Topic: Diversification in Global reserves. (Read 531 times)

That's right, the inflation can come at any time however and fiat also has the potential to lose value where more money can be printed, with Bitcoin, there is a hard cap. There are people who manage to live on Bitcoin.


Bitcoin is a giant payment system, everyone in the network has an entry point or account. Even though it still takes time and is still considered new, I think we will get to that point (Full adoption) As long as Bitcoin is allowed everywhere in the world.

I hold the belief that keeping assets in the form of USDT or stablecoins while they remain under the control of centralized institutions is not a favorable choice. Their value will continue to track FIAT, and if the USD experiences inflation, it won't have a positive impact on the crypto USDT portfolio. It's a different case with centralized coins like XRP, which may offer better opportunities than USDT, though I trust you understand the associated risks.

To diversify in the realm of crypto, I will steadfastly embrace its inherently fluctuating nature, whether it be small or significant. I will continue to make choices using a more thorough fundamental analysis. This implies that, in my view, USDT is not a suitable place for long-term asset storage; it's better to have faith in USD if there are no other options.

Gold, the timeless symbol of wealth. But as a day-to-day currency? Nah, not happening. There's no gold-backed fiat out there. It's all about trust. Trust in the system, trust in institutions, trust in... well, trust

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

For us, obviously yes but for them? No way. Being decentralized is actually the thing that they hate the most. How can they do their manipulations this time? There are now global reserves that they primarily used. I am fine with that already and cryptos being legalized by them is already a big thing for me. Maybe it is more possible for them to make it as a legal tender than making it as a global reserve, but that is even better. What more can we ask for?

But don't forget that cryptocurrencies are also high in volatility, although it's much better because their supply is only limited and there is always a chance for their value to recover than some local currencies out there.

Gold can be described as an interstate store of value that is not subject to significant price fluctuations like bitcoin. Yes, bitcoin is more liquid, but gold is more secure and does not need the internet to use it. And gold is more anonymous. Bitcoin's strength and weakness at the same time is the blockchain

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.

If I'm not mistaken, gold was used as currency in feudal China. According to historical films produced by China, the people of this country at that time used silver and gold as currency in exchanging goods. But it must also be admitted that using gold as currency will create more disadvantages than the benefits it brings. But no matter what developments or major changes the world has, gold is always a valuable asset and receives the most attention. No other property can surpass it and that has been proven for over a thousand years.

Of all the metals you mentioned, gold can still be relied on as a store of value because gold's liquidity is very different from other metals such as silver and platinum. However, in terms of cryptocurrencies, I see that they are very suitable to rely on to increase profits through investment and trading because everyone can buy them to expect profits within a certain time period even though the level of risk is also very large. But in terms of compatibility, cryptocurrencies are more in this direction because they only store value in stablecoins and also in physical or non-physical gold.

While that's true.

It's because the world has been used to that standard and gold has been the basis for having a reserve which is done by most countries. But if one country starts to change that just as what we're seeing with these alliances like BRICS trying to bring down the US and EU.

These global reserves could change but yeah, looking bitcoin at the spot is going to take time.

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.

Indeed, the dollar has fluctuated, but other currencies haven't magically risen to take its place. The term "de-dollarization" has become a buzzword

As a universal measuring stick, dollar value changes cause ripples. Does that mean global economics will stop? Not exactly. As you noted, the dollar's importance in global transactions persists even if BRICS states use unusual trade methods. While intriguing, the BRICS yuan has little appeal outside its own consortium. India's place? Another layer of complexity in this mess. The world of money is constantly changing, therefore it's crucial to keep a close eye on these changes

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

In my view, until now the US Dollar is still seen as the global reserve currency even though there are other minuses, namely that USDC & USDT are still very strong in the grasp/control of the monetary authority.

Well, I think what is happening now is very interconnected with the global economic situation which continues to be mobile and changing due to various factors and for the idea that the OP conveyed above, diversification of global reserves may need to be considered in this case for cryptocurrencies. But, I think there may still be a lot to consider because the main nature of crypto is still relatively unstable.

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.

- Inflation is a natural process, and only inept management of the economy leads to its collapse. Inflation is not a property of fiat money, it is the economy. And the impossibility of additional issuance of bitcoin funds limits its use as a state monetary system.

