Bitcoin Forum

If there would ever be need for a global reserve currency Bitcoin narrative and activities would pop-up, since a soverign-free, algorithm-based alternative would be more stable and trustworthy and perhaps this would be Bitcoin. This goal would soon be actualized especially as Bitcoin is not too volatile and is widely progressing to be used as a universal settlement token for trading, to be used for contracts even between countries, organizations and persons etc.
I believe in the nearest future businesses and sovereign powers will give up their preference for Fiat, and when this happens it would result to Bitcoin earning general global recognition as an international trading currency that embody trustworthy transactions.

I completely agree but only if you take away the reserve. Bitcoin as a global currency. Why does it have to be the reserve currency when it has all the necessary features for a transparent, borderless, and decentralized global currency? And which currency should be the main one? I reckon it will be the US Dollar or the Euro or the Yen? Why does it have to be them when they are lacking in all of the aspects mentioned?

Bitcoin will never be a global reserve currency, and is cannot be controlled by governments or the elite. It will become a global store of wealth, and one of a range of assets that can be used as securities. Watch out for fireworks when the banks start to rehypothecate when Bitcoin is in a portfolio. The volatility will cause havoc when they get things wrong.

Yeah you're right on point, it's convincing enough that Bitcoin deserves it all not being a global reserved currency but the global currency itself... kudos

The world's reserve currency right now is usd. Even other currency are having a hard time compete with usd. So bitcoin being the global reserve currency is quite far from reality. Even other countries won't agree with that. It's more realistic to think that bitcoin can be an alternative currency for other countries, but not as a global reserve.

I don't know if did is just me who think of this because for me, the thoughts OP provided about bitcoin being used around the world as a means for investment and transactions business by business is already done true. We all know that the simple ICO we just think of being small projects are somewhat big actually. The fact is because we didn't see their site and company but it is considerably a large business with serious transactions so with bitcoin, it is already implemented.

Bitcoin will not become the global reserve currency as long as the powers that be still have a say in the financial system. In addition, there is no possible way bitcoin could handle the nominal of any significant percentage of world trade. to get anywhere close to this, the nominal value of a single bitcoin would have to be in the hundreds of millions of dollars. that would raise the value of the block reward to astonishing levels, and would require that mining costs would have to rise to accommodate.

I agree that Bitcoin is gradually becoming accepted as a legitimate store of value, like a digital gold. The world is seeing that it is secure and outperforms all other investments. I think it will not only retain its value over time but it will continue to gain in value.

I believe that Bitcoin is the perfect candidate for the global reserve currency or better said for a universal accepted currency in all countries of the world as it is decentralized and the supply is so limited. In my opinion in the event of this happening the Bitcoin price will have already touched incredible "heights" sort to say. And by incredible I'm referring to millions of dolllars/unit, but at that moment I suppose we won't value things based on dollars or any fiat currencies anymore.

I hope it will not be a disruptive currency, I hope it will be the currency of the world, it will most likely happen but maybe not with bitcoin, but with some internet money. In Sweden, this system is slowly being introduced, people are changing their money for internet money, which can only be good, it's easier and less hassle about paper money.

so it will be centralized ?
oh well whatever , nowadays , people using bitcoin required KYC from exchange to take to personal wallet.
and i am sure , to take a place like global recognition , it will be fully KYC for who joining it.

Sure you could have a world bank handling bitcoin loans/escrow, but forget about fractional reserve practices... One of the reasons for reserves is having collateral when getting in debt. With Austrian economics practices, you would avoid getting in debt in the first place.

Of course in addition, or rather than, gold reserves, countries can also buy bitcoin if they wish. Its just another asset on the market, at least for that intent and purpose. If you take it into a world level, i fear those that control this reserve would have too much power, and its not really needed, especially now that we would be abandoning fractional reserve practices and can instead start using our own savings.

Sovereign powers and business can only embrace Bitcoin when they study and understand Austrian economics. Until then, they will always fight it because they fear deflation over the misleading dominant school of Chicago dogmas in the economy.

There is no doubt that Bitcoin can easily become a global reserve currency  but the only problem which might hinder this is how people understand and know bitcoin. The entire people in both the crypto space and the world have different understanding of what bitcoin is.  Some people see bitcoin as a digital currency  and others see it as an asset. This misunderstanding about bitcoin will be the only reason to prevent it from becoming a global reserve currency.

Bitcoin isn't worth nearly enough to be any country's reserve currency, much less a reserve currency for multiple countries worldwide. 

