Topic: Is Bitcoin the best reserve asset? (Read 488 times)

It is true that bitcoin is volatile but its value grows in a period of time and if that would be the case, I think there are a lot of other countries that would follow that and do the same putting bitcoin as a reserve asset making the value of bitcoin higher. Gold is a reserve asset too but if you will be looking at it, is not that stable too.

I think any sensible investor would have a range of assets and not just limit themselves to one. I'd feel much more comfortable sleeping at night if my portfolio of assets covered property, stocks, precious metals and cryptocurrency. They can also do a variety of different jobs: You can live in property without having to pay someone elses mortgage and you can get a dividend income from owning stocks (that doesn't require selling them in order to "cash out" when you need fiat currency). Some people do get through life having all their money concentrated in one asset, but there's a reason the phrase "Don't hold all your eggs in one basket" exists.

Gold is not seen as a "reserve" asset but more like an investment in itself, bitcoin could be seen as an investment as well with the same logic but there are slight stuff that could make the difference between the two. For example when you have a huge gold reserve instead of fiat, it takes longer time to process and exchange it back to fiat, but when you have bitcoin as reserve asset you could exchange it to fiat in a matter of few hours at most which allows these huge hundreds of millions of dollars worth companies to be a lot more nimble and quick with their trades.

This is why the nature of bitcoin allows it to be an investment but also allows it to be something we can cash out and get out very quickly if we want to that makes it the best reserve asset out there.

Yes, I have been a fan of crypto for a long time and today I really see that financial hedge funds need Bitcoin to avoid inflation.
So the predictions about the far future of Bitcoin are coming true and the world will soon use blockchain technology as well as cryptocurrency to solve economic problems.
Hopefully MicroStrategy, Grayscale, ... will bring a more positive perspective to everyone in the world about Bitcoin and crypto in the future.

And yet there are people, companies and even countries, like in the case of Venezuela, that are doing exactly that, the truth is that no one really knows what it is going to happen, it is obvious we trust that bitcoin is going to be fine and do great during the next decades but that is still a belief and not a fact, so it is possible that all of those that are using bitcoin as a reserve asset are being foolish but it is also possible they are the ones that are correct and everyone else is wrong, after all it will not be the first time a minority of people were correct while the majority was completely wrong about a subject in particular.

not really to me in my own opinion  because asset like real.estate property are way better than bitcoin. Bitcoin is good no doubt about it but its value is highly volatile so meaning whenever you need the then you need to wait foe the right time to withdraw not getting losses. Though same process will be in real estate that you still need to wait when you want money by selling it. But the price of the property never depreciates and there are better ways that property could be sold like use of finacing services.

Bitcoin is better than gold in every respect Bitcoin is the strongest form of money and the best reserve asset and the best securities asset seen before. the demand for Bitcoin has doubled from gold at present offshore banking, company formation, asset protection and related bitcoin best ICO country Cryptocurrency Bank Circle will be fully supported by the Federal Reserve of the United States Bitcoin is operating all over the world and will be known as the gold digital currency. The risk will be less and it will be easier to spend.

I think if you buy now, the answer is definitely no. unless you have unlimited money, you can buy it and keep it until any time. and that won't guarantee anything.
Apart from bitcoin, maybe in my opinion gold can be used as a good reserve asset, because the supply of gold in the world is decreasing day by day. The point is back again to the calculation in terms of managing assets owned. because even if someone owns any amount of bitcoins, it's still useless if you don't know what to do with it.
   so not only armed with capital and intention, but knowledge in managing assets must also be improved. small examples in the family are the same. and not much different.

Bitcoin proves to us as one of the best asset that you can consider to hold aside from gold and of course Bitcoin is better simply because its decentralized and we have the freedom to use Bitcoin without the approval of the banks or even the government. I cannot totally say that bitcoin is the best asset because we all have different risk level of tolerance, and the volatility is very high that no one can guarantee that Bitcoin is the best.

Yet Bitcoin is still an asset that we can hold still for long years?but yeah it is not comparable to Physical things specially metals because those are the most needed for developing countries while Bitcoin remains as online payments.
But better to have both Gold and Bitcoin so in case there  comes bad  in one at least another is our next option to use.
But i'm sure gold will always remain a best asset in practicality.

We all agree that we prefer bitcoin or cryptocurrency compared to a fiat currency. Here we could gain considerable profit by just buying or investing our money in it; that is why bitcoin is suitable for long-term investment and as a reserve asset rather than other investments such as gold and oil. The only problem we face in having bitcoin and other cryptocurrencies as an asset is its volatility that it is hard to say when it will increase or decrease.

I also prefer bitcoin or any cryptocurrency compared to fiat currency, there is a high possibility that I could earn grom cryptocurrency compared to fiat, even though we cannot remove the concept of risk in cryptocurrency because of the volatility of it, but that feature makes the cryptocurrency uniques and better than fiat currency for me because it is really good for a long term investment and we could earn little by little as we know the rules of "buy low and sell high".