- The dollar has not lost 98% of its purchasing power Take Coca-Cola, now it costs about 1 dollar in the US. According to you in 1971 it cost.... Do the math yourself, assuming your PROPOSITION of 98%

- The EU has its own currency, and a fairly strong economy. The Euro was just introduced to strengthen the Eurozone

- Gold is a good alternative. But in today's world, as a currency, it is not suitable. And as a gold and foreign exchange potential of countries is INCREDIBLE. Because no country will allow an external audit of these reserves.

- what difference does it make to you whether you pay for dinner in "Fed controlled USTs" or in "decentralized bitcoin" ? 

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. The issue is that there is no common motivation to push for cryptos to take that goal. All the big countries in the world are looking for ways to trade outside of the US Dollar, the dominance of settling international trade in USD is going to keep declining. But it's not clear yet which currency is going to take itself. China, India or Russia will always push for their own currency and would not switch to a decentralized crypto alternative. The same goes for Europe with its large member block, I don't see a chance for all those countries to give up the Euro and use cryptos instead for trading. 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.

Cryptos offer some alternatives, but they've got hurdles to clear for global reserve status. Gold's stability is a strong point, but the crypto game is just getting started. Time will tell!

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 dollar is an illusion currency. It has not been secured by anything for a long time, there are no kilograms of gold that you could exchange for tons of paper dollars. It turns out that the dollar is paper, but somehow, in an incomprehensible way, America managed to convince everyone that it is necessary to store and buy this particular currency. Nevertheless, sooner or later the power of the dollar will end, because the US national debt is greater than ever, and they already barely have enough money to service the interest of this debt.

Actually, I don't find small arguments convincing compared to a long historical journey. The story of diversification is an obvious fact that at any time, adaptation to difficulties or prosperity can bring about major changes to the economy. Even at the present time we can speculate that blockchain technology will appear a lot in the future economy, but it is not entirely certain what will create value and attract cash flow into it.

Governments hold gold because long term it always will outperform a currency being printed to excess, they will make a profit from their own mismanagement.   Gold itself has a flat performance, no yield its price is only especially changing (long term) due to the lesser side of that equation devaluing.     So I wouldn't hold it for performance but for stability and every national bank in the world has it I think.    Russia has gold but China had none at the start of this century hence they have been the largest purchasers every year for twenty years so far as I know.
  JPM shorting I dont count as much, every short is a future purchase.   Every time BTC is compared to physical commodities it should be the same point, they are not close to being the same thing even if the prices could be traded similarly the dynamics of a non physical product like BTC wont be similar to any commodity where they have to physically move and allocate it with cost of holding and so on.   Add in that BTC has a regulated supply unlike almost anything else I dont know why we'd talk which performs worse or best, they arent trying to do the same thing.   I'd generally agree central banks will have a bias towards holding gold, at present the whole world is biased to Dollar and that bias will decline in favor of almost anything else imo.

What we are seeing here is that the interests of the government and the population are different, governments like fiat currencies as they give them a massive amount of power and the only ones that lose are those which are outside the most exclusive circles, but it is on the best interest of people not only to limit how much governments can pry into their lives, but to also limit the control the governments can have over the economy, as governments have demonstrated many times they are not to be trusted as they have crashed the economy of countless countries through history thanks to that power.

Yeah, I agree that the decentralization of the Bitcoin, became the major reasons why it won't be global reserve, and it also why most of the governments don't want to adopt Bitcoin as legal tender. They need be in control on the currency that are used in their jurisdiction. But with the declining economic condition, I think more people will try to diversify their assets and they might move to bitcoin, maybe more goverments will at least legalize bitcoin as an investment asset.

OP, the U.S. Dollar may be worse than the hardest money on Earth, Bitcoin, but if we're merely talking about macro-economics and how the value of other fiat currencies compare to the Dollar, then be prepared to accept this fact,



How much higher did those other currencies lost in purchasing power?
¯\_(ツ)_/¯


But be careful with Gold. The paper Gold market is being shorted by the banksters such as JPMorgan, https://franknez.com/jpmorgan-holds-bigger-short-positions-than-its-total-assets/

They're probably expecting a collapse in commodity prices.

Time will definitely tell us what's going to happen, but I also believe that the best thing to do in this case would be making sure that we are profiting, and that should be an important deal without a doubt. I hope that people could see where it can go, and that is an important thing. I understand that life may not be all that simple, but we could try our best the way we can.

