you think about the subject? Can you share some enlightening information for me?
That true, Bitcoin has many advantages as a currency, such as decentralization and resistance to inflation but there are still challenges to overcome before it can become a global reserve currency. Its high energy consumption and volatility are concerns that need to be addressed, and it lacks the backing of a government or military force. Ultimately, time will tell whether Bitcoin can overcome these obstacles and achieve its potential as a truly global currency.
The most difficult thing to unify the world financial system is that all countries want to make their currency a global currency, of course it will be a long and tiring journey to make bitcoin as a reserve currency, in my opinion if the bitcoin community gets stronger then without official approval from the state it will automatically bitcoin can be a reserve currency.
Since Bitcoin is not under anyone's control, even though it is an investment asset, governments will not decide to make Bitcoin the global reserve currency. It is completely impossible. However, it may become widely used worldwide and be used as an alternative method of Bitcoin payment everywhere. But it will take many more years to start globally. But it can by no means be become the global reserve currency. it is totally impossible
maybe the goal is to create bitcoin, one of the factors, in my opinion, but it takes a very long time, there are still many people out there who don't believe in bitcoin, but with the weakening of the dollar and its inflation, the right solution is bitcoin, I think and some countries have accepted cryptocurrency payments as a medium of exchange, for example, the country of El Salvador.
This is just my point of view, what do you think?
This is just my point of view, what do you think?
The thing that has been a problem with bitcoin until now and at any time is high volatility, of course the state will be worried if it makes it a reserve money for fear of a crash, of course if it officially becomes a reserve of state money it can go bankrupt and speculators can use it to play with a country's profit or loss.
High volatility?!?
I agree that Bitcoin has high volatility but I don't think it is a big problem because some traders prefer Bitcoin because they like high volatility. But, of course, I admit that most people are worried about this. However, I think that the high volatility problem will be completely resolved with the completion of the mass adaptation. As more people own and trade Bitcoin, the trading volume will grow and the high volatility will give way to a calmer flow. We need to be a little more patient in this regard, because I think we are witnessing an early period in the history of Bitcoin.
I agree that Bitcoin has high volatility but I don't think it is a big problem because some traders prefer Bitcoin because they like high volatility. But, of course, I admit that most people are worried about this. However, I think that the high volatility problem will be completely resolved with the completion of the mass adaptation. As more people own and trade Bitcoin, the trading volume will grow and the high volatility will give way to a calmer flow. We need to be a little more patient in this regard, because I think we are witnessing an early period in the history of Bitcoin.
Another trouble or obstacle Bitcoin has before even been considered to be a reserve currency worldwide is the fact there are very powerful interests around the status of a currency (FIAT) turning into Reserve Currency.
Naturally, the States which have that advantage would not like to have more competition in that regard, because having a near monopoly in the reserve of value around the world is very advantageous.
How would the United States react if oil producing countries started to accept only Bitcoin for their energy, instead USD?
How would Europe react if Chine only accepted Bitcoin instead EUR for their electronics and raw materials?
Obviously, it is a struggle of power.
Naturally, the States which have that advantage would not like to have more competition in that regard, because having a near monopoly in the reserve of value around the world is very advantageous.
How would the United States react if oil producing countries started to accept only Bitcoin for their energy, instead USD?
How would Europe react if Chine only accepted Bitcoin instead EUR for their electronics and raw materials?
Obviously, it is a struggle of power.
Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.
This part of advantage of bitcoin over fiat is a major plus but regarding to inflation I think it may not be direct or always but also remember when the price of bitcoin is down then it can be affected or is affected by inflation since the value of 0.005 btc during a bull time is not same value when price is low. So the fluctuation of bitcoin to many can be argued as inflation. If you look at the experience of the bitcoin investment of El Salvador, that is an example of drop in value compared to the price it was invested on. Therefore using bitcoin as a reserve is still debatable.
If we could achieve this far from the general adoption given on bitcoin then within a couple of years to come bitcoin could have gone beyond the imagination of the people especially government, by then they would have no option than to follow the desire of the people for a decentralized network, there's no uncertainty in this because bitcoin has already emerged a successful currency worth international standard and everyone want to use it.
My answer to your question is No. In my own opinion, there is no way that bitcoin will be allowed to become the global reserve currency anytime soon.
the World Bank, The governments of countries, and the IMF, will not consent to it. They want something that they can control, manipulate and regulate and bitcoin doesn't fall into any of these categories.
What I can say is that it may become the reserve currency of some countries just El Salvador(I believe some other countries with failing economies will join soon) but not the world.
Countries like China, Russia, Brazil are already in talks to ditch the USD and create their own and bitcoin isn't on the table, so I don't think we will see bitcoin being a reserve currency anytime soon.
the World Bank, The governments of countries, and the IMF, will not consent to it. They want something that they can control, manipulate and regulate and bitcoin doesn't fall into any of these categories.
What I can say is that it may become the reserve currency of some countries just El Salvador(I believe some other countries with failing economies will join soon) but not the world.
Countries like China, Russia, Brazil are already in talks to ditch the USD and create their own and bitcoin isn't on the table, so I don't think we will see bitcoin being a reserve currency anytime soon.
Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.
What do you think about the subject? Can you share some enlightening information for me?
What do you think about the subject? Can you share some enlightening information for me?
