Gold Is Yesterday, Here Comes Bitcoin As A Reserve Currency

[Hydrogen]

Peter Thiel – PayPal co-founder and billionaire venture capitalist, for a long time now has been a backer of the virtual currency Bitcoin. Thiel did again indicate out the ‘real potential’ of BTC at the Investment Initiative in Riyadh, Saudi Arabia, pointing out that people are truly underestimating it.

Peter Thiel has long been one of the early proponents of Bitcoin. As early as 2013, he stated that Bitcoin has the potential to change the world. As one of the co-founders of PayPal, he recognized the ability of Bitcoin to revolutionize the monetary space. He had long held the view that monetary sovereignty’s time is limited and encrypted money would be the future. Earlier Peter Thiel did comment on how Bitcoin unlike PayPal, was really able to create a currency.

Bitcoin BTC could very well be the virtual gold of our time and replace it as a reserve currency – according to Peter Thiel. Many ‘similarities’ were compared between the two by Thiel like it is mineable and its limited supply.

“It’s like a reserve form of money, it’s like gold and it’s just a store of value. If Bitcoin ends up being the cyber equivalent of gold, it has a great potential left.”

On the other hand, Peter did not really have any enthusiastic feel about the other virtual assets and altcoins which could be discouraging for altcoin followers which have put their hopes for most part of the year on them.

While Peter Thiel is pretty bullish on the potential of Bitcoin, in Riyadh, a certain Saudi prince has a different view. Prince Alwaleed bin Talal, the richest Arab in the world, believes that Bitcoin will implode like Enron. While Bitcoin trading is allowed in Saudi Arabia, the Saudi Arabian Monetary Authority has warned people about the risks of investing in Bitcoin. The Middle East is a region teeming with billionaires and if Peter Thiel has managed to convince a few people to invest their oil-dollars in Bitcoin, the price of Bitcoin could receive a boost.

http://ethereumworldnews.com/gold-yesterday-comes-bitcoin-reserve-currency/

Tired of "is bitcoin is a bubble"?

Now you can enjoy the wonders of "is bitcoin a reserve currency"?  

On a serious note, it is possible bitcoin could eventually become a reserve currency to replace gold. This paradigm could represent the natural evolution of cryptocoins with limited supply if it is established that limited supply and algorithmic based regulation are best methods to promote stability and long term value.

Would be interested to know public opinion on this. Would people feel safer having bitcoin as a reserve currency than they would having fiat like the dollar or euro as reserve?

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[BitcoinRapid]

Well the US has already proved they can have a currency without a gold reserve backing it. So the idea of bitcoin being the backing instead of gold isn't to absurd.

[soham]

Gold has not been used as a reserve currency anymore in majority of the countries. So there is no question of replacing gold by bitcoin as a reserve asset. Also I believe bitcoin is not structurally built for such kind of investments. It is a decentralized currency and the legal status of bitcoin is not yet clear in majority of the countries. Also the use of bitcoin is still questionable. It can be very easily used for money laundering and terrorism funding transactions without any hint. So bitcoin can't become a reserve asset for any of the fiat currencies. Bitcoin is good at its current place and the fluctuating nature of its price made it popular to the young & aggressive mass. Reserve asset is a very serious matter and bitcoin or blockchain is not yet ready for such big responsibility.

[dali_masmoudi]

When we tolk about reserve we talk about a whole budget of a country. Which needs a good management.
But here, we Don't have to forget that Bitcoin stills a virtual currency.
Maybe after being a real one we can dream it to be the reserve instead of money and gold.

[BitcoinRapid]

Gold has not been used as a reserve currency anymore in majority of the countries. So there is no question of replacing gold by bitcoin as a reserve asset. Also I believe bitcoin is not structurally built for such kind of investments. It is a decentralized currency and the legal status of bitcoin is not yet clear in majority of the countries. Also the use of bitcoin is still questionable. It can be very easily used for money laundering and terrorism funding transactions without any hint. So bitcoin can't become a reserve asset for any of the fiat currencies. Bitcoin is good at its current place and the fluctuating nature of its price made it popular to the young & aggressive mass. Reserve asset is a very serious matter and bitcoin or blockchain is not yet ready for such big responsibility.

This is such a good point. It is hard to use a decentralized currency as the backing of a country's currency.

