Topic: What would happen if BTC were to be adopted as a global reserve currency? - page 2. (Read 344 times)

Bitcoin adoption takes many forms, legalizing its use for the people, trade relations with other countries, etc. So which one should be suspected? Maybe, if they have certain regulations that are unfair, but I can't imagine that and draw a conclusion before there are case examples.

It won't be lessened, they've got fractional reserve banking, they can just buy bitcoin using cheques and papers that says they paid this amount, and they'll be able to buy billions of dollars worth of bitcoin because most of them are tied to the government so they'll definitely going to get the biggest benefit of them all and they'll do some marketing to have you sell your bitcoin to them, that's not the truth yet but I believe that banks will be doing anything at their disposal to buy bitcoin if it ever becomes a global reserve currency.

Bitcoin has good adoption growth and will be accepted legally in more countries. Some small nations will make Bitcoin legal tender like El Salvador and Central African Republic but to become a global reserve currency, it is impossible or if it happens, I won't expect I will see it in near future.

[1] https://coinmarketcap.com/legal-tender-countries/

From Gold standard to USD. standard, it takes a long time and to achieve Bitcoin standard globally at governmental scale, it will need many years.

The bullish case for Bitcoin.

The Bitcoin standard: The Decentralized Alternative to Central Banking. It's 312 pages and you can download it from this link https://drive.google.com/file/d/1A2S8PK4JiYSekQZQs7kEw-BkSOc0j_ei/view?usp=sharing

And that's it. I don't see the point of thinking about what would happen if what will never happen were to happen.

It was a question that made more sense in the early years, until perhaps a couple of cycles ago, but today it is clear that Bitcoin is not going to be used for small payments and that governments are tolerating it to the extent that they can control it. Add to that the number of people who use it by buying it on CEX as an investment, and not as a currency, and we will see that there is no way it will become a global reserve currency.

Actually some of them are already accepting Bitcoin and make it regulated through the online wallets from their country. Some of them are really into it and probably investing on buying it, it still depends on the international government if other countries will accept it too, but so far most of them doesn't know what will be the effect of it in their community. For me, as a trader I wouldn't be alarmed about it as if they regulate a trading site it means that it's safer than those who are not registered.

Bitcoin will stay be decentralized no matter what so they can only regulate the wallets or companies that accepts Bitcoin (they can't really do anything directly to Bitcoin). It's either they adopt it and regulate it or ban people from using it (which will not stop them from using it, as it is decentralized).

For me, the major benefit just in case it happens is the decentralization of economic power, by this, centralized platforms like banks or governments will be lessened as Bitcoin is already here that no one can control.
Another thing is the regulations, we all know how Bitcoin is really strict and hot in the eyes of regulators or governments, so expect more issues will come from governments.

If Bitcoin were to be adopted as a global reserve currency, it would have a profound impact on the global economy. For one, it would likely cause a significant increase in the price of Bitcoin, as more and more people and institutions would need to hold the cryptocurrency in order to conduct international trade. This could lead to a "flight to safety" effect, where people and institutions around the world start buying up Bitcoin as a hedge against inflation and other economic risks. This could cause even more price appreciation, as well as an increase in demand for Bitcoin mining and other supporting services....

global reserve currency could lead to the decentralization of the global financial system. This would mean that governments and central banks would no longer have the ability to manipulate the value of their currencies or engage in quantitative easing and other monetary policy measures. Instead, the value of Bitcoin would be determined by the market, rather than by central authorities. This could lead to greater transparency and stability in the global financial system, as well as increased freedom for individuals and businesses. However, it could also lead to instability and volatility, as the value of Bitcoin is notoriously difficult to predict.

with the increasing adoption of cryptocurrency and also the increasing price of bitcoin, it is not impossible that in the future bitcoin will become a hedge for the value of the country's fiat currency as a substitute for gold, but all this will be possible if the circulation of bitcoin remains at 21 million and does not increase or decrease.  For now, large-scale adoption will cause bitcoin fees to increase and it will still be a tough job for anyone who actively uses bitcoin, especially for transactions.

Many countries remain wary of digital currencies, viewing them as potential tools for funding criminal activities within their borders. This skepticism is a major reason why they resist accepting Bitcoin as legal tender. Achieving global adoption of Bitcoin seems unlikely, as some nations will persistently oppose the idea, indifferent to the potential economic benefits it could offer if embraced.

Back to op.If Bitcoin becomes a global reserve currency, its value is likely to rise due to the limited supply of only 21 million coins. This scarcity may make Bitcoin more valuable than gold. In the future, owning Bitcoin could be a luxury mainly for the wealthy, given its potentially high price. You should also acknowledge that widespread acceptance of Bitcoin as a global reserve currency faces too many challenges. Achieving this would necessitate significant changes in the global financial system, and predicting the exact outcomes might be impossible.

Adoption can be done by the government by them relaxing bans on bitcoin or going further to add it to some of the countries legal tender which is the most hard part. The decentralized system which bitcoin is actually seems to pose threat to bitcoin censorship and they will never want to let that go.

This will affect bitcoin adoption rate as it will grow in large number but the question will be whether the maximum supply of 21 million bitcoin be ok for everyone.

Some counties have already adopted Bitcoin but they're countries that aren't strong financially, I have said this before that no country that are financially strong would want to give up control that they get from their local fiats to adopt a decentralized currency that they have no control over, in the future things like this might be happening more often but for the meantime many nations will be discrediting the cryptocurrency industry just to make the fiats currency strong but it won't work.

People can't be deceived forever, Bitcoin is better than the current fiats system so if Bitcoin was to be adopted as a global reserve currency, things would be different than what it is but that won't be happening soon. The elite nations that are enjoying the flaws of the current currency system won't want that to change, they would want this to continue until it's no longer beneficiary to them.