This would allow us to get a lot better and it should not be all that weird on the long run. I know that life is not that easy like I said but making money for a nation is simple, they have billions, just put some of that in bitcoin and hold it, that would be smart. I do not know how many of them will use it though, they may not use it all that often.

i am also more on tangible assets rather than those fiat currencies. what i like about real-estate properties for example, is that their value is increasing thru time. whereas, gold or jewelries, won't depreciate much its value, if it will depreciate. it is actually more on the increasing side. and when it comes to stocks, you also need to keep up yourself about the companies you are going to invest with. sell if you feel that company is not progressing. buy shares if you think they have promising future.

USD, GBP, EUR, CNY, CHF… it really doesn’t matter how much you diversify your portfolio because all of these currencies have one thing in common. They are all FIAT and they are not backed by anything. You shouldn’t hold a lot of FIAT that’s not a good idea. Buy real assets like bitcoin, gold, land, stocks instead and you will be much happier in the long run. FIAT only goes down against the real assets in the long run so creating a portfolio of FIAT isn’t good for your finances. If you still insist on holding some FIAT, just hold USD. You don’t need to hold a basket of FIAT because it accomplishes nothing.

I go with this idea and the last part of it on the doubt bitcoin being used as reserve is correct because bitcoin is not controlled by any government and that a reason only El Salvador have been the country officially adopted it and no industrially developed countries have done that which is because they like to control what comes into their country for regulation. Like you also said in the past dollar have been the major currency for trade because of domination of USA in global financial economy with and things are changing with china , India, Russia and other countries in the south east pushing for economic competition and also presenting their local currency as center of bargain. Hence it is becoming clearer that no fiat currency will become the center of exchange no bitcoin but we are going to have more diversified currency in trade.

The government must change its mindset if it wants to adopt Bitcoin as other countries have done, because there is no way to control Bitcoin like they control fiat money in their respective countries. Each country's government can still exert their control over fiat and continue to use it as usual when they have adopted Bitcoin, so when they already believe in Bitcoin, it doesn't mean they have to immediately forget about the fiat they have used for a long time in everything.

This is indeed quite simple, but sometimes the ego of the government which continues to maintain its own ideas without changing their mindset towards Bitcoin is still an obstacle for most governments. So until now there are still many countries that have not adopted Bitcoin payments even though several countries have not banned Bitcoin from being used for transactions and also as in life.

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.

It is difficult to give a definite answer, because everything is possible. Let's wait and see what fate bitcoin will have as a share of the world's reserves. I am deliberately talking not about cryptocurrencies, but about bitcoin. This is the only decentralized cryptocurrency these days and I am sure that representatives of certain countries also paid attention to this. I don’t think that countries will keep their reserves in cryptocurrencies, when most of them are centralized and you can influence the issue of coins, freeze accounts, etc. This creates unnecessary risks and is no better than the dollar. I assume that first of all their eyes will be fixed on bitcoin. For example, El Salvador accumulates bitcoin, not dogecoin, right. Here is answer to you.

El-Salvador may be one of the countries that has made Bitcoin a reserve for now and adopted it directly (used for transactions in that country). This is the first step for Bitcoin to prove itself and be ready to shift the influence of the dollar.

Bitcoin is moving slowly but surely, starting with support from the community alone, continuing to grow until there is one country that believes in Bitcoin, Bitcoin still has a long story and I am sure there will be other countries like El-Salvador that are ready to accept and adopt BTC legally.

If we are talking about investing in Bitcoin, I don't think we will have any problem there; instead, the only thing I see that is problematic here is that the government is still thinking about how they can control it, but they also know the answer in this matter is that it is not possible no matter what else they do.

That's why the government can only adopt or recognize Bitcoin or not recognize it, and if they do that, they will for sure be abandoned by other countries that will recognize it. It's that simple.

With the current volatility and the adoption scale of Bitcoin the answer is no, the reason why USD became Global Reserve is because United States was the biggest economy without any competition, they supply many products and they also lend money to other countries, and those process required USD, same reason why Chinese Yuan /RMB is raising this day, Bitcoin wasn't adopted by any country that has huge economy, and bilateral transaction were never use Bitcoin, so I doubt that any country would consider Bitcoin to be global reserve.

Whoever looks at Bitcoin and its impact on individual income believes that the same thing may apply at the national level, but countries investment in a different way from individuals, investment funds or companies are the link that may be between Bitcoin and countries, as these funds hold Bitcoin and grant loans to countries, exactly as was done with gold.
What I am suggesting is against the idea of Bitcoin, but it is the option currently available and this may change in the future.
I see that more countries are abandoning the old reserve concept and replacing it with borrowing from wealth funds to which oil revenues or any other revenues flow.