[Hydrogen]

This is such a good point. It is hard to use a decentralized currency as the backing of a country's currency.

The theory behind central banks creating policy guidelines on how nations run their economies is: privately owned banks which are independent of a state promote decentralization in a way which leads to greater economic stability and reduced conflict of interest.

The federal reserve (central bank) of the united states is a privately owned institution rather than a socialist, state run, enterprise.

If decentralization between privately owned central banks and state run governments is a good thing.

It may naturally follow that a more decentralized currency such as bitcoin being utilized as a reserve currency could be superior to a private central bank, as crypto is more decentralized than central banks. Decentralization is a main argument for central banks having as much power and influence as they do. It could mean that decentralized currencies have a historical precedent for performing roles traditionally taken by central banks. This could be evidence for crypto performing well as a reserve currency.

[BartS]

Peter Thiel – PayPal co-founder and billionaire venture capitalist, for a long time now has been a backer of the virtual currency Bitcoin. Thiel did again indicate out the ‘real potential’ of BTC at the Investment Initiative in Riyadh, Saudi Arabia, pointing out that people are truly underestimating it.

Peter Thiel has long been one of the early proponents of Bitcoin. As early as 2013, he stated that Bitcoin has the potential to change the world. As one of the co-founders of PayPal, he recognized the ability of Bitcoin to revolutionize the monetary space. He had long held the view that monetary sovereignty’s time is limited and encrypted money would be the future. Earlier Peter Thiel did comment on how Bitcoin unlike PayPal, was really able to create a currency.

Bitcoin BTC could very well be the virtual gold of our time and replace it as a reserve currency – according to Peter Thiel. Many ‘similarities’ were compared between the two by Thiel like it is mineable and its limited supply.

“It’s like a reserve form of money, it’s like gold and it’s just a store of value. If Bitcoin ends up being the cyber equivalent of gold, it has a great potential left.”

On the other hand, Peter did not really have any enthusiastic feel about the other virtual assets and altcoins which could be discouraging for altcoin followers which have put their hopes for most part of the year on them.

While Peter Thiel is pretty bullish on the potential of Bitcoin, in Riyadh, a certain Saudi prince has a different view. Prince Alwaleed bin Talal, the richest Arab in the world, believes that Bitcoin will implode like Enron. While Bitcoin trading is allowed in Saudi Arabia, the Saudi Arabian Monetary Authority has warned people about the risks of investing in Bitcoin. The Middle East is a region teeming with billionaires and if Peter Thiel has managed to convince a few people to invest their oil-dollars in Bitcoin, the price of Bitcoin could receive a boost.

http://ethereumworldnews.com/gold-yesterday-comes-bitcoin-reserve-currency/

Tired of "is bitcoin is a bubble"?

Now you can enjoy the wonders of "is bitcoin a reserve currency"?  

On a serious note, it is possible bitcoin could eventually become a reserve currency to replace gold. This paradigm could represent the natural evolution of cryptocoins with limited supply if it is established that limited supply and algorithmic based regulation are best methods to promote stability and long term value.

Would be interested to know public opinion on this. Would people feel safer having bitcoin as a reserve currency than they would having fiat like the dollar or euro as reserve?

Bitcoin is way better than fiat so having bitcoin as a reserve currency will be better in my opinion the only issue with it is that countries will never allow that unless they got a complete control of bitcoin so if that scenario came to happen that will mean that bitcoin is already under their control and that is something that I find disgusting.

[Razick]

It should be noted that Bitcoin is not the only potential reserve currency. All cryptocurrency is, especially more anonymous ones like Monero. A lot of people are switching to Monero as I type this, because it is actually 100% anonymous, whereas Bitcoin is only pseudo-anonymous which means if the government wants, they could track you, but with Monero it isn't possible.

[krauzzer02]

Yes that is the fact and a great article to read, it is actually a future gold not physically but the way how we value it and how limited it is. by the time when bitcoin were almost mined by the year 2140 and just circulating to the market it will become scarce and limited due to its limited supply and the increasing demand of the growing population of the bitcoin community it will increase its value from time to time surpassing the value and price of gold.