The USD is worth how much in total?  It's in the trillions I think, where as bitcoin's market cap is only in the billions and that's fluctuated wildly in the past 10 years.  That volatility alone is reason enough for it to not be a reserve currency, and any country like the US could easily buy all of the circulating bitcoin if they wanted to.  That just wouldn't work, though.  What would they be cornering the bitcoin market for? 

Plus I'm sure the taxpayers would revolt against an idea like that anyway.  You need a stable currency and one with enough of it to go around if you're a country and are holding cash in reserve.

It is still volatile.
It will be a long time before we could see small pumps and dumps to take part.

Bitcoin as a reserve? No. I dont believe that yet.
Just looking at how governments are against on how rich people could hide their money to avoid taxes with the use of bitcoin make them worry so much.
They want that money for them to eat it.  ;D
So bitcoin is what for them? A wall for them to suck more money to the people.

But this means that the currency around the world would be limited isn't it? If the currency around the world is limited then how can any economy grow? As it would just mean that one will always profit at loss of the other person. Economy won't be able to survive as things will get cheaper everyday creating a deflationary bubble and thus economy could implode. Moreover considering volatility of bitcoin it's much more problematic as to how things would work in practicality. How can we even think of such an economy without answering these basic questions.

will have an adverse effect if the global reserve currency is not within the speculative reach of central policy and is always in a high level of manipulation, in economic sovereignty this is not justified. Don't forget also about the potential of bitcoin as a currency in the global scope, this will clash with the principle of the existence of fiat just because of uncontrolled BTC circulation.

I think bitcoin was the best digital currency today when it comes to global we could easily make a transactions in bitcoin easily around the world using our bitcoin wallet I think overtime the bitcoin will surely take over the world with this unique technology, today I honestly think that bitcoin could be a global currency and per country they still going to have its own currency since it is the currency that every country can regulated. Bitcoin was decentralized so I don't these countries could be regulated and control the price of bitcoin so I think it is better like what it is today a global currency or an investment.

No country would keep bitcoin as a reserve currency in its current state.

It's highly volatile, susceptible to drastic price changes and manipulation albeit the regulation kept in place to ensure that no such thing would ever happen. Perhaps in the future, one country might take bitcoin as a part of its hybrid reserve currency system but for the meantime it's only an idea worth pondering upon.

Having said that, perhaps some country might start creating their own version of bitcoin to use as a reserve currency or in replacement for their paper and coins which has proved to be costly over time.

A country can regulate BTC when its using the coinbase like technology which we can send BTC to email addresses. But as of now the only we can see are countries releasing digital fiat which is also centralized, who knows what government could do to regulate crypto. But certainly they will need a technology to regulate crypto holders.

Bitcoin will not be a global currency reserve but can be a global currency.

Why not?

Since the dollar is no longer backed by gold, central banks no longer have the choice to obey the law of the dollar, they can't even convert their money into gold, since there isn't enough of it anyway. The US has mass printed banknotes without a reserve, keeps half of the international payments in dollars and continues to spread its dictatorship.

The USD purchasing power is failing and will continue over the years. Who wants a currency that worth nothing?

https://live.staticflickr.com/3371/3419067050_d3fcccb9e4.jpg

The US debt seems unstoppable and it can only lead to inflation

https://s.marketwatch.com/public/resources/images/MW-GF810_1_tril_MG_20180320102507.jpg

But now there are many countries trying to get rid of the dollar and its monopoly. We see some examples recently with Iran, France, China,...
What couldn't we do the same, as citizens, with our own currency (Bitcoin or whatever)?

Yep why not.  There is nothing more valuable than BTC today which is more rare than gold as well and we all can also acquire. Any government can set up their own mining farm including banks so that they can get as much as they want and release fiat out of these BTC they hold. This is going to be more transparent for the world to see the reserve of every country in the blockchain.

 

Yeah, I agree with you, although all hope like that, including me, but here I am talking about the fact that it is still not possible to achieve bitcoin as a reserve currency, there is no compelling reason for that, there are only risk reasons.

Btw, how can a country be able to make a replacement currency for their fiat and the reserve currency is better than its fiat currency? wouldn't the value of the reserve currency they made be a reflection of the previous fiat?