Bitcoin can comfortably serve that role, but you have to be worried about the governments feeling too entitled and wanting to control its price, development, consensus, software, etc. If they cannot do this, they will not take it very seriously.. Fortunately, it's impossible for them to control Bitcoin, as countermeasures have been put in place to prevent that. They could end up settling for centralized cryptocurrencies which will eventually end up as inflationary fiat currencies since there will always be great temptation to inflate and weaken the value of currencies they control.

Gold and Precious Metals can be better alternatives for countries with weaker currencies that want to rely less on USD or avoid it completely. They could continue to use their national currencies as Medium of Exchange between themselves while using things like Gold as Store of Value. Atleast they are national resources they have somehow been able to control their supplies and prices.

Bitcoin is special.

Looking back at the asset management journey of previous generations, we can feel that there will be no tool that will maintain stability in value forever. Even like bitcoin we hear many positive things as a solution to the payment problem, but the reality is that the old system still needs time to adapt or upgrade.

Just like the current story when the internet becomes popular and people can easily perform actions through simple gestures, I think with future developments there will also be many things that will be integrated and applied in life.

Are you aware that there are factors to consider while investing in cryptocurrencies. We already know that cryptocurrency is decentralized, meaning that it is not controlled by any government country. Though there are other cryptos that are regulated due to their centralization.

And because cryptocurrency is decentralized, this is one of the aspects that attracted investors to invest in it. contrasted to the global financial system, which is known to be having a difficulty with rising inflation and the present crisis in Ukraine, which is making it difficult for central banks to handle reserves.

Yes, over the years, the buying power of USD has reduced, but I think you are exaggerating these stats a bit. The US dollar will remain the global reserve currency in the future. Yuan is also used by a few countries as a forex reserve option. BRICS countries are looking to dump the dollar as a reserve currency in future.

Bitcoin can never be a global reserve currency. The reason is its volatility. Countries store stable currency as their reserve, and Bitcoin is extremely volatile and cannot be used as a storage of value on the global stage.
I think at some point in the near future, a small percentage of global financial transactions might be in Bitcoin.

I think going back to the gold standard is impossible because the amount of money the government has printed is so large, and no government will have enough gold to back the fiat they have printed. Furthermore, it will make it difficult for the government to print money and they will not be able to manipulate things according to their wishes. If I remember correctly, the US government proposed and abolished the gold standard for fiat currencies. And they are using USD to control the world quite effectively, it will not be easy for them to lose this power.

People need to realize that what is good for them may not necessarily be optimal for a government simply because of their scale, and while bitcoin can mean for us a great way to diversify our wealth and our income, the same cannot be said about governments, in which their mere size and magnitude makes impossible for them to invest a significant amount of their reserves in bitcoin.

And the only form of money that has been around for a long time and that is big enough to absorb so much capital is gold.

There will be more of them, it's going to be an exponential adoption just how the price of Bitcoin goes. That's how Bitcoin surprises us and it all started from the few financial institutions, to a few countries and soon, more of them for sure.

Definitely, it's a process whether it will be a gradual process but we're seeing the progress. In terms of adoption and progress, we're seeing that Bitcoin was never stagnant on it. There were even a lot of FUDs that were made about it and they never stop but look at the overwhelming response of the people globally.

Bitcoin could have been in the best position to solve this problem,  but I doubt if Bitcoin will be of choice for now as there are various divergent views about Bitcoin but likely something that will happen in the future.
 
For alternative reasons, they should go back to the gold standard (a gold-backed currency) to escape the current economic crisis we have seen lately causing havoc around the world lately.

Inflation is not the major contributor to the dollar decline but also countries that recently started moving away from their reliance on the US dollar and deals are now done outside the US dollar.

A need to diversify or think of diversification of portfolios into assets that are not inflation-threatened such as Bitcoin, Gold, and real estate for hedging against inflation or as a safe haven is highly encouraged.

It's possible but with the government regulation, I think this will not be an easy option to many government.
Though we can expect some private companies to diversify their assets and investments with Bitcoin since they have the money to do so and we are seeing this already. Some companies are already buying Bitcoin and holding it, they might not release it to the public but for sure they already know what's coming, and the diversification is a must especially now that there's a threat of another global market tragedy.