Cryptocurrencies and precious metals are completely different to be compared to. It's hard to say that Bitcoin can serve as a better reserve currency than gold.

Investment is not only a source of income, but is a long-term turnaround of money. Ten years ago, gold was one of people’s investment options,
but now with technological advances, Bitcoin is the choice to invest.
Although bitcoin is considered a fairly speculative asset compared to gold. But we know the advantages of bitcoin behind it have advanced technology that is blockchain that outperforms gold as a long-term investment asset.
This proved that Bitcoin was mass adopted by the world community, so more and more people know and use Bitcoin.
Regardless, we can only speculate on bitcoin or cryptocurrency, nothing is certain, we will never know whether bitcoin will become extinct in the future.

it cant be the best if theres dangers in it . i could say that bitcoin is better while gold can be nearly the best because the volatility and the price is just right .

disregarding the risk . btc can help us avoid spending our money when we already convert them digitally  but if we include the risk , we can loose the money that we expected to save for a long time . idk if theres a legit digital gold investment that can work just like btc but i heard there are projects before that are back by gold . maybe they are stable too and at the same time still profitable

Bitcoin can be considered as the best reserve asset but the most dangerous at the same time. Personally, I think it's better to convert your assets in bitcoin when you are highly confident that you won't touch them for a certain time and in case something happens, you have another plan to follow in case bitcoin's price falls dramatically.
Otherwise, if everything happens positively, then it can radically change the fate of the company. Reserve, that you weren't using of course, can increase significantly in USD value (USD because finally we convert bitcoins into USD and it's the most widely used currency).
Imagine: Got 100K USD in reserves, price went up to 10x (why not?), got 1 Million USD. With that 1 million, you can skyrocket your business, it's like an unexpected rush of money, donation.

Why are you comparing Bitcoin with assets that has been around for hundred years?
If you said for a decade I would have said better, because for the last decade now Bitcoin has been increasing  and as time goes on it keeps getting bigger and bigger and if you have been the holding the asset for long now you possibly must have gotten something from it.

But, you telling me to take and move it forward a hundred years, seriously? If I am to make that kind of calculation with Bitcoin , which hundred years am I moving to? Bitcoin, but the point you’re making here is what I don’t get.

The crypto adoption has becoming quite a interesting topic for everyone and many countries as well as institutions are making rules and regulations to adapt cryptocurrencies in their fiscal systems.But most of the companies like MicroStrategy, Square Inc has invested in Bitcoin and keep them as reserve assest which is good thing but only with the prospective as investment opportunity that will yeild them profits in future when the price rises but there is risk of volatility in this types of reserves due to price fluctuations as they are not backed by stable coin in the market.Moreover many people think btc and other alts as store of value like gold but it was built by Sathoshi with a different perspective of coin that will change the traditional methods of payments with decentralised digital revolution for the world which has many other functionalities in the market. MicroStrategy has gained over 40% of profit after it has invested in Bitcoin with over 39148 bitcoin in their reserves with increase in prices as per the reports as prices plunged over $14 this week.So weed need to understand the basic use of this coin and when we will use it in proper way the prices will automatically increase with increased demand and limited supply of 21 million and you can gain profits on them.

I can't believe it has come to this level for bitcoin but it is definitely the best reserve asset right now. I can't believe it because I have been here for a very long time and I have seen bitcoin from disregarded and I have seen it become reserve asset for a lot of companies for hundreds of millions of dollars. Literally from paying 10k bitcoins for a pizza to paying hundreds of millions for 30k to keep a huge companies cash reserves in bitcoin, that type of change was not something I would have even dared to imagine.

The companies who bought bitcoin in bulk at 10k have already made 40% this year and it has been like just 6 months since they told us they did this, if they bought even under that price they may have profited 50%+ and that is insane to think about how much of a profit for a regular company that must be.

No, that is not enough for bitcoin to become a reserve asset. It needs to be stable in a large amount of time. Look at how bitcoin performed in March and April, the price was reduced to one third and suddenly it was pumped up to $9000. And right now, the price of bitcoin is $14000. We are nearly reaching our previous peak and that is a good sign for bitcoin. But becoming a reserve asset is way too beyond its purpose and it might take several years for bitcoin to be adopted regularly. As you can see, there are many people who do not like bitcoin and without their support, it is hard for bitcoin to make a dramatic impact on our economy. And companies which consider bitcoins as reserve asset does not strong enough to have their own speech

Don't expect in bitcoin too much. One day it might be replaced by another digital asset which is stronger, better, and safer. Just try to accumulate bitcoin and sell it at a good price and always remember to support the blockchain technology with your own heart