Well, Bitcoin is still extremely volatile if you compare it to a solid fiat. That leads to the second problem: why would businesses turn to Bitcoin if they're fine and used to fiat already? And as for the global reserve, global currency and anything similar - until the scalability problem is tackled, it's just impossible to allow many people to join the network. It will be overloaded with unconfirmed transactions and the fees would skyrocket which would make Bitcoin even less attractive. Bitcoin is already a lot of things, and it's very valuable (not only in the financial sense). But what you're saying sounds like utopia.

Soon? It's been almost 11 years, why didn't Bitcoin become a global reserve currency already? At this point almost everyone has some idea about what is Bitcoin, including banks and governments and companies, and Bitcoin was usable since the first block, so there was a lot of time to start adoption it, yet it didn't happen. And at this age new technologies get adopted very fast, just compare what we had in 2009 to what we have today.

Bitcoin would be one of the best digital currency if the acceptability would be positive towards people, Not only that but also another Cryptocurrency is the little bit responsible for this crisis, the last year 2018 and this 2019 are not producing any positive thing for this platform, A lot of scam project brought to us a lot of negative aspects, I believe that Bitcoin should be accepted through the whole world and it should be used for the whole purpose of monetary aspect, I hope it's just a matter of time when Bitcoin would get accepted as a global reserve currency.

if you live in country A then sell money in another country the value can be big or small, if you have US dollars then selling it in some countries might be high in value, but bitcoin has the same value for any country, no different, I think bitcoin could be a reserve currency because of its value, it's just that there are a lot less than this bitcoin and need time for better development in the future even we don't know about it, just waiting for global recognition that bitcoin can be a tool transactions or payments for international trade

11 years is not a lot. And first few years don't really count because you can't treat bitcoin as currency until it was traded on exchanges.
Also you can't compare bitcoin to any technology like smartphones. Smartphones started around that time (2009) and evolved extraordinarily in 10 years, adoption of smartphones is very high too. But smartphones were nothing revolutionary. Smartphone was just an upgrade of classic mobile phone. So it's normal that mass adoption happened so quickly.
Bitcoin IS revolutionary. There was nothing similar to it before. And it takes more time with such technology. Another reason for slow adoption is the size and power of industry that bitcoin is competing against - the banking sector. They spend billions to promote credit cards, bank accounts etc. so their services are convenient and people don't realize the need for alternative in the form of bitcoin. But they will. However it will be too late to benefit from being an early adoptor.

Entering the world of cryptocurrencies, you probably can't help but be aware of bitcoin. Many people think of Bitcoin as a global reserve currency. Monetary competition may also be a consequence of the political start to exaggerate the economy. Some have asserted that there is "another opportunity" in which Bitcoin will be a great reserve currency. However, I think the global reserve system will change completely over the next few decades.

I think government all around the world will never have a concent on bitcoin as global reserve currency. See euro for instance, its controlled by EU body. There is no currency till date that is not controlled by central bodies. Bitcoin will continue to live and dominate because of its strong community.

Bitcoin will run in parallel with the centralized currencies but it cannot become a global reserve as centralized governments and unions will never let this happen. Unless there is a new country created by bitcoin investors and donators by buying some barren piece of land and establishing a country with bitcoin being its central reserve. There are possibilities that countries will come up with their own digital currency rather than having bitcoin as a central reserve or national currency.

I think that bitcoin will be better than fiat because it's so strong and the community now is really so huge and it will be bigger in the few next year as well as bitcoin is getting stronger by the time. The good thing is that bitcoin isn't controlled by any govemerent in the world like other real currencies.

BTC may be unofficially the universal currency, yes. But we are not entirely sure about official reserve currency designation any time soon.

Instead of accepting it as a currency the government will create their own coin since bitcoin is a threat for their official currency, and there's no reason for them to adopt it at least for now.

All the government now regulate bitcoin as an investment tool and even some country ban it for using them as a payment method. Well, It takes many year for one country to embrace the bitcoin as a currency.

This is indeed possible in the distant future. But first, Bitcoin needs to overcome problems in scalability. Slow transactions would always be a hindrance for its adoption, especially in handling those microtransactions. Though it can always go with the help of other faster altcoins such as Ethereum and XRP, and Bitcoin would be the one handling international, inter-country macrotransactions.

States do not need bitcoin and other decentralized cryptocurrencies. They can allow the circulation of cryptocurrency on their territory, but they will never actively support it. Therefore, at state levels, bitcoin is unlikely to ever be used as a global reserve currency. States for these purposes will issue and use their own stable coins.

As previous stated which i also agree is the controversial meaning of reserve within a decentralized currency.

