Bitcoin could win the currency war

[paxmao]

During world war I and II, the European nations ended up in debt and lost their preeminent colonial power both in terms of economy an military power.

On the other side of the world, the U.S. now challenged a declining and divided Europe for leadership of the world. In the course of the war, financial dominance had moved across the Atlantic from London to New York, as the U.S. became the world's largest creditor. It was also much more powerful in other ways. The war had boosted American industry and speeded up the conversion of U.S. economic strength into diplomatic and military power. By the end of the war, the U.S. was the world's largest manufacturer and had the largest stock of gold to back its dollar. Its navy rivalled the British, up until then the world's biggest.

source

In our times we are now seeing China and the USA competing for the world economic dominance. USA seems to be the incumbent while China is showing growths averaging 6% a year and its GDP seems to be nearing that of the USA. While possibly not as strong in military terms, the nuclear deterrent guarantees that a return to a "shameful century" won't be back anytime soon.

Just have a look at the economic side of the argument:



While there is not an open war, there is a fight for dominance that is being fought with trade agreements, currency devaluations, sanctions and diplomacy (soft and hard). COVID has been a useful tool for all governments to print money at will, with the backing of the economic elites that own real stocks in much larger proportion than cash.

I see that bitcoin will benefit immediately (already doing so) from a tailwind of irresponsible money printing, but more than that, I see it benefiting from the silent economic wars in which even the theoretical winners may end in a sea of debt that, once again, will be paid printing monopoly money.

Ray Dalio phrases the opportunity: “And you have a situation when there is a rising power challenging an existing power, there is competition, and there is a risk of war. And so how they deal with each other, whether there is a greater good or whether they are fighting with each other, is the defining moment.”

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[avikz]

We are hearing such arguments from quite some time now where people are speculating whether bitcoin can become the preferred currency system for the world or not! But currency circulation is a sovereign function and it would remain that way only unless the world sees a nuke war.

Bitcoin can very well become a great investment asset for the governments the way they invest in gold today. We have already seen corporates jumping into this crypto bandwagon. But if you are talking about replacing the current financial system, that's not gonna happen!

So I see your argument as a speculation. You can also consider my argument as a speculation. But I don't really see bitcoin becoming a mainstream currency system!

[Fatunad]

It was a old discussed topic.Actually bitcoin had won the war.Nearly 50 percentage of people know additional about bitcoin for now.It's only occurred with the price pump of 50k$.It was a smashing rise in the price of bitcoin.Eventhough their is mighty conclusion of price of bitcoin will reach 100k$ this year. My personal opinion is, the price of bitcoin will cross the value of 70-80k$ only.

When it comes to price speculation then it would be a limitless talks because we know into its true potential when it comes to those new ath's that we can possibly seen.
When it comes to war thing then i dont recognized in between fiat currencies even though crypto did really get some recognition but doesnt mean that it did win completely.
It would just remain as an alternative and wouldnt really become the mainstream ones this is why i dont see the point on why they do always clash out these things.
Fiat cant be replaced and crypto would be always a second option.Period.

[goaldigger]

There’s a strong debate with this topic and since the USD value has been decreasing over the past months, many believes that Bitcoin will take over and take its place. Fiat money has an unlimited supply that it makes more weak compare to Bitcoin with limited supply.

Even if we believe on this things, I don’t think government will stop printing fiat money because that is already part of our culture and the government knows its importance and of course, they can’t get money through cryptocurrency so they have no choice but to remain on the old system of fiat money.

[Flowzer]

Isnt the value of Bitcoin already surpassed all the currency in the world?
The only thing to make it become true is to use Bitcoin as a really currency, as a payment processor in the world.
The adoption is on progress and i believe the time will come soon.

[zanezane]

There’s a strong debate with this topic and since the USD value has been decreasing over the past months, many believes that Bitcoin will take over and take its place. Fiat money has an unlimited supply that it makes more weak compare to Bitcoin with limited supply.

Even if we believe on this things, I don’t think government will stop printing fiat money because that is already part of our culture and the government knows its importance and of course, they can’t get money through cryptocurrency so they have no choice but to remain on the old system of fiat money.

How will bitcoin take the US economy? Bitcoin isn't exclusive to US so they won't be getting a lot of bitcoin in circulation. What is more believable is that the US is going to use bitcoin as a reserve asset as opposed to switching the currency that they are using, and switching is going to be expensive and if they are going to do it in a crash then they are just digging the grave even deeper. They won't stop printing fiat because they know that bankers are going to save the economy like how they do back in the day.

[Taskford]

There’s a strong debate with this topic and since the USD value has been decreasing over the past months, many believes that Bitcoin will take over and take its place. Fiat money has an unlimited supply that it makes more weak compare to Bitcoin with limited supply.

