Bitcoin Replacing U.S Dollar as the global Reserve Asset

[BIN-BIN]

Due to the U.S. economic recession, the sustainability of the U.S. dollar as the world's main reserve currency has been tested, which may cause the U.S. dollar to fall from its status as the world's reserve currency.
From the current point of view, Bitcoin has withstood the test of the market.

This year alone the government has printed up to 60 billion dollar which are injected into the economy as the stimulus package to help sustain the dwindling economy but this can only increase inflation and at that the world need a deflationary currency with a fixed supply just like Bitcoin to serve as the global exchange currency.

[Kakmakr]

This is simply a pipe dream and not something that governments will ever allow. Do not underestimate governments commitment to preserve their local Fiat currencies. The US as a economic super power, will protect that status with violence... like we have seen with previous administrations. (Bush)

The reason why they are doing this, is because they can manipulate "supply" of the reserve currencies and they do not have that power to manipulate Bitcoin. The closest you will ever see Crypto currencies becoming a reserve currency, is when governments develop their own government coins (GovCoins) ..where they control the mining/protocol/developers ...etc. 

[ROSERTY]

Bitcoin is very volatile. Its development has proved its long-term preservation of value as a store of value, but it has not been accepted by all countries in the world as a currency transaction. Many countries are still banning the use of Bitcoin. Bitcoin must be accepted by the world more like a currency before it can be regarded as the world's reserve currency. But now it seems unlikely that Bitcoin will replace the U.S. dollar as the global reserve currency, and there is no sign that the world may abandon the U.S. dollar anytime soon.

[RILWAN]

If you have been following recent development in legislation and policies, you discover that government in drawing means for cryptocurrency regulation and bitcoin is on the center stage of this development which will ultimately make bitcoin a legal asset but for bitcoin to become the world global exchange currency will take some decades to achieve that status due to so many factors such as price stability and decentralized nature of bitcoin.

[BlackHatCoiner]

Why would governments hold something as volatile as Bitcoin in their reserves? The lives of millions of people in each country depend on those reserves, now imagine there's the usual 50% "dip", how would a country survive that?

As long as most of the Bitcoins are owned by individuals, they won't. But, even with these fluctuations it has achieved increasing by 180% every year since the first halving on average. So, for a country, it'd be very profitable to adopt it all these years. It may still is.

Gold was also owned by individuals few centuries ago, I don't know if that tells you anything. I know, I've become pretty bullish, but that's how I picture it. 

[electronicash]

Lol! I don't see it happening ever. Unless,

1. China attacks America with nuke and vice versa and then both countries disappear
2. Hyperinflation enters US
3. Taliban overtakes Washington DC

In a nutshell, US has to fall from the position of a superpower for bitcoin to become a reserve currency. Also most other nations should not be in a position to become another superpower.

Government dislikes anything that is not controlled by them. So I don't see it happening ever!

you can actuallly forsee it coming because all these super power countries today seem preparing for war. even UK that isn't too powerful is trying to portray like they are in South China Sea.  for now you can see skirmishes in Lebanon, Afganistan which Biden is once again sending troops.

if BTC becomes Digital reserves without war, then all the.series of debates about crypto bill amendment are just soap opera.

Let everyone be prepared for war! But an actual war amongst the super powers are very very unlikely to happen! There will be wars in middle east or similarly weaker countries. But when it comes to super power, no wars will take place. So if you think China will engage in war with US, that's a negative. US understands their power well and vice versa. If super powers engage themselves in war, that will be the end of the humankind. So neither war will ever happen, not bitcoin will become the world's reserve currency.

we will see. but an empire about to step down, i don't think they'd just allow that to happen without a fight. $1.5T for an infrastructure bill, you know how much is allocated for buildings and roads and bridges? it's only $110B. cybersecurity budget is just $47M.

the rest are for military weapons. how do you see what will happen when US warships are in the Crimea Sea which is closer to Russia who they make it appear as the boogey man of the world.

[virasog]

This is simply a pipe dream and not something that governments will ever allow. Do not underestimate governments commitment to preserve their local Fiat currencies. The US as a economic super power, will protect that status with violence... like we have seen with previous administrations. (Bush)

The reason why they are doing this, is because they can manipulate "supply" of the reserve currencies and they do not have that power to manipulate Bitcoin. The closest you will ever see Crypto currencies becoming a reserve currency, is when governments develop their own government coins (GovCoins) ..where they control the mining/protocol/developers ...etc. 

Yes, that's true. The government will never allow Bitcoin to take control as a alternative currency. If this happens then the government will lose control over the financial system of the country. And no government will allow this.

[hatshepsut93]

As long as most of the Bitcoins are owned by individuals, they won't. But, even with these fluctuations it has achieved increasing by 180% every year since the first halving on average. So, for a country, it'd be very profitable to adopt it all these years. It may still is.

Gold was also owned by individuals few centuries ago, I don't know if that tells you anything. I know, I've become pretty bullish, but that's how I picture it. 

You can't use 12 years of performance to make reliable forcasts into the future. Sure, governments could theoretically put a small fraction of their reserves into Bitcoin, but OP is talking about replacing US dollar, the most popular reserve currency in the world. Imagine a poor country converting 40% of their reserves into BTC and the height of a bubble, see it crash 80% over a few months and now they are unable to provide basic government services. Government can't and shouldn't gamble with their peoples money.

