Is Bitcoin the best reserve asset?

[shield132]

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.

[shoreno]

Bitcoin can be considered as the best reserve asset but the most dangerous at the same time.

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 .

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

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

[Shasha80]

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.

[charlesmichel1]

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.

[Alucard1]

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".

[Kong Hey Pakboy]

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".

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.

[rodskee]

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.

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.

[goaldigger]

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".

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.

[Sterbens]

Obviously I trust in bitcoin however we cannot minimize the risks we are incurring by holding bitcoin, lets take some of the questions you ask as an example, will bitcoin still exist 100 years in the future? I think the answer to that is yes, but will it retain its value or even increase it after 100 years? This is something I do not know, what if during the next decades a new coin that is many times better than bitcoin appears and that is the coin that gets widely adopted by the world and not bitcoin?

And just as gold can be lost bitcoin can be lost just as easily, there are many horror stories about lost and broken hard drives, people that lost the piece of paper were they wrote their seed words or their paper wallets, all in all bitcoin is a great way to store your money but it is still subject to many of the same issues.

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.

[Dorodha]

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.

[manfredmann]

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.

[Silberman]

Bitcoin is too unstable to be used as reserve asset

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.

[drlukacs]

MicroStrategy, Grayscale, square etc, it was a year when companies chose Bitcoin as their reserve asset, if you missed some of the big news, see Fillippone's thread

Do you think Bitcoin is the best reserve asset we have atm? Much better than Gold and others, and can we continually trust Bitcoins value to keep appreciating with the years.

The article: https://cointelegraph.com/news/bitcoin-is-the-best-treasury-reserve-asset-humanity-s-ever-had (it's much better you read the article first before commenting)

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.

[justdimin]

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

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

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.

[Fortify]

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.

[FlightyPouch]

Reserve assets should be stable one and I will think about fiat currencies. Bitcoin is more like an investment. Although in the case of large companies buying large amounts of Bitcoin as reserve assets, they also say that they will sell them at a good profit. Obviously, it is an investment rather than a reserve of assets.

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.