I like this topic
The idea of Bitcoin becoming a global reserve currency is appealing, but there are significant challenges that must be overcome for that to happen. Bitcoin's high energy consumption and volatility, as well as the lack of support from governments or military forces, make it a risky choice for many.Additionally, the dominance of existing fiat currencies and the political and economic challenges of creating a new global reserve currency make it a difficult proposition. However, the growing popularity and adoption of Bitcoin, as well as the potential for technological advances, means that it cannot be completely discounted as a potential global reserve currency in the future.
One of the main disadvantages is that there is no one that is willing to speak on bitcoin’s behalf, the US has no problem promoting and even forcing the use of the US dollar around the world, but when it comes to bitcoin due to its decentralized nature there is no one there which is talking positively about it, and since at those conferences and reunions is where the big decisions are taken then we can assume that there is still a long way to go before bitcoin could be used as a reserve currency around the world.
True bitcoin does not have a single spokesperson and it was intended to be like that, rather the people are its spokesperson. This is tough to handle on a global stage where every country is trying to squeeze it in their own needs and nuances. While bitcoin has a long way to go these conferences and all dont help much because they are focussing more on altcoins and newly launched shitcoins and doing expositions for them. They have reduced in frequency but they havent yielded much for the bitcoin community.Exchanges and casinos know that bitcoin is the main asset for them so they do their part, gradually there should be more traction in sector, lets be hopeful and keep gathering more.
A reserve currency doesn't have to have government endorsement. USD is the current reserve currency -- and the U.S. has plenty of adversaries that forcefully hold the currency for the sake of participating in the global economy. China, Russia, etc. would love nothing more than to not rely on the United States currency system in order to trade which is why USD is being dumped out of currency reserves at record rates due to high inflation and overzealous sanctions. It's within the interest of countries to adopt a decentralized asset that isn't prone to the typical political manipulation that USD is subject to.
Gold solves the issue but for logistical reasons, it isn't feasible to conduct bilateral transactions through gold. Crypto fits the bill quite well.
Even if crypto fits the bill very well as per the criteria mentioned, what about volatility? Don't you think that could be an issue for countries that would show interest in using it as their reserve currency and using it as payment for global trades? What would happen if the price falls significantly just like it did in the past? How would the countries behave in a situation like that?Gold solves the issue but for logistical reasons, it isn't feasible to conduct bilateral transactions through gold. Crypto fits the bill quite well.
I believe this is one of the reasons why Bitcoin will probably fail as a reserve currency unless every country accepts the fact that they will face a loss of monetary value every time the price falls.
In my opinion, the strongest candidate to become the global reserve currency is bitcoin. Currently, there are many countries that oppose the use of USD because it is considered detrimental. This can be an entry point for using bitcoin.
Let's wait to see if a country will soon appear that uses official bitcoin and is equivalent to the legal currency.
Let's wait to see if a country will soon appear that uses official bitcoin and is equivalent to the legal currency.
Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties.
The third party of crypto currency or blockchain technology is the miners they handle the role to legatimize transactions of bitcoin and ensuring their validity. They process the computational work in network to break the tie every node. Miners transmit a block to the network after win the PoW (proof of network). you can see this scheme as an ilustratio.
It has great features.
- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.
-snip-
What do you think about the subject? Can you share some enlightening information for me?
energy consumption of bitcoin is not always profligate. it depends on how the electricity is produced, almost majority of developed country use environmentally friendly power plant. - However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.
-snip-
What do you think about the subject? Can you share some enlightening information for me?
Af of August 2022, i found the data that says the total global electricity usage of the crypto assets were between 120 billion kilowatt-hours and 240 billion kilowatt-hours. This amount is huge enough for electricity usage per year. But we should compare this number to the total of annual global electricity usage. global electricity usage of the crypto assets is equivalent to 0.4% to 0.9% of annual global electricity usage. so your statement that says bitcoin has very high energy consumption is not really true.
You can learn more about this from this reference =
FACT SHEET: Climate and Energy Implications of Crypto-Assets
Bitcoin is not going to become global reserve currency for one reason, I think the most obvious reason right now is that governments do not fully support bitcoin as a currency or means of payment. So far the government or relevant institutions do not hold large amount of bitcoin, hence bitcoin will not become a foreign reserve. After all, governments cannot control bitcoin, that is another reason why bitcoin will not become global reserve currency.
I'm not sure volatility is the most compelling reason why bitcoin can't be global reserve currency, but bitcoin's decentralization is the main reason why it can't be global reserve currency.
I'm not sure volatility is the most compelling reason why bitcoin can't be global reserve currency, but bitcoin's decentralization is the main reason why it can't be global reserve currency.
A reserve currency doesn't have to have government endorsement. USD is the current reserve currency -- and the U.S. has plenty of adversaries that forcefully hold the currency for the sake of participating in the global economy. China, Russia, etc. would love nothing more than to not rely on the United States currency system in order to trade which is why USD is being dumped out of currency reserves at record rates due to high inflation and overzealous sanctions. It's within the interest of countries to adopt a decentralized asset that isn't prone to the typical political manipulation that USD is subject to.
Gold solves the issue but for logistical reasons, it isn't feasible to conduct bilateral transactions through gold. Crypto fits the bill quite well.
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