Even if we believe on this things, I don’t think government will stop printing fiat money because that is already part of our culture and the government knows its importance and of course, they can’t get money through cryptocurrency so they have no choice but to remain on the old system of fiat money.

How will bitcoin take the US economy? Bitcoin isn't exclusive to US so they won't be getting a lot of bitcoin in circulation. What is more believable is that the US is going to use bitcoin as a reserve asset as opposed to switching the currency that they are using, and switching is going to be expensive and if they are going to do it in a crash then they are just digging the grave even deeper. They won't stop printing fiat because they know that bankers are going to save the economy like how they do back in the day.

I don't know why people think about this way while in reality bitcoins cannot overcome any fiat currencies around the world since first bitcoin has no legal laws that allows it to use on government financial system as well bitcoin still questionable due to some shady activity in relation on how this one used. And even if we go digital most provably each country will create their legal digital currency and bitcoin will just an option.

I'm not thinking negative about this possibilities but in reality this currency winning war is almost impossible to win by bitcoin without law supporting it.

[Gozie51]

It was a old discussed topic.Actually bitcoin had won the war.Nearly 50 percentage of people know additional about bitcoin for now.It's only occurred with the price pump of 50k$.It was a smashing rise in the price of bitcoin.Eventhough their is mighty conclusion of price of bitcoin will reach 100k$ this year. My personal opinion is, the price of bitcoin will cross the value of 70-80k$ only.

Your statistics here could be wrong about the percentage of people knowing about bitcoin, you never gave any source. In my opinion, bitcoin has not won any war not until a real war combat like the third world war if bitcoin was used as an escaping route for payment of war artilleries, arsenals and other war facilitators above fiat , then we can discuss bitcoin winning the war but at this time bitcoin is far from that. The percentage quoter knowing about bitcoin could still be very minimal, traditional system is still not displaced.

[semobo]

Literally when fiat stated to fall the price of Bitcoin will increase in terms of fiat value and also most the fiat started to fall due to the economic crash that is why they even wanted to make their own tokens before people moving towards decentralization.

[slapper]

Bitcoin is no doubt one of the best assets to invest but it does not show any sign to become the next main currency. No government will let such a phenomenon take over their control over the monetary system. Even though bitcoin can get mass adoption from the people, without acceptance from the government, it can not make any big impact on the currency war

[bassbity]

Bitcoin can very well become a great investment asset for the governments the way they invest in gold today. We have already seen corporates jumping into this crypto bandwagon. But if you are talking about replacing the current financial system, that's not gonna happen!

So I see your argument as a speculation. You can also consider my argument as a speculation. But I don't really see bitcoin becoming a mainstream currency system!

it is true, making bitcoin the main currency is the method that will be determined by many people. even a country that has become bitcoin neutral in its own country, leaving it without ban will end in battle and the closure of access to the exchange routes. Even in times of pandemic governments are spending their money at will, we can still keep bitcoin as an asset that can save all economies from the collapse of the devaluation system.

[Hydrogen]

During World War II the majority of the civilized world was bombed back to the stone age. With the exception of two nations: russia and the united states. This set the stage for the remaining economically viable states, USSR and USA, profiting handsomely from european and asian reconstruction efforts. Which would later culminate in the space race and cold war.

It is worth mentioning european and asian nations being recipients of reconstruction loans gave both soviets and americans considerable leverage. A neglected observation which applies to the current day world. Deficits have creditors and debtors. Who they are and why it matters.

There are many observations and illustrations which could be drawn concerning the relationship between the US and china. Facets of capitalism were adopted to avoid the economic stagnation and eventual self destruction which characterized the soviet union. But it could be accurate to say china still suffers from circumstances identical to that which plagued the soviet union due to the CCP's insistence on owning and controlling everything within china's borders. Negative sentiments towards bitcoin from china's leaders could be one prime example of it. China embracing bitcoin could create jobs and boost the countries economy. Yet chinese leaders prioritize control over success, which could be one reason they might never surpass the united states.

[Twentyonepaylots]

Bitcoin could definitely triumph over the currency wars itself, but it's greatest defining factor could also become its biggest downfall. I'm talking about its intangibility and hoe it heavily depends in energy to exist. Most would agree that without the internet, bitcoin wouldn't have the higher ground. So nations could basically initiate a world war that could heavily impede technologixal advancement, with the inclusion of the internet to destabilize its value and put the power scepter back to fiat, as easy as that.