While it is sensible to not trust another nation with your reserves, the point of "reserves" is having something outside of your own currency, you should have that as much as you possibly can, and then have reserves in something else. This begs the question, if you do not want dollars which is reasonable and I do not mean zero, I mean like do not put %100 of your reserves into dollars, that makes sense however, what else would you like to use? I wouldn't really use bitcoin right now, not for a nation size budget, you can't just buy 100 billion dollars worth of bitcoin, nor should you do that for 5-10 billion neither. Maybe a billion would be fine, but that's it. Gold is the smartest way to go in this deal.

As a side note, on an individual level -- Gold, crypto, real estate are all attractive options if you're someone looking to retain your purchasing power. I would diversify into everything, perhaps leaving crypto as the plurality of your total portfolio if not the majority.

Global reserves operate in the same manner, countries usually bend towards diversification in multiple currencies and some physical assets. Crypto isn't part of the global reserves as of quite yet, maybe some number of decades we'll see countries slowly start incorporating crypto into their balance sheet. As of today, it's not really viable.

I believe that more and more places will start accepting it as well. I know that it's not going to be all that easy but it's going to happen fine and people will start to accept it. That was just two nations so far, I am sure that in 10 years we are going to have 5, and in 20-30 years we are going to have 10-20 nations.

That's how it grows do not expect it to be legal tender in 50+ nations over night, we are going to see more nations but first we need to see these two do fine, and make a profit, and that will happen with the next bull run, and other nations that sees this will take notice and they will start doing it too, it will start with poor nations, but then it will grow bigger and bigger. We need couple decades.

What do you mean by global reserves will worth anything, because not every country is using US as their national reserves, they are also using others assets along with it, like Gold, and others assets. But straight answer to your question about if crypto stands a chance to be use for national reserves and combinedly it would put some value in the global reserves. Then dear, open your eyes and check the dominance or market cap of the BTC only.

And then tell me, if it adds value to the global reserves, or if it give competitions to the market caps of big companies like Apple, Google etc.

BTC only covers the %50+ of the whole crypto market and the only coin that we can use in place of gold, many people think gold is limited on earth but I think opposite, and that's why I say, a country should reserve some funds in BTC as diversification is better than putting all the reserves in gold or US or Yuan etc.

At the moment, cryptocurrencies have no chance, even though they're going to be popular in the future, they're not very popular, and they don't have a lot of momentum on the global market. We the mass operating with bitcoin has no such power to lift it up, dollars still have it stands up to now, when you talk about diversification bitcoin have to be legalised all over the world, each country have to support the operation by purchasing their own Bitcoin to serve as example to the citizens

The existence of cryptocurrency specifically BTC has come to a highly transformation and circulatedly recognized and widely accepted with the potentiality to create and generate its investors income and also proffers diverse financial sources.

There are existing terms behind Cryptocurrency how by, it maintenance and even ascends its global financial investment leads as a digital marking system by its volatilities of uncertainty of the digital currency (BTC) values terms it unassurance commodity for global adherences.

After a long mile crypt currency made its vagrant and  extravagant measures of a big opposition in the international and communities financial sources. Hence there shall be a time probably in the nearest that would consider advancement in creativities such as advanced technologies and the marketing assurance in modernity and of course also tends to aim at its regulatory development.

However, the Cryptocurrency has become an economic threat alarming the public sectors and the banking sectors of adopting cautiousness over the legality of the the coins at the virtue of its decentralization and security being which has warranted a ban of the currencies around some certain countries while some are tending to it's unbanned with a goal to boosten investors value and their returns to enhance the public economy.

So I can categorically state that crypto currency specifically Bitcoin has come to stay and taking it leads on a indefinitely height around the globe of diversities of resource as far as other banned Cryptocurrency in other religions are considering to lift its ban after the foreseeing of the currencies value specially BTC with its potentials of exploring its investors in the digital market markets and more countries are yet to adopt its formidable ability to creat wealths.

The problem is that when dollar lost its value, others didn't gain it, they lost their value as well. You look at dollar today, and it is much worse than what it was just 10 years ago, and a lot worse than 20 years ago, but is it still the strongest currency? It is. That alone is good enough reason to keep supporting dollar over other fiat currencies.

However, if we are talking about crypto, then using dollars as investment makes no sense, doesn't matter if it is stocks or gold or whatever, crypto is by far best asset of them all. This means that the only better investment than anything dollar related, would be just bitcoin. This is my thought, maybe you could find something that is better, but I haven't found one so far.

While it is risky, there's a chance. We've seen the Central African Republic and El Salvador that have made Bitcoin their legal tender. They're just doing it one step at a time and their government are also investing on it since they've understood the nature of Bitcoin.

