Gold Is Yesterday, Here Comes Bitcoin As A Reserve Currency

[Zackgeno96]

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.

Agreed with you, bitcoins could be considered as pseudo-anonymous but it will be really difficult for the government authorities to trace the origin of the bitcoins transactions, though it is a peer to peer network. Yes, there are many other cryptocurrencies, but only bitcoins has the potential to became a reserve currency.

[1714879638]

1714879638

[yoseph]

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.

Not all countries currencies are backed by their gold reserves, if that was indeed the case, then countries with the most gold will be the richest in the world but that is not really the case in this scenario at all. But i don;t think bitcoin can be a used a reserve currency especially since it 's not tangible.

[btcbrother]

Gold is yesterday, today and tomorrow. It will always be a reserve currency, and so will cryptocurrencies like Bitcoin.

[_Dawid_]

I don't agree with your point of view.
In spite of fact that gold is (currently) much more known and appreciate than bitcoin it is a thing which is substiantial, what is more can be used in many different ways from decoration to usable stuff. Bitcoin has a value right now but it seems to be a little imagined for common people.
Majority thinks that bitcoin is a bubble mainly because you can go with gold to an shop and buy sth, with bitcoin not really. May it will change soon, then it won't be a bubble but accurate prediction.

[TTITA]

In fact, the movement of profits from gold investment is very slow.
The bitcoin set is moving fast in the up / down condition.
It is not wrong if we think bitcoin is the present with all its advantages to invest.

[trecore4]

I don’t understand  why is limited supply a stability for long terms? I mean that could actually collapse the economy of bitcoin due to the fact that in the the near future supply and demand will be needed on enormous amounts. What would the reserves will do in such cases? How they will contribute to the national needs.


Like in the real world currency or fiat in short, reserve banks of nation will produce more money for the sake of fulfilling the national emergency needs and normal trades too.

[Yuhee]

I don’t understand  why is limited supply a stability for long terms? I mean that could actually collapse the economy of bitcoin due to the fact that in the the near future supply and demand will be needed on enormous amounts. What would the reserves will do in such cases? How they will contribute to the national needs.


Like in the real world currency or fiat in short, reserve banks of nation will produce more money for the sake of fulfilling the national emergency needs and normal trades too.

It maybe limited as it seems to be stated, it could actually take more than out generation for all the bitcoin to be mined, even though in the near future more btc will be needed, the same time currencies and prices will also go up, so 1 bitcoin maybe go at 10k$. That could mean you will just need small portion of bitcoin to at least buy many decent things. The higher the price lesser btc would be actually needed.

[Jeger]

Strangely I do think that Bitcoin is really the future medium where we will store our asset, more like the digital gold of the world. Because Bitcoin is not a physical asset which means Bitcoin is physically impossible to destroy, or to be stolen. The practicality also comes in mind.

[hase0278]

Strangely I do think that Bitcoin is really the future medium where we will store our asset, more like the digital gold of the world. Because Bitcoin is not a physical asset which means Bitcoin is physically impossible to destroy, or to be stolen. The practicality also comes in mind.

I agree with you that bitcoin is the future medium where we will store our assets, but always remember than bitcoin, albeit physically impossible to be destroyed, can be stolen using some means. All system have their flaws, including bitcoin therefor,e there will always be a loophole that will let one steal bitcoin even if it is hard to do. Still, I believe that gold will also continue to be a reserve currency even if bitcoin becomes one.

[eekkaa]

this could happen if this is great for future developments then bitcoin will become the major international currency

[ynatopak14]

definitely ! bitcoin is the life and investment for today as gold will remain in the past !!
investing in gold is like having an alternative fiat that will not increase the price that volatile thought bitcoin is and will rise above !

[buwaytress]

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?

Never been tired of that talk, my friend. I think it's good to have that talk come up every now and then as a constant reminder never to risk all.

Bitcoin may very well be a reserve currency, one day. But that day is far into a future impossible to predict right now. It's taken gold a long time to achieve its current status, and Bitcoin is but an infant technology. Sure, many like myself are holding, shoring up reserves, and hoarding as much as we can - but these are all banking on Bitcoin. It needs global recognition as a reserve. That's many decades from now.

Even the US dollar is a better store of reserve now, and will be for at least a decade, I think. Of course, I will be too happy to be proven wrong!

[bitjoin]

In fact, the movement of profits from gold investment is very slow.
The bitcoin set is moving fast in the up / down condition.
It is not wrong if we think bitcoin is the present with all its advantages to invest.

Gold is not going to move up very quick at any point like bitcoin because its been around for like 10,000 years as money. Its a very good stable store of value and time tested which is something bitcoin cant say.  But yeah bitcoin is much better for the next 10-20 years for sure.