[angels2apples]

Bitcoin could definitely triumph over the currency wars itself, but it's greatest defining factor could also become its biggest downfall. I'm talking about its intangibility and hoe it heavily depends in energy to exist. Most would agree that without the internet, bitcoin wouldn't have the higher ground. So nations could basically initiate a world war that could heavily impede technologixal advancement, with the inclusion of the internet to destabilize its value and put the power scepter back to fiat, as easy as that.

The internet is the most influential invention of the 20th century and has and will completely define the 21st Century. There is no way in hell that the world's superpowers would purposely hinder the internet and technological advancement to disrupt bitcoin. The entire fiat system runs off the internet so it would be the technological equivalent of kneecapping one's self. Central Banks are moving toward central bank digital currency and the internet is fundamental to their administration so this sentiment is really off base.

[Darker45]

I think Bitcoin is not actually involved in the currency war that you are talking about.

There are two currency wars right now. There is that fiat currency war in which the Renminbi is trying to take the global spot of the USD, the Pound Sterling trying to rise and rise against the Euro, and so on and so forth. There is also that currency war in which cryptocurrencies which is, of course, represented by Bitcoin taking up fiat currency as one.

The former, Bitcoin cares not. As regards the latter, everybody knows fiat is a huge underdog.

[Sithara007]

I think Bitcoin is not actually involved in the currency war that you are talking about.

There are two currency wars right now. There is that fiat currency war in which the Renminbi is trying to take the global spot of the USD, the Pound Sterling trying to rise and rise against the Euro, and so on and so forth. There is also that currency war in which cryptocurrencies which is, of course, represented by Bitcoin taking up fiat currency as one.

The former, Bitcoin cares not. As regards the latter, everybody knows fiat is a huge underdog.

I have to disagree. As such there is no competition between fiat currency and cryptocurrency. Nowadays hardly anyone is using Bitcoin as a currency. Most of them are using it as a form of speculative investment asset, or as a store of value. Bitcoin is not actually designed for usage as a currency, which can do instant payments. Regardless of the fee, the average time required for new blocks is 10 minutes and that means that instant payments are not possible with Bitcoin.

[davis196]

The USA and China might be competing,but they are also actively trading with each other.
It's true that Bitcoin benefited from the insane money printing around the world,but the money printing wasn't caused by the US/China conflict.I don't believe that Bitcoin is going to be the main winner of this conflict.
Probably the Federal Reserve System and the People's Bank of China will finally create CBDC and force their citizens to use them,while trying everything they can to throw Bitcoin under the bus.

[Kong Hey Pakboy]

Bitcoin is no doubt one of the best assets to invest but it does not show any sign to become the next main currency. No government will let such a phenomenon take over their control over the monetary system. Even though bitcoin can get mass adoption from the people, without acceptance from the government, it can not make any big impact on the currency war

It won't show any signs even in the foreseeable future, the population is steadily growing and I don't think that even after the last block is mined at year 2140, bitcoin won't be enough for it to circulate around the world considering by that time we might hit a 10 billion population mark. The only way to win these currency war that everyone is pertaining is not to participate in it but instead at the least coexist with the current system.

[zanezane]

~

I don't know why people think about this way while in reality bitcoins cannot overcome any fiat currencies around the world since first bitcoin has no legal laws that allows it to use on government financial system as well bitcoin still questionable due to some shady activity in relation on how this one used. And even if we go digital most provably each country will create their legal digital currency and bitcoin will just an option.

I'm not thinking negative about this possibilities but in reality this currency winning war is almost impossible to win by bitcoin without law supporting it.

Law definitely plays a role as to why it won't win in this war but I think that is just one part of the problem. I think that in economic perspective, bitcoin isn't viable as a means of currency because right now the network that is supporting bitcoin is having a hard time catering the transaction passing through which results in network congestion which means that the receiver has to wait for days to receive the payment.

[amishmanish]

When speculating on who will become the dominant economic power between USA and China, one should keep the Bitcoin argument away. Bitcoin's dominance has nothing to do with these geo-political issues and it cannot be an alternative in a world where China overtakes the USA.

China just doesn't have the goodwill, soft-power status that USA has enjoyed for several years. This is mainly also due to American people being a force for good in the rest of the world through generations. Whether as volunteers or wealthy philanthropists. The Chinese on the other hand are a bunch of profit-seeking zombies who will sell synthetic babies if that is where the profits are.

The two just don't compare. For anybody that disagrees, I recommend watching the interaction between Elon Musk and Jack Ma of Alibaba. It is hard not to distinguish the sheer difference in their visions and intellectual honesty. While Jack sounds like the typical businessman bullshitting his way through with quotable quotes, Musk is the smart, honest one thinking about real problems. The Chinese people have a lot to do before the world can find them trustworthy of a spot amongst the best of humanity.