[noictib]

I agree with OP and I also follow the bitcoin to make life more profitbale with bitcoin only and also I am making successful earnings with the bitcoin and also I know there is no chance to have another cryptocurrency as an bitcoin to be a main thing in this field , but still here it is a bitter truth that gold and fiat like system are part of our life and we can't ignore such things in comparison of bitcoin Because gold and fiat are having much importance in our life like the bitcoin have in our life.
Currently we can say that fiat are uses by us to make the small shops payment ( who don't want to know bitcoin anymore ) second thing gold have values ( regardless of the factor of increase and decrease in the price ) are using by the people to make jewelry.

[BTCevo]

I agree with OP and I also follow the bitcoin to make life more profitbale with bitcoin only and also I am making successful earnings with the bitcoin and also I know there is no chance to have another cryptocurrency as an bitcoin to be a main thing in this field , but still here it is a bitter truth that gold and fiat like system are part of our life and we can't ignore such things in comparison of bitcoin Because gold and fiat are having much importance in our life like the bitcoin have in our life.
Currently we can say that fiat are uses by us to make the small shops payment ( who don't want to know bitcoin anymore ) second thing gold have values ( regardless of the factor of increase and decrease in the price ) are using by the people to make jewelry.

Somehow, we can't seperate fiat to bitcoin since most of us always take some profit into our own currency, I do not think if we can take bitcoin without any value in it. But to compare it with gold, I believe bitcoin have much more better future to get some profit with but in case we have more money we should have some gold too

[markj113]

Why would any country want complete transparency of their finances?

How much gold is in Fort Knox?
When was the last audit?

[pitiflin]

Peter Thiel – PayPal co-founder and billionaire venture capitalist, for a long time now has been a backer of the virtual currency Bitcoin. Thiel did again indicate out the ‘real potential’ of BTC at the Investment Initiative in Riyadh, Saudi Arabia, pointing out that people are truly underestimating it.

Peter Thiel has long been one of the early proponents of Bitcoin. As early as 2013, he stated that Bitcoin has the potential to change the world. As one of the co-founders of PayPal, he recognized the ability of Bitcoin to revolutionize the monetary space. He had long held the view that monetary sovereignty’s time is limited and encrypted money would be the future. Earlier Peter Thiel did comment on how Bitcoin unlike PayPal, was really able to create a currency.

Bitcoin BTC could very well be the virtual gold of our time and replace it as a reserve currency – according to Peter Thiel. Many ‘similarities’ were compared between the two by Thiel like it is mineable and its limited supply.

“It’s like a reserve form of money, it’s like gold and it’s just a store of value. If Bitcoin ends up being the cyber equivalent of gold, it has a great potential left.”

On the other hand, Peter did not really have any enthusiastic feel about the other virtual assets and altcoins which could be discouraging for altcoin followers which have put their hopes for most part of the year on them.

While Peter Thiel is pretty bullish on the potential of Bitcoin, in Riyadh, a certain Saudi prince has a different view. Prince Alwaleed bin Talal, the richest Arab in the world, believes that Bitcoin will implode like Enron. While Bitcoin trading is allowed in Saudi Arabia, the Saudi Arabian Monetary Authority has warned people about the risks of investing in Bitcoin. The Middle East is a region teeming with billionaires and if Peter Thiel has managed to convince a few people to invest their oil-dollars in Bitcoin, the price of Bitcoin could receive a boost.

http://ethereumworldnews.com/gold-yesterday-comes-bitcoin-reserve-currency/

Tired of "is bitcoin is a bubble"?

Now you can enjoy the wonders of "is bitcoin a reserve currency"?  

On a serious note, it is possible bitcoin could eventually become a reserve currency to replace gold. This paradigm could represent the natural evolution of cryptocoins with limited supply if it is established that limited supply and algorithmic based regulation are best methods to promote stability and long term value.

Would be interested to know public opinion on this. Would people feel safer having bitcoin as a reserve currency than they would having fiat like the dollar or euro as reserve?

Reserve currency,sounds fancy. That could be possible surely. Few years ago a lot of people ignored bitcoin and thought it was a ponzi scheme and stuff,well if they had done their own research properly and not just assumed and judged it by now they could have been a millionaire by now. Reserve currency would be possible if there is mass adoption,probably bitcoin will be one probably not. Gold is still way beyond domination and its extinction is going to take quite some time.

