Bitcoin Won’t Be a Global Reserve Currency. But It’s Opening the Box

[djcaoile1205]

Celebrating the 75th anniversary of the Bretton Woods conference is probably not high on the list of priorities for cryptocurrency enthusiasts this month. This is an understandable oversight – the price swings, confusing product launches and whereabouts of Justin Sun are perhaps more compelling.

But the birth of international economic cooperation and interoperability should be recognized as the beginning of a process of economic reconstruction that has contributed to the global imbalances worrying the markets today. It could also have set the scene for the solution.
https://www.coindesk.com/bitcoin-wont-be-a-global-reserve-currency-but-its-opening-the-box

[1715196096]

1715196096

[rdluffy]

I was thinking about this  a few days ago, if BTC will continue for years or if it's just the pioneer to open the door for another cryptocurrency
If I have to bet, I would stick to BTC's side, it have an entire enviroment and it's become more solid everyday, but the future always comes and new technologies are invented in a huge speed

[Carreuh]

Bitcoin will remain itself, it will remain a place of investment and trade will not become a global currency because bitcoin is a currency that has no form at all so it cannot be used as a currency to become a medium of exchange but most of them have opened the door to  the existence of bitcoin as a place of investment

[timerland]

This is an interesting read. I'll quote what is probably the most important part of the piece

A new reserve currency?
Given the growing doubts over the need for and advisability of a fiat-based, single-issuer global reserve currency, you can see why the bitcoin narrative would pop up. Surely a sovereign-free, algorithm-based alternative would be more stable and trustworthy?

Perhaps, but it won’t be bitcoin*.

First, a global currency needs to have a flexible supply. The limits on the amount of gold banks could hold was one of the main reasons the gold standard didn’t work – economic growth outstripped the supply of gold-backed money, and the inevitable scramble to overcome this limitation led to destabilization.

Second, bitcoin will not become a universal settlement token for trading contracts. It’s too volatile. While this should soften in line with greater liquidity, it’s unlikely that businesses and sovereign powers will give up their preference for fiat, which they have some control over.

So, if not bitcoin, then what? What could an international trading currency that embodies both trustworthiness and flexibility look like?

The biggest question of the article - will BTC be enough to be a reserve currency? Flexible supply, BTC has one! Problem is, once again it's instability of price. It's very hard for governments to control the prices of BTC or other decentralized cryptos, whilst other fiat currencies are easy to control for the government. Still wondering if it'll be possible for a centralized crypto-currencies to make it as a reserve currency. We'd see a lot of real movement in blockchain technology, even if it isn't decentralized.

I was thinking about this  a few days ago, if BTC will continue for years or if it's just the pioneer to open the door for another cryptocurrency

There's probably no way BTC would lose dominance. It's the biggest and most adopted cryptocurrency and won't lose a lot of supporters in coming years, and therefore won't really be able to lose dominance in the market.

[dimastegar]

There will be a time until everyone considers Bitcoin as a legal payment solution. At least little by little, Bitcoin has begun to be looked at by many people. It depends on whether they want to accept it or not.

[Carlton Banks]

First, a global currency needs to have a flexible supply.

bollocks

The limits on the amount of gold banks could hold was one of the main reasons the gold standard didn’t work – economic growth outstripped the supply of gold-backed money, and the inevitable scramble to overcome this limitation led to destabilization.

can coindesk.com explain why banks are now buying more gold than ever? their experiment in undisciplined money is coming to an end, and gold buying is a direct consequence

Second, bitcoin will not become a universal settlement token for trading contracts. It’s too volatile. While this should soften in line with greater liquidity, it’s unlikely that businesses and sovereign powers will give up their preference for fiat, which they have some control over.

well, maybe normal people should be the traders who figure out what the price of goods should be, how about that coindesk.com? Let's call it, I dunno, capitalism?



coindesk.com shilling hard for the dying financial industry parasites. for shame, what scumbags

[zavalaidanga]

No, bitcoin it is going to be as gold it is today, just keep it calm and wait for it.

It's old technology already so other new coins will take its place, but bitcoin will be as gold

[Carlton Banks]

Coindesk is just a crummy blog at this point with no checks on what their writers put out, but I guess the same can be said for mainstream news agencies currently as well.

all the Bitcoin/crypto news sites are terrible, a veritable toilet full of turds. the best you can say is that coindesk is the shiniest turd

[dothebeats]

Some countries are already considering bitcoin to be a mix of a hybrid reserve currency: one part gold/USD and one part bitcoin. It isn't a terrible idea in itself although it would certainly take years upon years of studying whether this will be a sensible way to keep the countries reserves. Volatility, as always, has been the most common concern of people, and it wouldn't paint a pretty picture if a nation's reserves decline horrendously due to a massive crash in bitcoin. Anyway, bitcoin has its merits, and perhaps nations can learn a thing or few from the said crypto before trying to use any crypto as a reserve currency, for that matter.

