Topic: Could Bitcoin one day become the global reserve currency? - page 5. (Read 774 times)

Even people who are not here just for the profit, could end up not caring about it because they would be basically doing something that is lacking the thing that made it worth it. Like for example I am not here just for the profits, I like bitcoin because it is a great currency and I work in the crypto world, there would both be a situation where there are less work available so I would probably be unemployed, but it would also be something I would cash out directly instead of keeping it in bitcoin as well.

So, it is quite important to not mistake bitcoin with anything else, it would be a shame if it was ever a stable thing and lacked the volatility it has today.

If today we can have USD as the most reserved and globally recognized money, then having another with time is not what we can doubt for because all it requires is time for bitcoin to become the supreme currency everyone will always wanted to use all over the world, as we cannbow see currently that bitcoin is gaining this massive recognition that is irresistible by fiat or government because the world economy is turning into a digital runnings with bitcoin in this present dispensation.

It has been debated for a long time and I think that perhaps a few years ago it was seen as more feasible, but now I think that its widespread use as a currency most people believe is not viable. What it is is the best store of value, so it is used and will continue to be used. So I think the OP is partly right on the reserve part but not on the currency part.

Today gold is not a currency, although it was in the past, and the reserve currency is instead the dollar. Bitcoin has emerged as an enhanced digital gold, which I increasingly believe will replace gold as a hedge.

A "Strong country" is a debated phrase to make, I believe you you those who have more influence on world economics than others. Now legalizing bitcoin is also an absurd term to use because it was never illegal to use it in most countries, but instead it was in "grey zone" that the government did not want to touch.

Volatility can one aspect but I believe acceptance is also low which is a bigger aspect than volatility. The number of people in a country using bitcoin is abysmally small if surveyed on a global scale, but I would be happy if proven wrong.

With a small userbase I hardly think governments actually want to make a move on bitcoin users. Hence our focus should be on bigger acceptance from no-coiners gradually to increase the userbase and then see how governments respond. Becoming a global reserve currency is a long shot statement to make and will not happen overnight.

Maybe, just like how gold can become global reserve asset.

Bitcoin can become global reserve currency but it's just for small portion due to it's high volatility, there's no way Bitcoin will become global reserve currency for 100% because there's will be a country which disagree with this implementation.

Exactly. I hate to say this but right now even if we say that lots of users now rely in online payments, there have been a few merchants that are accepting crypto as modes of payment.

Adding the fact that big companies that offer similar services like those small merchants aren't fully convinced on using cryptocurrencies, some countries too didn't implement crypto as a legal tender. If I were a merchant too, I wouldn't risk my startups by doing that. I would instead use my own money to buy crypto as a personal investment.

Crypto right now IMO is still at the early stages like a child ranging from 6-12 years old. Based on what we I can see on my country's economy, it is still not yet ready to adopt crypto, and is still on the stages that our country is slowly adopting to the new norm which greatly revolves around computer.

This theory makes sense, because most people are interested in Bitcoin solely for the sake of profit, and they are most interested when the price is rising. If the volatility disappeared, the game would change completely, but somehow it doesn't seem to me that it would be positive for Bitcoin in the sense that it would eventually become accepted as a means of payment by more merchants.

They can do this even today by using payment processors that allow them to completely avoid volatility because the customer pays in BTC and they receive FIAT in their bank account. Therefore, I think that from the side of merchants, volatility is not a problem, but the real problem is that globally less than 5% of people are somehow involved in cryptocurrencies, and a very limited percentage uses Bitcoin as a currency.

In other words, the user base is so small that it does not motivate merchants to even think about offering such a payment method.

I think bitcoin will be difficult to become a reserve currency as long as there are no strong countries legalizing bitcoin, if a strong country officially legalizes bitcoin then bitcoin will be more secure, there are too many weaknesses in bitcoin but if it is legalized by a strong country there will certainly be many rules, for example price controls on exchanges so that bitcoin is more stable and will not be too volatile as it is today.

