These are the most basic features of Bitcoin. It owns some characteristics of gold and advantages that gold does not have and is the best choice for super-sovereign currency. Maybe someone would say that the price of Bitcoin is very volatile, not suitable to be the international reserve and settlement currency. As I see it, this counts on the current stage of Bitcoin. It is still in the earliest stage of Bitcoin's development, far from reaching global consensus. In one to two decades, when the price of Bitcoin reaches 1 million or even 10 million dollars, the overall market value of Bitcoin can completely cover the economic behavior of the entire world, then its price will tend to be stable. At that time, a new currency system centered on Bitcoin will be formally established. That is the necessity for human civilization to forge ahead and on one can resist.
I'm interested to discuss this gotten out of your note you have made
So do you think that bitcoin volatility is caused because it is yet to get to it maximum supply? Or that because it is in early stages? Sorry I don't think so. For example with Fiat, you see the banks regulate the financial system through the government issuing policies. You can see that an agency is taking responsibility and controls what happens with Fiat, who gets what against how much you request to withdraw. Banks creates limit to the amount an individual can withdraw at a time and for the day, likewise the institutions. Or why do you also think that ATMS limit how much for daily withdrawal, all these are regulation that ensures stability and control but, who controls or regulates how much bitcoin you can transfer to the next wallet? The exchanges are gradually coming into regulation (except that happens successfully) like what binance has done to limit withdrawal from 2btc to 0.06 for incomplete account verification.
I think regulation is part of what can reduce volatility, bitcoin is decentralized and that makes total regulation impossible I think.
I am not saying that Bitcoin has not yet reached the maximum supply, but that the market value of Bitcoin is not large enough to cover all human economic activities. When the market value of Bitcoin is large enough, its volatility is correspondingly not so large. Just like the current gold price, the fluctuations are relatively small. As you said, the current government's supervision and control policies can well maintain currency exchange rate fluctuations. This is a government intervention. But in the future, in the encrypted world, this kind of intervention will also exist, but it will be realized in the way of community governance. Just as with various DeFi projects, they are building a completely decentralized financial system. This decentralized financial system is slowly replacing the current financial system. At the same time, D
The governance system of eFi projects is also gradually improving, which is a regulatory policy in the crypto world.
I firmly believe that Bitcoin will truly become a super-sovereign currency in the next ten to twenty years, anchoring the economic and financial order of human society. What do you think?
I'm counting on it.
Countries can't get along on their own. Each country wants to be the top dog, and so they get into all sorts of hubris filled battles that their populaces fear might end in wars by swiping their own nations of resources. War is a battle over resources. Right now, the US is engaged in war in the middle east to maintain the dominance of the petrodollar, which provides resource benefits through the control of energy and the resources that controlling the world's reserve monetary supply brings.
Bitcoin ties us all together across cultures more than anything else. When your economic success in another part
of the world is tied up with my economic success, then we will be less likely to engage in the same negative behaviors.
For humanity to progress, we have to develop a more equitable supernational currency. Bitcoin is the best shot currently.
Bitcoin has a ways to get there before becoming a super-sovereign currency though.
It won't become one as long as there are specific groups that hold more access to the currency
than national powers. If this doesn't change, then national powers will move to other types of
cryptographic currencies -- for those that make this adjustment.
In order for bitcoin to become supernational, the question is:
what mechanisms can or will cause distribution to balance out -- if at all?
Yes, Bitcoin connects us all across cultures more than anything. In my opinion, in order for Bitcoin to truly become a super-sovereign currency and better achieve a balanced distribution, the most important thing is that we must continue to promote the thought behind Bitcoin. Many people now participate in Bitcoin, but only want to make money through Bitcoin and increase their wealth. The vast majority of people do not understand the thought behind Bitcoin. Bitcoin's decentralized thought will build a new way of life. When more and more people recognize the thought of Bitcoin, they will hold Bitcoin for a long time. People who buy Bitcoin purely for profit will sell the Bitcoin in their hands when the profit fits. This realizes the transition from short-term beneficiaries to long-term believers. This achieves a balance of chip distribution to a certain extent. Therefore, it is the best way to continuously promote the thought of Bitcoin and pass the Bitcoin consensus. This is also the purpose of writing these articles, to understand Bitcoin in depth from different angles.