[pjcaruci]

The integration of bitcoin into the economic processes in the country is inevitable, the sooner it is understood, the less problems there will be

[jostorres]

If bitcoin cannot be a global currency, then I don’t see it opening any box for any other currency to become global currency, one of the reason why it will be absolutely impossible to have any other currency is because bitcoin is a decentralized coin and owned by no one, we only know of its investor, but not attributed to any owner or any country.

If there is going to be another currency, then it must be attributed to a particular country, do you think US will suggest a coin and China will sign to adopt it? No, it is either they create their own coin which some of them are proposing now, to be used within their country, or just accept bitcoin that is fully independent on anyone. I understand the size talked about and probably because of its scalability, but it is still enough to kick starting it first.

[Kakmakr]

Remember the Bretton Woods agreement was signed on the concept that the U.S. dollar as the world’s reserve currency, would be pegged to gold. <That gave it stability and value and it was backed by some rare and scarce mineral.>   

As the author stated, "global currency needs to have a flexible supply" ....and we know this is not the case with Bitcoin and it's fixed supply. So in essence, global currencies must have a fixed supply, for them to manipulate it's value. 

Asset backed Crypto currencies are just a digitized version of the US Dollar back then and we know that did not work, so what is next? I can give you a hint... "Blockchain based, "private" and centralized controlled, government coins. <GovCoins>   <--- Not asset backed.   

[7788bitcoin]

I was thinking about this  a few days ago, if BTC will continue for years or if it's just the pioneer to open the door for another cryptocurrency
If I have to bet, I would stick to BTC's side, it have an entire enviroment and it's become more solid everyday, but the future always comes and new technologies are invented in a huge speed

It is not about bitcoin continuing for years, no one is stopping bitcoin and it being the pioneer in decentralized currency no one could over take that mantle even if other technologies evolve that could give bitcoin a better scaling solution the core team will implement those solution to the bitcoin core, we are also evolving as a community and developers are working hard to make it a better solution.

@OP Bitcoin might not be a global reserve currency but we can proudly call it the currency for the internet.

[Carlton Banks]

If bitcoin cannot be a global currency

it is already

• there is a world
• that world is a globe
• Bitcoin is a currency
• Bitcoin is used throughout aforementioned globe

ergo, Bitcoin is a global currency


furthermore, Bitcoin is a reserve currency. people hold it long term, in reserve. central banks and government treasuries do not hold Bitcoin reserves. but why would we care about that

[serjent05]

I was thinking about this  a few days ago, if BTC will continue for years or if it's just the pioneer to open the door for another cryptocurrency
If I have to bet, I would stick to BTC's side, it have an entire enviroment and it's become more solid everyday, but the future always comes and new technologies are invented in a huge speed

It would be great if it is BTC would be the global reserve currency but we all know that government won't accept something that they do not have full control.  Aside from that it is economically unhealthy because of the distribution of BTC is uneven and only a handful of people have lots of it. 

If bitcoin cannot be a global currency, then I don’t see it opening any box for any other currency to become global currency, one of the reason why it will be absolutely impossible to have any other currency is because bitcoin is a decentralized coin and owned by no one, we only know of its investor, but not attributed to any owner or any country.

First, Bitcoin is already a global currency, and with the concensus of different country, a new cryptocurrency can be a global reserved currency.  It is possible we just need to wait for it to happen.

[LMBDA]

We've got more years to come and im sure they would be enough to bridge them.

[Mandoy]

At this point of time it is still impossible for bitcoin to be a global reserve currency. One of the reason is that it is very volatile and this is very dangerous for a global reserve currency since it could cause an economic breakdown. Bitcoin is very young at this point of time and it is not yet ready to be used in that way. I agree that the path for bitcoin is being slowly carved in society but it is still too early. It is possible to be a global reserve currency when its value could hit its max value and will have a stable value.

[TimeBits]

"Bitcoin Won’t Be a Global Reserve Currency. But It’s Opening the Box"

It will, trust me, I know how to make it happen. It will happen, It is going to be nice, we will not be slaves anymore, our kids and friends will be damn proud of us in the future, all of us!, we left them a world or world`s where they will not need to fear death every second, feel the pressure of grinding away working so much. They will laugh at our silly old ways. Think we were really dumb from 1971-2020, but we will also laugh at the past. Nothing but some rainy days no one will really remember in the far future, But the bitcoin blockchain will far surpass anyone reading this, mark my words. They will know what we created, just not how we actually lived, kind of like how we feel about mid-evil times you know what I mean.

[kryptqnick]

I agree that Bitcoin is not likely to become a Global Reserve Currency, since there soon might simply not be enough BTC and scalability is an extremely big challenge here. As for flexible supply that the article states - I don't think it's necessary, and volatility might slowly become less of a problem as more and more people play a part in the price formation. However, I believe that Bitcoin can become sort of an unofficial standard to which people measure up other currencies if Bitcoin becomes stable with time (this matter is debatable, but if you look at how volatile Bitcoin used to be early on, you can see something that gives hope).