[lordquanta]

Peter Thiel – PayPal co-founder and billionaire venture capitalist, for a long time now has been a backer of the virtual currency Bitcoin. Thiel did again indicate out the ‘real potential’ of BTC at the Investment Initiative in Riyadh, Saudi Arabia, pointing out that people are truly underestimating it.

Peter Thiel has long been one of the early proponents of Bitcoin. As early as 2013, he stated that Bitcoin has the potential to change the world. As one of the co-founders of PayPal, he recognized the ability of Bitcoin to revolutionize the monetary space. He had long held the view that monetary sovereignty’s time is limited and encrypted money would be the future. Earlier Peter Thiel did comment on how Bitcoin unlike PayPal, was really able to create a currency.

Bitcoin BTC could very well be the virtual gold of our time and replace it as a reserve currency – according to Peter Thiel. Many ‘similarities’ were compared between the two by Thiel like it is mineable and its limited supply.

“It’s like a reserve form of money, it’s like gold and it’s just a store of value. If Bitcoin ends up being the cyber equivalent of gold, it has a great potential left.”

On the other hand, Peter did not really have any enthusiastic feel about the other virtual assets and altcoins which could be discouraging for altcoin followers which have put their hopes for most part of the year on them.

While Peter Thiel is pretty bullish on the potential of Bitcoin, in Riyadh, a certain Saudi prince has a different view. Prince Alwaleed bin Talal, the richest Arab in the world, believes that Bitcoin will implode like Enron. While Bitcoin trading is allowed in Saudi Arabia, the Saudi Arabian Monetary Authority has warned people about the risks of investing in Bitcoin. The Middle East is a region teeming with billionaires and if Peter Thiel has managed to convince a few people to invest their oil-dollars in Bitcoin, the price of Bitcoin could receive a boost.

http://ethereumworldnews.com/gold-yesterday-comes-bitcoin-reserve-currency/

Tired of "is bitcoin is a bubble"?

Now you can enjoy the wonders of "is bitcoin a reserve currency"?  

On a serious note, it is possible bitcoin could eventually become a reserve currency to replace gold. This paradigm could represent the natural evolution of cryptocoins with limited supply if it is established that limited supply and algorithmic based regulation are best methods to promote stability and long term value.

Would be interested to know public opinion on this. Would people feel safer having bitcoin as a reserve currency than they would having fiat like the dollar or euro as reserve?

Reserve currency or not that is long gone. Because many countries dont have gold backed currency. However the gold is known for its stable price history. Thus many investors find it useful when bears enter in the market. That is put money in something pumping up and when dump moment is about to start or just started move the value to the gold. Why because gold keeps price almost steady. If we look at bitcoin from that point of view then anyone can notice that person is trying to use petroleum or hydrogen gas to control the fire. Bitcoin is that pumping entity where  people investing heavily. When prices starts to crumble people cash out from the bitcoin.
However this status of stable currency is enjoyed by bitcoin in alt-currency world. Because same people invest in altcoins and when specific profit is earned it is converted in to the bitcoin.

[Beerwizzard]

On a serious note, it is possible bitcoin could eventually become a reserve currency to replace gold. This paradigm could represent the natural evolution of cryptocoins with limited supply if it is established that limited supply and algorithmic based regulation are best methods to promote stability and long term value.

First of all gold is not a currency (at least after the gold standart was cancelled) but it is a "safe heaven" for investments where your investments will be safer than in all other currencies / assets. Because of volatility and many other things BTC still can't be called safe comparing it with gold that already have long and proven history behind it. Not everyone will take such risks right now but it seems to be a smart move later. Or maybe  some small country will guarantee its currency in BTC by having the necessary amount of btc in reserve.

[The Sceptical Chymist]

Gold isn't a reserve currency, it's a store of value and a hedge against inflation.   It's also an investment asset.

Bitcoin is a speculative asset, and it sucks as a currency because of the fees and confirmation times.  I don't get all these threads that compare bitcoin to gold--they're two completely different things that happen to share some of the same attributes.  And there really aren't many. 

Unless bitcoin's volatility goes down significantly, it'll never be a reserve currency, because it's not safe to keep any money in bitcoin, as opposed to something like the USD.  That's a good reserve currency because it's stable.  Bitcoin is anything but stable.

[Skyborn]

Gold isn't a reserve currency, it's a store of value and a hedge against inflation.   It's also an investment asset.