RMB looking at its year trend, doesn't look good at all. Although the BRICS and other alliances are talking about making their own pegged currency which is China's. I do believe that the US will recover as this is a trade war and the US won't allow itself to fall down. There are just too many conspiracies and emotionally attached videos that are being spread on how they're falling. I don't understand a lot with economics but no doubt that they won't just let their ship sink.

I wouldn't trust my wealth being put in RMB (yuan), the current economy of China isn't really the best one comparing to US even if many claim US lost it's purchasing power which I believe is BS because if it did lose that much, why is it still the most used currency around the globe when it comes to trading goods among countries? I would only trust in diversification when I know that the countries where those currencies comes from have a stable economy and has a real potential to compete against the US dollar in the global market.

You are answering your own question. Crypto cannot be used as a reserve because it doesn't have a stable value/price.
Do you really believe that currency reserves are needed in the fiat money era. The US dollar is a global reserve currency, which means that it is used for backing other currencies, but what is backing the US dollar? The USA simply don't have enough gold reserves. Many countries are holding US Treasury bonds in their reserves. What if the USA stops paying it's debts?
I think that we are moving towards a world, where there won't be any currency reserves. The creation and implementation of CBDCs might be a step in that direction.

If we agree that countries want to start reducing dependence on the dollar and find alternatives, there is no better alternative to the dollar. The Chinese yuan is losing its value, the Japanese yen is linked to the dollar, the Russian ruble is under political pressure and the euro, the pound sterling and the currencies entering the Gulf are affected by the dollar, the Swiss franc and gold are almost the same. The most likely alternatives, but they are not as strong as the dollar or the level of liquidity provided by treasury bonds.
Bitcoin is still in the process of growth, and if it succeeds in reaching good levels, it may be options, but stablecoins will definitely not be.

I don't think the cryptocurrency industry will have a chance of becoming a global reserve asset like gold, as they have no intrinsic value other than being used for speculation, the value of altcoins is purely hype and speculation. But if we just consider bitcoin, it's possible because bitcoin actually provides us with useful utilities and its value is being shaped by real demand. That is shown by the fact that it is becoming more and more popular as organizations and countries gradually want to own it.

Whether Bitcoin can become a world currency is still a difficult question to answer. But for it to become an asset as valuable as gold, we have almost achieved it. I believe that in the future when the economy becomes increasingly unstable, bitcoin will be the asset of top concern next to gold.

First off, it's not just the US dollar that has lost much of its value over the years and decades. All fiat currencies have experienced that without exception. As a matter of fact, here in my country the prices of certain goods and services have already doubled, or even more, just in the past decade or two. That must be a lot worse. And my country's fiat is not even the worst performer in the world.

Let's forget about the gold option today. There are so many reasons gold would fail. In the first place, are we to transact with real gold? No. So what are we going to use? Paper certificates backed by gold? Can we verify the gold reserves which back them? Do we have an assurance that the gold in reserve is in equal amount to that of the credits issued? Would the certificates not be repeatedly used as a collateral?

The features of Bitcoin make it a very good option as a global reserve.

There are just a few nations that have decided to de-dollarize trade their partnership.  Prominent among them is Russia, India,  China, and Dubai. However, some of these nations also have business partnerships with other nations that mandate them to use the US dollars. So these nations have not successfully diversified their trade currency due to the widespread use of the dollar.
The French President just made a political statement which has not been backed with action. France's international trade payment is still heavily dependent on the dollar.
The world needs an alternative currency to compete with the dollar because it has become a tool for economic manipulation and dominance. Poor nations have to spend so much money sourcing dollars to engage in trade. The US and its allies are now using the dollars to punish other nations through sanctions. I don't know much about using gold as an alternative currency but decentralized money like bitcoin will be ideal. We don't need a currency that can be manipulated by any or a few countries. The only challenge bitcoin will pose is its volatility.
 
If the price of bitcoin becomes relatively stable it will be a good alternative to diversify assets. But this will be possible if some powerful nations agree to use bitcoin as their reserve currency. I also thought that instead of the BRICS nation coming up with a new currency, they should have used something decentralized.

Its already true to some extent crypto is held as some store of currency but in reserve terms only 1 or 2 central banks maybe have crypto.   The most famous is El Salvador, maybe if they are successful in their policy it will be there after a dozen or more and we can see it develop into something.  At present the value held is by the people, mostly those who wish to have some reference to global currency which they lack in their national currency.  