It's going to be a long process before Bitcoin can be declared a globally reserved currency but for it to be accepted as a alternative to fiats, that's just a matter of time. The more the fiat currency keep losing value and importance in the society, the quest for a better currency will be ignited and Bitcoin would come to the rescue.

Don't dream of the government adapting Bitcoin instead of their fiat currency. Its unrealistic to adapt decentralised Bitcoin by a centralised government. They might allow you to use it; it's not a Bitcoin adaptation, actually. But yes, El Salvador has been adapting Bitcoin. Even a few more governments will adapt Bitcoin this way, but Bitcoin won't be a reserve currency anyway. Because Bitcoin is highly volatile, that will always affect the value of the total reserve. And Bitcoin is always a digital currency, whether the government accepts it or not.

Some nations are already inclined to adopt Bitcoin, some maybe take BTC officially as legal tender while other nations accept it as mode of payment.  So the question to the question is yes, government will adopt Bitcoin if they find it useful or beneficial for the country's development.


No, I think it is normal for governments to accept Bitcoin and other technology once they understood it or implemented regulation that can prevent exploits and negative stuffs.


Just look at the picture, in a free market, if there is more demand with a fix supply, the price of the item will definitely surge.  So first hand, the price of Bitcoin will surely incerease.  Traders will have a great time raking profit and individual traders will have a more secure asset to trade because Bitcoin liquidity will strengthen.  Aside from that with approval of the government, many people will be encouraged to engage in Bitcoin market thus making it more livelier than before.

Adoption of Bitcoin is different from using it as a reserve. It's no longer news that some countries have started legalizing Bitcoin, but the amount the government owns is so low due to risk considerations. While they have most of their foreign reserves in the USD.

I don't think this is necessary as long as they make the purchase public. And of course, they would have seen the light in Bitcoin before they go on such a journey. However, making Bitcoin a substantial reserve is too risky and I don't think any country would do that. They might own a small amount of it, but not totally depend on it as the nation's reserve.

The adoption of Bitcoin by governments means more demand and appreciation of the market price as this will add to the market capitalization. There is no way the price of Bitcoin will not reach the rooftop if this happens. However, that is not possible as Bitcoin is not enough (max. of 21 million circulating supply) to go round and the risk of depending on it is too high for a nation.

I think the context to adoption needs to be redefined because, I don’t see how a government would ever adopt Bitcoin and dump its traditional fiat currency which isn’t just a media for exchange but also serves as a national symbol.

Adoption is possible in years but, it would be in the context of recognition and legalization rather than some complete adoption for an overall currency.

I don’t see any conspiracy theory to that on the part of the government and adoption. The power would always be with the people as that’s the nature of Bitcoin. A consensus of the people and it would continue to be so. Ain’t no way the government would be taking that from the people as that would completely undermine the idea of decentralized finance.

What would be observed is a boom yo traders as, we would have more people pouring into a scarce commodity.

As much as I'd really love for this to happen, it won't. That's why I wouldn't even want to imagine it since no government would be interested to make it a reality as they'd won't have control of the somewhat reserve currency to print it brrrrr at will. But if that were to be the case, I can say for a fact that the days of bitcoin being heavily volatile would be over. How can a reserve currency do —40%  or +60% net in 12 calendar months? It would heavily affect the reserves. This isn't what we want Bitcoin.

It could be but certainly a long process prior to that. And let's say if it will happen in the future, raising eyebrows and being suspicious might not be entertained anymore. The Government of the Nations is probably setting a plan for it, but it's still uncertain if that plan will be put into action. And if ever it gains positive feedback, then it will create a more positive market because of the sudden mainstream and adoption.

However for now, I still see only a very slim chance for it to turn into reality.

Not many government till date have shown full concern on whether they will have a full adoption of bitcoin soon. Those that are not against it are on neutral stand to see what happens of the countries that will first adopt the cryptocurrency as a legal tender.

The government won’t just make bitcoin a legal tender without them haven something beneficial from that. Thinking of that, we need to raise eyebrows and be suspicious of their verdict if they allow bitcoin as legal tender.

The crypto market could be in a state of chaos for a while as regulations which will be coming from the government will either make it strict or friendly to them. On what the basis of the regulations will be is what will determine how the market traders will react to that change.


No one is thinking of a negative outcome if the government adopts the use of bitcoin as legal tender globally but what happens after that is the hidden reality that people are yet to know and will be very observant to look out for if there’s a step to take action on that. The governments that are not following the same part as El Salvador and Central Africa Republic are just scared and don’t want to fall bait of anything.

The developing nations are more careful of that since the developed nations they are looking up to haven’t taken such steps for the adoption too. Bitcoin adoption continues to rise despite all this, one day government will either allow it or put some regulations on them on its use, I think that’s what will likely happen in the end of all this.

I think that if Bitcoin were fully adopted globally as the world reserve currency society would definitely look a whole lot different. I think what I honestly would hope for is that we could fully adopt straight bitcoin in stores and online for all goods and services, but also have a cash option for convenience purposes because lets face it cash is still king. That is honeslty a world though that is completely at odds ends with eachother and not quite realistic. Cashless society in the future is what it looks like.

It's not that easy, from the list of countries that has adopted Bitcoin as a legal tender you would notice that they are developing (also called underdeveloped) countries their currency and economy are struggling or has low value, Bitcoin is like a new hope to their citizens and crypto-currency would be a better way to have a more effective currency for their citizens, but in the developed world their is the battle of Ego, control, power, the government wants for authority and they can do that with the Fiat system but it becomes more difficult with crypto-currency.