No doubt bitcoin has long list of pros but where is pros there is cons, like in your first statement, last year btc failed to resist against inflation, no doubts it frees us from going to bank ( but does it really happening) like we are all have no or less options to deposit and withdraw btc/usd pair without banks. Ahh, if you work for someone in exchange of btc that is another discussion.
Countries are run by governments and in each country there are more than one governments each with there own agendas and secrets and they do not want it to be seen by public and hide it. But if bitcoin becomes the global reserve ( currency to store value of money for country) then this will not become private anymore. anyone in the world can check the total reserves and accounts limited details that is holding the reserves of country. countries has many expenditures like (agencies) and that is something on which no one wants to compromise. so overall, nothing is safe in digital world until you or someone within the system do something stupid.
Now coming to your queries.
1. Every sector in the world like industry, production, consumption transportation etc consume high amount of energy, And only literate people care about consuming less energy, Bitcoin no doubt is using high energy for mining but as you may be aware mining of btc is near to an end which will eliminate your first query. And further many platforms are introducing green carbon slogan to eliminate the impact of high energy consumption or at least reduce it.
2. well in case of volatility, some people admire it and some not. because this volatility is the fundamental pillar of crypto from which investors and hodler can make passive income and can become millionaire over time. No doubt it scares traditional fiat users but ones they get familiar with the value of this volatility then they will also admire it. secondly, using btc for Reserves, we can analysis el-salvador country how much it will improve and how it will rise along the rise of bitcoin by riding on the rocket fueled with volatility.
3.Wars, no doubt has great impact on devaluation of currencies. wars not only effect btc but also caused devaluation of many currencies like, in world war 1 Germany printed more notes than reserves thus this causes inflation and devaluation of currency, Syrian currency also devalued in the war as the Vietnam currency devalued in war well there are many other examples. are there too. So overall, war is permanent and its impact is too. But btc has the potential to bear it. but idk maybe it has the potential to bear total electricity blackout in the world when aliens will come. hahah.

overall, btc has outperformed in the previous fuds, wars, pandemic etc and i think above mentioned three reasons might not become a hurdle for it to become reserve entity but governments like the developed one are never going to use it for reserves. only the developing and near to bankrupt countries might touch this plan in near future.

Have you ever thought of bitcoin being a store of value?  A stable cryptocurrency can be one of the best stores of value and being one of the best stores of value, it attracts merchants and other people that intend to save their fortune.  Bitcoin will also be one of the best currencies that merchants can accept as a mode of payment because its value is stable.


If Bitcoin is stable, the government will see it as a good alternative to fiat currency.  It is impossible for Bitcoin to be used as a global reserve because the majority of its coins are not held by a nation but only by a few individuals. 

Yep. People choose Bitcoin for their investment because Bitcoin price is volatile. If Bitcoin price is stable, I doubt people will be interested in Bitcoin for their future assets. So, the volatility in Bitcoin has its own advantage, it attracts people to have and hold it.

By the way, even if Bitcoin price becomes stable, I am not sure it will be a global reserve currency. There are many countries that still don't trust very well on Bitcoin. Some countries even ban Bitcoin because they assume it harms people. As long as there is no trust among the countries, it will be difficult for Bitcoin to be a global reserve currency.

And at the same time make merchants and other people who do not like will stay away from Bitcoin.  If Bitcoin becomes stable, it is obvious speculators will go away but investors will stay.  Company will take advantage of the stability of Bitcoin price and there is also a possibility of a merchant boom that will accept Bitcoin as a mode of payment. I believe there is always an opportunist in every kind of situation.  Whether Bitcoin is highly volatile or stable, people will adopt it.


I agree Bitcoin is not intended or created to be a reserved currency, to support the statement it is stated in this article[1] that:

---

[1] https://www.newscientist.com/definition/bitcoin/#:~:text=What%20is%20the%20purpose%20of,used%20just%20like%20traditional%20currencies.