Global reserves and the makeup that different countries are comfortable with holding are changing all of that time. If your currency enters the favored basket of currencies, it generally means it's more trusted which usually stems from level headed governance that are not prone to shock decisions. Take China for example, it is stuck in a bit of a paradox - it wishes it's currency was in higher demand, but is also battling not to have it freely floated because it would take away some financial maneuvering by the Chinese central bank. If their currency raises too much, it's exports become too expensive and then other countries start looking elsewhere for products, but if its too low then it is expensive for them to import from other countries. The erratic nature of the Chinese government also makes other countries uncomfortable with holding too much of their currency.

For one, it has not been a case of steady decline, there has been some points in the past 50 years where the value of the USD has increased but it has mostly suffered from inflation over the years but still a bit of a way to go to bring worth zero.
Those researves are also not solely held in USD there are several precious stones and other assets Wich make it up.

Asbabgolbak reserve currency, it's a long short. It is possible that Bitcoin gets used experimentally by one of two countries but we are a very long way from a full scale global adoption as a reserve currency if ever.

I would not say cryptocurrency because in cryptocurrency there come ALTs and BTC and I can not vouch for the ALTs as investments for diversification at the global reserve level. Because there are alts that are just shit tokens and don't really solve anything then there are no means to hold them and some are totally built up on manipulation (doge-like). Some are centralized but some are decentralized too but still, they lack the scarcity and security issues.

The solution to all is BTC, we can use BTC for diversification purposes, So yeah BTC does stand a chance in share of the global reserves.

BTC cannot be manipulated at a level at which USD can be manipulated and besides that after reading some replies, some members were saying BTC is better but USD is still in the hype and was comparing ((kryptqnick) BTC with USD. For those I have only one question, which is:

Which pair with BTC has the most trades till now?

The answer is USDT which has crossed 1 billion USDT and tell me USDT is pegged with? it is pegged with the US dollar, which means indirectly BTC is also promoting the US dollar and they are printing a hell lot of dollars.

Point is, People are looking to diversify their funds, but they don't know they are also depending on US dollars to some extent but they can avoid it, by trading in some other pair of course.

While Bitcoin may be the best answer to your question, countries that intend to diversify their reserves will mainly consider assets that they can fully control and monitor. In the European example, the best solution to reduce dependence on the dollar is to strengthen the position of the euro and encourage everyone to use it instead of the dollar. At the same time, this is not an easy step, given that the dollar is the approved currency in international exchanges, and it will not be easy to delink from the dollar, especially since Europe is in an economic and strategic alliance with the United States, and this will have serious consequences on several aspects.

The answer to your query lies in your position itself, like the title says, Diversification in Global Reserves. Because nations have been so reliant on US dollars since 1971 and continue to be so. Even many developing countries took huge loans with huge interest in US dollars from the IMF. By doing that, they have no choice other than to follow them or do whatever the IMF asks them to do.

Therefore, people, nations, and governments are looking for other assets that can be used for reserves because gold is obviously the number one thing, but many countries lack it while the US doesn't.

Even though there is a huge tax on taking gold from one place to another, sometimes they don't even let anyone take gold from one place to another. The transportation of gold is very difficult. But in comparison to that, BTC can easily be transacted, and it has the factor of scarcity, while gold doesn't have that. And with BTC, there are other 20k tokens and coins. Which also diversified the portfolio and provided people with better options instead of just relying on the US dollar.

The US inflation has been pretty stable at a fairly low rate, something policymakers consider acceptable. And the global reserves decline isn't really showing any kind of trend, as the USD is still at the top without any close contenders, and it's been fluctuating somewhat over the years while keeping this generally strong dominance.
I think using some BTC as a reserve can be a good thing, but it's also a matter of whether other countries will be willing to trade in it internationally (and with the negative IMF's position it's unlikely) it can kind of become dead weight. Foreign reserves need to be currencies that other countries are very willing to use for international trade, loans, and other similar things. I don't think Bitcoin has reached that level of acceptance yet.

I do not think this information is accurate. The dollar has decreased in the share of global reserves for several reasons that may not be related to inflation, including China selling a lot of US treasury bonds to strengthen its currencies, or the movements of the Japanese Central Bank, or more countries diversifying their investment portfolio, or deals selling oil for non-dollar terms and their impact. On the price and many reasons that may not be directly related to inflation.