If you think on that, for it to become a reserved currency one bank must hold it within their boundaries thus becoming centralized reserved currency.
Bitcoin will never become such thing as it's decentralized - not controlled by 1 entity exclusively.

What could happen is that there could be some network reserve system that would be decentralized and allowed for ALL as ONE without exclusive control entity to be used for every bank.

It might be possible in the near future but they should create a cryptocurrency that is not bitcoin and that is not decentralized. As of now, a crypto global reserve currency isn't created yet and with cryptocurrency, it could be possible but in a sense that the currency they should consider should be centralized. We don't need banks but with a strong foundation in codes and blockchain then it could be possible. Plus, with the support of large scale world alliances, making the very first crypto global reserve currency theory might be possible.

I don't get it why we need a reserve currency in the first place. That sounds absurd to me. It is not anymore a currency if it is kept as a reserve. When shall we make use of it? After the current currency is dead or has failed? Well, it might take 10 years before it happens. And are we sure that by that time that reserve currency is still the perfect currency to replace the old one? It could also fail if it was the main currency. The reserve should be gold and other precious metals but they are not currencies. They should just back the currencies used.

I agree on it. We all know that the changing world becomes digital based and financial market is fast-changing as well. People are very aggressive and always want fast and efficient transactions by the influence of internet. In this way we are really going into digital currency in the future and slowly happening today. That's why its really possible to make bitcoin as a global reserve currency.

we do realize that the needs of the digital world are increasing, people are slowly leaving the traditional way and turning to technology. I also believe that bitcoin can be an alternative for financial transactions, and as long as the growth of technology continues to be developed, the position of bitcoin has the potential to be a digital asset for people's investments or financial transactions

I also accept that the demand for technology around the world is increasing when the society is so developed, people always want something faster and more efficient, instead of traditional tools but the development of new technology is always based on the old technology, developers and users always want something friendly, not entirely new. Currency and the upgrade will be the reserve currency, the development of basic currencies will become online databases, people will not need to carry too much paper money, Bitcoin may be called a currency but it is unfriendly and it is too volatile around the world, the world will not accept reserves it

Bitcoin as a global internet currency.
Or any electronics currency. You could still use it offline.  ;D

Fiat should not be taken away and I doubt it will be.
If you are leaving in condominiums or subdivisions then you might not be seeing it.
Trying living in rural places. Everything is about paper money. They don't even have any electrical device besides lights, radio and others for security.

As a global reserve though. I still doubt that will happen.

It can't happen since Bitcoin still isn't accepted worldwide. Even if the current global reserve currency go down, there's still a lot other currency that can be the next reserve currency like Euro and yuan. Digital currency has a great potential in the future but as a reserve currency, it's possible for a centralized one. There's still a lot of ongoing debate about bitcoin's acceptance so it's still vague

Bitcoin offers innovation on the weakness of fiat currencies, if used as a temporary reserve I will agree because it takes a long process to be able to replace the major currencies.
But if you underestimate bitcoin, I disagree, because what is provided by bitcoin can cover the shortcomings of the FIAT currency which is currently polemic and can be manipulated printed without any definite amount.

seems a lot of posters have not read this post by Jet Cash.
Bitcoin is currently a global currency and is becoming a store of wealth.
While some people claim that banks globally are buying Bitcoin, and
from this year EU banks will be permitted to, it will not be a reserve currency
because of the points quoted above.

https://www.fxstreet.com/cryptocurrencies/news/new-eu-law-states-that-banks-may-hold-and-sell-bitcoin-from-2020-201912030544

Its true that BITCOIN is decentralized,uncontrolled and digital currency. Government official will not allow Bitcoin as reserve till find the way to track the transaction f Bitcoin.Controlling bitcoin will help to generate revenue from Bitcoin transactions to use for further projects t stable the economy.

It seems impossible in near future because till now no one can stop or ban the Bitcoin,Another side if it came as global reserve more investors,corporate sectors,individuals will get benefit from it.

I agree that bitcoin is far too volatile to be a reserve currency now, but I wouldn't be shocked if some countries are stockpiling it as a portion of their reserves. We already know major banks and corporations are mining bitcoin. We are seeing gold (https://globalgoldreset.wordpress.com/) play a greater role in the global financial system, especially with massive purchases from Russia and China.

Perhaps in five to 10 years the sentiment about bitcoin will change as prices stabilize somewhat.

It is already been tracked by. The only thing that the government would like to happen is to controlled the entire crypto market which they hated most cause they can't and definitely not to happen.