[Hydrogen]

I don’t understand  why is limited supply a stability for long terms? I mean that could actually collapse the economy of bitcoin due to the fact that in the the near future supply and demand will be needed on enormous amounts. What would the reserves will do in such cases? How they will contribute to the national needs.

Limited supply greatly reduces prospects of hyperinflation/devaluation and also poor money management. For real world application the bolivar in venezuela hyperinflating, as it prints increasingly higher volumes of paper currency, might serve as an example.

Venezuela's currency now worth so little shopkeepers weigh vast piles of notes instead of counting them

Inflation in Venezuela is expected to reach 720 per cent this year, with the largest bolívar bill now worth just five US cents on the black market.

Some shopkeepers have reportedly taken to weighing rather than counting the wads of cash customers hand them, and standard-size wallets have become all but useless in the socialist South American state. Instead, many people stuff huge volumes of cash into handbags, money belts, or backpacks, in scenes analysts have said are suggestive of "runaway" inflation.

In 2014, plummeting global oil prices decimated Venezuela's economy. President Nicolás Maduro responded by fixing the official exchange rate and ordering banks to print more cash, which ultimately devalued the currency further, while goods prices soared.

“When they start weighing cash, it’s a sign of runaway inflation,” he said. “But Venezuelans don’t know just how bad it is because the government refuses to publish figures.”

Oil makes up a staggering 95 per cent of Venezuela's exports, and accounts for a quarter of the country's economy, with oil-related revenues having historically supplied roughly half the government budget. This kind of over-reliance on a single export notoriously depresses all other industries in a country, in a phenomenon known by economists as "Dutch Disease".

http://www.independent.co.uk/news/world/americas/venezuelas-currency-hyper-inflation-oil-crisis-devalued-shop-keepers-weigh-notes-a7443596.html

Crypto currencies which have no limit on supply could choose to raise their cap by 5 million tomorrow, then reduce it by 10 million the next day.  They could choose to adopt policies which increase the value of a currency, or do the opposite and adopt policies which devalue it. The reasons and motivations for changing the cap can be political or agenda based, or there could be no reason at all. Having a variable supply opens the door to all forms of manipulation and scams. This is why crypto coins which have limited supply are generally viewed as being more reliable and less prone to negative circumstances than coins which have no predetermined plan for handling supply.

Currencies with variable supply operate heavily on trust. Currencies with limited supply greatly eliminate the trust factor from the equation. You know what you're getting which makes it easier to calculate how much something is worth and what the expected print rates will be.

[Smarty14392]

In fact, the movement of profits from gold investment is very slow.
The bitcoin set is moving fast in the up / down condition.
It is not wrong if we think bitcoin is the present with all its advantages to invest.

Gold is not going to move up very quick at any point like bitcoin because its been around for like 10,000 years as money. Its a very good stable store of value and time tested which is something bitcoin cant say.  But yeah bitcoin is much better for the next 10-20 years for sure.

Yes gold is a investment of people from many years and bitcoin has reached this heights in very less time span like few years. gold invest will not lead a person to a instant profit but bitcoin investment can do this just in some days as bitcoins price is not so stable and people can hold bitcoins as a investments and use the later when prices are high.

Bitcoin has high profit to investment ratio than gold as gold price increases very slowly and bitcoin has already proved its speed of increase in value.

[bummm]

Yes, recently the group of enthusiasts made an experiment.

There were several people trying to pay for goods and services. One of these guys had to pay only with gold and failed. The other one used only cash and his cash was stolen. The winner — the woman who paid for everything with BTC — said everyone was happy to get Bitcoin for their services and products. Gold is in past - haha

[MakeMoneyBtc]

I dont think bitcoin can be compared with gold as a currency cause bitcoin price can easily decrease ina couple of second while gold price is very hard to decrease in a short time. Gold exists on the world since the planet was created and it is known by every single person. There is a limited resource of gold so the price is getting higher so as with bitcoin. The difference is that bitcoin is not a tangible thing and the price can be easily controlled while with gold is a lot harder

[jimn]

Both Gold and Bitcoin are the best as a reserve currencies. Bitcoin nowadays have a high price and a very promising future, and its growing up daily almost. But gold is also really valuable and trusted by everyone around the world. So saving both is the best choice.

[TheAndy500]

This moment is what was announced a few years ago, that bitcoin becomes a better currency and coverage than other things and means, thanks to its development.

[mrcash02]

I think people still feel more safety with Dollars or Euros. It could be very easy to sabotage a nation with reserve currency in BTCs. A rival country could invest hard on Bitcoins, then provoking a dump right after what would impact the country holding BTCs as reserve currency. For now Bitcoin is just a speculative currency and it will only change when it becomes more stable.