The most significant factor that will deter companies from using bitcoin as a reserve currency is its volatility. I believe that those companies that are already using it as a reserve currency are doing so gladly because they have faith in the currency and the possibility of profiting from it in the future; they are simply following the trend but have a backup plan. Bitcoin will not be their sole reserve currency, but their investment with bitcoin will enable them to sell their services to their customers who are interested in partnering with them.

Volatility is the main reason people are still trading and making money from it. So it is unlikely for Bitcoin to just get stable at some point. The price we see now is just a paired amount with dollar in order to easily understand the value of it. But if we keep that on the side, 1 Bitcoin will always be 1 Bitcoin. So it is possible for Bitcoin to become the global reserve currency if we can forget what it's worth by pairing it to other currency and accept it as an individual currency. That way we can truly call it a currency and people will be willing to take is for a reserve asset.

When you're already writing about it, then at least provide information that will show us how much energy Bitcoin consumes globally? Is it 10%, maybe 5% or less than 1% of the total amount of electricity produced in the world?


If the price of BTC was somehow stable, do you think there would be more investors or traders? It is precisely this volatility that attracts people, because haven't you heard stories about people who became millionaires with a few hundred or thousand dollars invested?


From 1914 to today there have been two world wars, the Vietnam War, the Korean War, Chechnya, Iraq, the Balkans, Afghanistan, Syria, Libya, and now Ukraine. There were many more conflicts that I didn't mention, but I don't understand why you think that the last 100+ years are the "best in history"?


You are living in a big illusion, because the world as it is today will never accept Bitcoin or anything like it as a world reserve currency - nor was Bitcoin intended to become one.

Bitcoin will hardly topple the dollar or other major central bank-issued currencies, but its technology will change how we conduct payments, banking and other financial transactions. These changes will bring many benefits although there are significant downsides as well.

It is not at all necessary for banks to join and use cryptocurrency if they cannot beat it. The banking system is a part of state power, and states always use such leverage as regulation for undesirable processes. By regulating the circulation of cryptocurrencies, states can practically achieve any effect. Banks use everything from cryptocurrency that is beneficial to them to increase the efficiency of their fiat system, including they, like the state as a whole, use blockchain technology. But they will not use bitcoin or another decentralized cryptocurrency as a reserve currency, as this is not acceptable to strengthen their fiat. Commercial structures, individuals can and do do this, but this will not affect the state banking system in any way.

What you said and asked is a very complicated things since Bitcoin and fiat should coexist and not the other way around. You can't just use crypto currency when there's a war because it might affect the internet connectivity during transaction and fiat on the other hand is a must to some but it's useless when there's a war because all establishment are closed. Therefore, there only way of making things to work is through banks and I don't think the government would like to use Bitcoin as a reserve currency for their emergency since there hasn't any single entities owning Bitcoin and therefore a use of third-party to get involved is a must if they wishes to use Bitcoin just like how banks work.

The "can bitcoin become a global reserve currency" discussion has been had many times. It has simply taken other forms.

Some believe governments should regulate and control assets like global reserve currencies.

Others throughout history have said it is a bad idea for politicians to control the money printing machine. They say mints and other critical aspects of monetary policy and the economy should be independently owned and operated to prevent political conflict of interest.

Perhaps in the future global reserve currencies will follow a similar format. Where they do not fall under the direct control of politicians. I certainly would not mind it. I wonder how others would feel.

There is a possibility but with the high volatility of Bitcoin, only brave CEO who can take the risks will be the ones making it a reserve currency.  Those who have seen how those companies got bankrupt in making Bitcoin a reserve currency during bear market will be dissuaded to use Bitcoin as a reserve currency.

I think Bitcoin is more of an alternative currency than a reserve currency because countries how they see Bitcoin atm will not take a highly volatile currency that can crash anytime as their reserve currency.  For them, stability is way more important that the possible surge in price.