Bitcoin is a speculative asset, and it sucks as a currency because of the fees and confirmation times.  I don't get all these threads that compare bitcoin to gold--they're two completely different things that happen to share some of the same attributes.  And there really aren't many.  

Unless bitcoin's volatility goes down significantly, it'll never be a reserve currency, because it's not safe to keep any money in bitcoin, as opposed to something like the USD.  That's a good reserve currency because it's stable.  Bitcoin is anything but stable.

Bitcoin isn't solely a speculative asset. People speculate but that is beyond bitcoin's technology and only a fraction of the value it stores. Bitcoin is a mathematically proven store of value, the only reason it's so volatile right now is because the market is still tiny compared to the market cap of, let's say, the US dollar. But that doesn't make it a legitimate. If bitcoin reaches a trillion dollar market it will be less volatile than it is today.

[realr0ach]

Garbage article.  Bitcoin has a reverse Schelling point due to being designed to function only as a settlement network with high fees and low scalability, not to mention ease of cornering the entire market since most of the whole thing is mined on all these coins in a couple years.  You are incentivized to create "altcoins" in other words rather than the entire world trying to fit on a single chain and be extorted with low scaling usury fees and already cornered markets.  

Since bitcoin can only function as a settlement network, it's only real function is doing something like replacing SWIFT, but  proof of work/stake, proof of anything are all designed to centralize, meaning there's no real difference in a centralized bitcoin and a centralized SWIFT network rendering the entire exercise pointless and a giant scam once it reaches endgame.  Bitcoin also has built-in rent seeking middlemen (transaction validators) and doesn't remove counter party risk, making it inferior to metals regardless of these other problems.

Once you extrapolate everything to the endgame, bitcoin doesn't actually have a single fundamental going for it whatsoever, which is why morons claiming it's better than metals are just scammers.

[Koadharber]

Gold isn't a reserve currency, it's a store of value and a hedge against inflation.   It's also an investment asset.

Bitcoin is a speculative asset, and it sucks as a currency because of the fees and confirmation times.  I don't get all these threads that compare bitcoin to gold--they're two completely different things that happen to share some of the same attributes.  And there really aren't many.  

Unless bitcoin's volatility goes down significantly, it'll never be a reserve currency, because it's not safe to keep any money in bitcoin, as opposed to something like the USD.  That's a good reserve currency because it's stable.  Bitcoin is anything but stable.

Bitcoin isn't solely a speculative asset. People speculate but that is beyond bitcoin's technology and only a fraction of the value it stores. Bitcoin is a mathematically proven store of value, the only reason it's so volatile right now is because the market is still tiny compared to the market cap of, let's say, the US dollar. But that doesn't make it a legitimate. If bitcoin reaches a trillion dollar market it will be less volatile than it is today.

Bitcoin is a mathematically proven store of value? No its not. Even though it would reach trillion dollar market it doesnt mean it will still able to patch up anything. Gold will still remain no matter what and i dont see that bitcoin as a reserve currency.Assurance isnt their because price is too volatile and does depend on adoption or investor to bitcoin but yet it is somehow good for investment purposes and its benefits on new way payment system.

[Don Pedro Dinero]

Gold has not been used as a reserve currency anymore in majority of the countries. So there is no question of replacing gold by bitcoin as a reserve asset. Also I believe bitcoin is not structurally built for such kind of investments. It is a decentralized currency and the legal status of bitcoin is not yet clear in majority of the countries. Also the use of bitcoin is still questionable. It can be very easily used for money laundering and terrorism funding transactions without any hint. So bitcoin can't become a reserve asset for any of the fiat currencies. Bitcoin is good at its current place and the fluctuating nature of its price made it popular to the young & aggressive mass. Reserve asset is a very serious matter and bitcoin or blockchain is not yet ready for such big responsibility.

This is such a good point. It is hard to use a decentralized currency as the backing of a country's currency.

He is not talking about gold being a reserve currency for any certain country, he is talking about a reserve currency in general, and he doesn’t talk about fiat currencies being backed by bitcoin either.

He is saying bitcoin is used as a reserve currency now and it has the potential to be even more used as a reserve currency in the future, which I think is correct unless fees for low payments drop drastically and confirmation times speed up.