Bitcoin is already been used by big companies, not possible that the others will do the same. The only thing that makes them been doubtful about using bitcoin is because of its volatility and funds security.

I am certain that Bitcoin can assist in economic terms global finances. It can be used as a reserve currency to minimize exchange rate dangers for the national fiat money (as a backing like gold), but I also think that it can be used as a parallel currency and become accepted by governments as a legitimate payments method.

This could help any country facing financial disaster (extreme recession, devaluation of the national currency, mass inflation), but also it can be of help to booming economies as well.

Bitcoin can be used as a store of value in order to protect the national currency from massive reduction in value and also it can provide the economy an escape from their crumbling financial system.

Running two currencies in parallel was implemented for a while, in most countries that adopted euro and it is not impossible for Bitcoin to become a parallel method of payments or even the main one.

i don't think like that. the rapid growth of the blockchain led countries to adopt it, and began to build a centralized national currency. but what about bitcoin, is still controversial. I think bitcoin will live with people's adoption, while the country makes its personal currency. so, bitcoin will become a commodity. not as a currency. this is in my opinion in the future.

The idea is great to have a currency that is universally accessible for everyone without any restrictions. The current fiat system has kept almost 2 billion people out of banking system due to different regulations. Bitcoin is the only way to bring all of them into banking system. I don’t think government bodies will ever allow this to happen.

Bitcoin is the perfect financial entity to be used as a global reserve currency but the only problem is that its decentralized nature and the limited amount of it  will prevent majority governments from using it as a global reserve currency.  A lot of countries governments will prefer that they are the ones in charge of control the inflow of the crypto coin in the financial ecosystem. Since Bitcoin is not like that, it might be very difficult for them to consider it as a global reserve currency.

I don't think Bitcoin is fit to be called a currency mate. It's too volatile and did i hear the OP say bitcoin is not volatile? lol, when was the last time you checked Coinmarketcap? i think bitcoin just as gold is suitable as an asset to store value rather than a currency to be used in our daily activities. You can monitor the fluctuations in the price of bitcoin over here (https://coinmarketcap.com)

In my opinion it is impossible for bitcoin as a global reserve currency, because the government will never agree. Because bitcoin cannot
be controlled and its price volatility, for these two reasons makes bitcoin difficult to become a global reserve currency. A country as big
as China only supports blokchain and does not support bitcoin. Therefore in my opinion bitcoin will still be accepted as a digital asset,
by most countries in the world. If cryptocurrency in the future will become a global reserve currency but certainly not bitcoin, but rather
the possibility of cryptocurrency created by each country in the world. Like China which is making cryptocurrency themselves.

We all know that bitcoin is not controlled by any of the government. Meaning, it is impossible for it to become a global reserved currency. They do not trust bitcoin that much because of its complexity unlike having a fiat in their hands. Plus the fact that bitcoins price is volatile and continuously changing day by day.

I’m not sure that Bitcoin can be the world's reserve currency. Primarily because of its volatility. But, in the case when the capitalization of bitcoin will be ten times greater than now, then this scenario is quite possible.

Given this fact, yes, we can really tell and can't figure out for now how the world will make it as a reserve currency, for now, we can just say that it can be one way tool for all the countries which suffering from financial crisis to be one of their option and alternative while they are still recovering the financial crisis in their country.

Bitcoin's intangibility and security can be a stepping stone for a currency that could be used for global reserves, as it ensures that nobody that is unwanted would be able to get a hold of the important funds the reserve contains, but bitcoin itself being used as a global reserve might be too farfetched if we take into consideration the current state of bitcoin, it's volatility could cause problems especially with audit and setting up projects that would need those funds.

This is the fact because there are still countries who hated bitcoin and they dont accept bitcoin as a currency. Does this mean that bitcoin is good to be an asset to us where we store at the safe wallet and waiting to harvest anytime soon as we saw that our profit was there? But to become a global currency? Probably it will take a longer time or probably it will not.

I think as a alternative currency bitcoin will be a great currency and as currently it is already becoming a currency that anyone in the world could use and also we could also make a transaction anywhere all over the world. Surely as alternative or reserve currency online this bitcoin could easily be the best , but still need to implement in the market since it doesn't have a lot of assets.

That's true, I mean it will take some time for bitcoin to be used in all the countries over the world, because as we know that bitcoin's price is so volatile and there's some countries are illegalizing it currently. Bitcoin is usually an amazing crypto currency for investment, but I don't think that it's gonna become a global currency really soon.