Topic: Diversification in Global reserves. (Read 618 times)

Inflation, the ever-looming shadow. Each and every currency, and I do mean EVERY fiat, loses value. It must happen. It's in the beast's nature. What then is the solution? What combines the security of gold with the practicality of fiat?

Bingo: Bitcoin. Bitcoin is a revolution, not just a digital currency. The time has come. It's revolutionary. But, and this is a big but, we need to increase adoption. There are more outlets for it, more establishments that accept it, and more people who believe in it. Bitcoin may very well become the next big thing once that occurs. Let's embrace the future and write the book on finance

Gold definitely can't be used as a currency, not right now anyway and we are not gold backed fiats anywhere in the world as far as I know which all combine makes it impossible for gold to be used.

But, fiat loses its value due to inflation as well, and this isn't like a single fiat, every single fiat loses its value, some more than others but they all do. That means we need something that can store value as good as gold, but can be easily spent as easy as fiat, what do we have like that? Hmm... Bitcoin? I think so, I believe that I can easily invest into bitcoin, anytime I can spend it then I can, we do need more adoption and more places that accepts it, but all in all I can say that it is the ideal asset right now.

Theoretically crypto currencies would be the perfect currency to be the next global reserve currency. No country alone would have full control over it and the decentralization aspect would remove a lot of political pressure. Unfortunately we are not living in a perfect world and I don't see any chance at the moment for cryptos to become the new global reserve currency.

There might be support from smaller countries that don't see a chance for their local currencies to have any impact, or that is fluctuating too much and scares investors away due to the high volatility.

Gold definitely can't be used as a currency, not right now anyway and we are not gold backed fiats anywhere in the world as far as I know which all combine makes it impossible for gold to be used.

But, fiat loses its value due to inflation as well, and this isn't like a single fiat, every single fiat loses its value, some more than others but they all do. That means we need something that can store value as good as gold, but can be easily spent as easy as fiat, what do we have like that? Hmm... Bitcoin? I think so, I believe that I can easily invest into bitcoin, anytime I can spend it then I can, we do need more adoption and more places that accepts it, but all in all I can say that it is the ideal asset right now.

As history has shown, gold cannot be used as a currency. The value of a currency - money - is in the speed of its movement. I signed the transaction and received the money in minutes. Rhetorical question - how to pay with gold?
Exchange obligations in gold? Voros - how can you be sure that I have in my reserves the 100,500 tons of gold I indicated? Those. a debt obligation in gold is a dummy. However, just like the gold and foreign exchange reserves of countries, there is a nominal indicator, but no one ever allows auditors. The question is why?

As history has shown, gold cannot be used as a currency. The value of a currency - money - is in the speed of its movement. I signed the transaction and received the money in minutes. Rhetorical question - how to pay with gold?
Exchange obligations in gold? Voros - how can you be sure that I have in my reserves the 100,500 tons of gold I indicated? Those. a debt obligation in gold is a dummy. However, just like the gold and foreign exchange reserves of countries, there is a nominal indicator, but no one ever allows auditors. The question is why?

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

Since English is not my native language, maybe I didn't understand something, please clarify - about "I would say whenever you try to attack" - did you mean me ?  Am I attacking someone? Perhaps I am accusing someone of something?  And who do I consider worse than my nation? Please clarify, because it sounds rather strange or unclear, as far as I am concerned

And about the dollar. You know, just because the dollar has given up a little bit, it doesn't mean that others have taken its position. The problem is that you probably measure everything within the framework of the idea of "dedollarization". But the dollar, and all other currencies after the covid and political-economic cataclysms of 2022-2023, have been hit hard, and you can't name a single SIGNIFICANT currency that has only been getting stronger in recent years.

Well, de-dollarization itself is quite a new bubble that China and a couple other countries are trying to inflate first of all, but not for your salvation, but only for their own. Even if BRICS switch to kauri, gold, or horses as a form of mutual settlements, it will not change anything for the world dollar economy - BRICS countries will still have to buy from the external economy for dollars The BRICS yuan is of no use to anyone outside the BRICS. By the way it turns out India among others

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I would say whenever you try to attack others because you think they are much worse than your nation, you should remember the nation where people die because they can't afford healthcare. You can work for 60 years, invest and save carefully and then if you get cancer, not only you die of course but also everyone around you lost all those savings as well. All of your money is gone along with your life. Care to imagine which nation that is?

I think you probably know which one that is. This is why we should not just bash those nations, I agree that those are bad, but Dollar is not strong anymore, it is getting less and less valuable and eventually not many people will use it. I am not saying it will not be top ranked, it can stay top ranked, just not be 90% of our reserves anymore.

So, do you think cryptocurrency stands a chance in share of the global reserves, now that countries are opened to diversification through assets? 

Where's the competition?
China yes, huge, but export oriented, and export dependent economy, with lots of problems. Which will only get worse under the "new course of the party".

BRICS - the only stable and strong economy (against the background of other BRICS members) is India. So India has unambiguously voiced its vector of further development - western, with a developed western world, with western values, and without the support of rogue countries.
Tell me about the economies of the other BRICS members ? How can they compete ? NOTHING !
And India has chosen the optimal path - mutually beneficial cooperation, where India sees itself as the center of the "global south".

The fiat currency as we all know is subject to inflation. Needless to say, a lot of economies have gone down due to it, but today, we're going to be talking about the US dollar.
 
The US dollar has lost 98% of its purchasing power since 1971 and has gone through an 8% decline in its shares of global reserves in 2021. Now the thing is, if the USD continues to face inflation this much, do you think the Global reserve would be worth anything much in the future?
Lately, other countries have begun to carry out trade in currencies aside from USD due to US sanctions and other reasons including trade war with China and fed hikes to reduce inflation.

I'm April, Emmanuel Macron, the French president said that Europe must reduce its dependence on the US dollar to keep its strategic autonomy and avoid becoming vassals to America.
Although dollars play a huge role in the world financial system and cannot be replicated by other countries, it doesn't still change the fact that it's declining and we may need alternatives to occupy shares in the reserves.

Gold seems like a fine option, considering how its purchasing power, remains more stable over time, but do you think cryptocurrency stands a chance?

 Now don't get me wrong, we all know and understand that Bitcoin in particular is decentralized, hence making it an alternative to money. Anyway, I intentionally used crypto and not Bitcoin since there are centralized coins that can be controlled by the Fed like USDC & USDT ( another thing is if they hold value as much as gold to be included).

So, do you think cryptocurrency stands a chance in share of the global reserves, now that countries are opened to diversification through assets? 

 Now don't get me wrong, we all know and understand that Bitcoin in particular is decentralized, hence making it an alternative to money. Anyway, I intentionally used crypto and not Bitcoin since there are centralized coins that can be controlled by the Fed like USDC & USDT ( another thing is if they hold value as much as gold to be included).

So, do you think cryptocurrency stands a chance in share of the global reserves, now that countries are opened to diversification through assets? 

Who told you that the US economy doesn't face any competition? Isn't the rise of China and the rise of BRICS competition from the US? If a country becomes the strongest power in the world, its currency will be considered the world currency and a reserve currency. This means that the USD can be replaced in the future if the number 1 position of the US is knocked out and replaced by another country.

You are right, bitcoin cannot yet become a global reserve asset for many reasons such as not being widely accepted as you mentioned. But with advantages even superior to gold and with growing acceptance, it is certain that it will become a global reserve asset.

So, do you think cryptocurrency stands a chance in share of the global reserves, now that countries are opened to diversification through assets?