Bitcoin as a global reserve currency?

[LeGaulois]

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?



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



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)?

[bittraffic]

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?



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



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.

 

[Amel]

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.

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?

[kryptqnick]

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.

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.

[hatshepsut93]

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.

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.

[Murat]

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.

[piebeyb]

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

[Swordsoffreedom]

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.

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.

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.

[bobitza]

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.

[deadthings]

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.

[Wysi]

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.

[Aikidoka]

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.

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.

[TEX-LXRY]

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

[btccashacc]

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.

[blckhawk]

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.

[Ozero]

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.

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.

[DreamStage]

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.

[Polar91]

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.

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.

[Fundamentals Of]

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.

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 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 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.

[Asmonist]

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.