The dollar's status as a global reserve currency will not change unless a world war or major changes occur, which will not happen in the next few years.

cryptocurrency No, Bitcoin for now No, but there is a good chance that Bitcoin will be a currency for international trade in the future.

Proper diversification of the world's reserves is very important for the successful work of any state. Keeping everything in one basket is, as practice shows, a wrong decision. But it is also impossible to bet only on bitcoin because of sharp fluctuations in its price. Gold, silver and other similar assets change in price not so often

I didn't know that the dollar had lost its value by 98%. But if I'm not mistaken the pound has lost a lot of its value against the US dollar, in 1940 the pound had an exchange rate of $3 against the US dollar, and now it only has a third of that value.

I do not agree if bitcoin is made a state reserve because its circulation in the public will be greatly reduced and the vision of bitcoin as a currency will be increasingly difficult to realize. I would prefer if bitcoin was used as an alternative currency for cross-border transactions.

There's indeed going to be diversification in global reserved asset with bitcoin in cryptocurrency, the only difference is that the people cannot compare this with the ones happening with centralized institutions and government whereby they made use of the physical asset and natural resources, bitcoin in cryptocurrency is fast gaining more attention in these global economy and served as a reserve digital currency and global asset individual persons can invest on, hold and have a secured future through it investment and their financial economy will have a total turnaround, what the people have is bitcoin while the government is gold, fiat and other physical investment assets.

With all around the world leading the changes being a millennial and some people wanting crypto, it wouldn't be surprising that Bitcoin would be able to keep up with Gold. It's all about the demand and how much it could bring to the economy and become the leading asset for people, then it would probably continue to increase in price as well.

I see the decline of the US dollar. It is indeed harmful. Numbers don't lie. Both the inflation and the decline in the world's reserve share are clearly visible. You're also correct regarding the diversification. With the situation, it makes sense to take this action. GOLD. Always a wise decision. Its consistency defies comparison

I understand that, considering its decentralised structure, it can be alluring to view cryptocurrency as a worldwide reserve. It's true that there are centralised coins that may be controlled. Still, there are problems. Not only am I concerned about the volatility, but others are as well. It's about stability, not just about having value. What other coin might be as reliable as bitcoin? Even with their dollar peg, cryptocurrencies like USDC and USDT are susceptible to market volatility and regulations. Therefore, the only choice available to combat the inflation of fiat money is Bitcoin. Other options? For brave investors only

In my opinion, it would be very difficult to consider crypto currency as a global reserve asset, with its high fluctuation nature, this will make the stabilization of the value of the asset uncontrollable, secondly, crypto has a cycle and is quite serious with global economic sentiment which can influence it.

It is possible to diversify it at a certain time, such as the preparation of the bitcoin bull market, countries that do this will definitely get more value and help the growth of the value of their money with bitcoin, the only problem is that they have to wait to get it, while it can be used as an asset whose activity is quite fast in global transactions, such as paying debt or whatever it will be very difficult for that. And unless they do it quickly to transact to avoid a decrease in value.

You need to understand why do we need to keep a global reserve and why it's important.

A country keeps its reserves to do cross border transactions. If india wants to trade with china then they will do that with global reserve. They will not use their native currency if there isn't any agreement between those two nations because it is not widely acceptable. If india accepts Chinese native currencies they will not be able to use that to trade with other country. They don't keep their global reserve as savings. This money keeps circulating and that is why we saw some countries losing their reserves when other gaining it. If inflation getting higher they will still keep USD as their global reserve due to its acceptance. Some countries wanted to change that but USD dominance is still very strong.
 

The Answer would actually be No if actually the global reserve holds only dollars, but I can tell you that most of these nations do not have there reserves only in the dollar currency even the US who owns the dollar diversified them into gold and other precious metals but with Gold been the highest hold, so if it is so for every reserve then the hit wouldn’t be felt that much.


I wouldn’t say we the word cryptocurrency because I don’t want to generalize because I think aside bitcoin no other coin is worth of been used for investment purposes talk more of been a reserve. Bitcoin could have been a perfect answer with the way that it doesn’t have any backing of a countries currency and it is universal. But a reserve is is something that you can easily use in exchange during international trading with bitcoin volatilities and probably like of manipulation many of these countries wouldn’t want to accept it. And a country holding junk of it in reserve might have to find another commodity or currency to be use for trading everytime just to beat the volatility of the bitcoin.

A bit off point I would say if it is an individual looking for long term investment then bitcoin is the perfect solution for that

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?