Gold is a poor example, it has been used by humanity for thousands of years, and even early governments held it in their treasuries.

[DarkDays]

Nothing we say will make it such as the government fund reserves see BTC as the global reserve asset that quickly. And, it makes sense.

The coin and technology devised from it is absolutely amazing, extremely innovative but we are still far off from having BTC on that scale, the infrastructure to support this wide adoption is not yet there. Yes, it would be great (in time) to become a global reserve assets but to make that happen there's so much more work to do...The lightening network is an example of the improvements required to make such large-scale adoption.

[Levero]

If a currency becomes a global reserve asset, it must be accepted by all countries in the world.

As an emerging cryptocurrency with a history of more than ten years, Bitcoin has not yet been accepted by everyone, and some countries have even cracked down on banning the use of Bitcoin.

Bitcoin's price fluctuates greatly and is unstable, and it cannot be used as a stable currency. At present, it is impossible for Bitcoin to replace the U.S. dollar as a global reserve asset.

[davis196]

A financial asset can serve as a global reserve,only if it has a stable and predictable price.
This is the first requirement.I'm not going to discuss mass global adoption and the other requirements.
Does Bitcoin have a stable price?Nope...
It think that this discussion is pretty old and you didn't add anything new to the table.
Your theory is that Bitcoin will replace USD,only because it has scarcity.
Well,diamonds also have scarcity.Are diamonds accepted as a global reserve asset?Nope...

[andeluna]

In my insight when it comes to this topic it will probably become true that bitcoin will replace U.S dollar as a global reserve asset its because the upcoming generation bills money or coins will remove and it will change with the e-money or lets say crypto currency like bitcoin. Some country is now a cashless society thats why its possible to happen that the whole world will become a cashless thats why covid 19 virus created to make it possible in the near future.

[Kong Hey Pakboy]

I don't think US is going to like that idea although we will see China and Russia bolster their support of bitcoin as a reserve currency because they've always wanted to dethrone especially China, the dollar as a reserve currency for many countries because they see them as a competition.

[RILWAN]

the opps is looking at it from the economic and inflation perspectives and as that bitcoin have a long way to go in becoming a global asset, the level of bitcoin acceptance is still low and many countries of the world don’t recognize bitcoin as a legal tender.

[AicecreaME]

With the mainstream and institutional adoption of Bitcoin, the coast is becoming clearer to analyze bitcoin becoming the global reserve currency if the current trends continue till 2025 I see bitcoin rendering the present reserve system useless because Bitcoin will outperform another global reserve asset in terms of price and market cap and circulation reason being that.

Factors that will put Bitcoin over the U.S dollars as global reserves.

1. The major reason that will pave the way for bitcoin to become the global reserve asset is the fact that Bitcoin has a fixed calculating supply of 21 million Bitcoin which can not be added and this makes the currency immune to inflation.

Unlike the U. S dollars, the government can print additional currency notes at will, which makes it prompt to inflation, and has no calculating supply.

With the current global economic meltdown, which gave birth to a high inflation rate, the world trade union will not hesitate to replace U.S dollars with a currency that has a fixed supply and market dominance like Bitcoin in the future when the enabling environment is created.

WHAT ARE YOUR VIEWS ON THIS?

I don't really think this will happen. It is too ideal, to begin with.

I have a question. If you belong to the government, would you invest in something knowing that it is volatile? I think not. It has a low probability that the government would invest in something with a value that is highly volatile because the funds will be at a very big risk. When the market crashes, their funds will be compromised as well. Hence, why would they pick bitcoin to be a reserve asset?

In addition, the decentralized nature of bitcoin is non-negotiable for them. They can't control it because it is their nature in the first place. No matter how hard they try to regulate it, they can't totally erase the decentralized nature of bitcoin. They can't manipulate it and they can't just produce it and print it like what they usually do with fiat such as dollar whenever things go haywire. And they don't want that. The government loves to take control and take over almost everything, hence bitcoin and any cryptocurrency will be the last on their list if ever they will try to replace US dollars in global reserve.

[bittraffic]

I don't think US is going to like that idea although we will see China and Russia bolster their support of bitcoin as a reserve currency because they've always wanted to dethrone especially China, the dollar as a reserve currency for many countries because they see them as a competition.

Its not the primary goal of BTC but if it becomes a reserve currency, China wil be the first to jump to celebrate. They've been praying for USD's defeat for so long, some believed this is the goal of their CBDC. The over printing of USD today seem to be funny for their government.

Will it be good for us if most if not all countries will be using decentralized currency except China?

[BuNga_cute]

If a currency becomes a global reserve asset, it must be accepted by all countries in the world.

As an emerging cryptocurrency with a history of more than ten years, Bitcoin has not yet been accepted by everyone, and some countries have even cracked down on banning the use of Bitcoin.

Bitcoin's price fluctuates greatly and is unstable, and it cannot be used as a stable currency. At present, it is impossible for Bitcoin to replace the U.S. dollar as a global reserve asset.

Bitcoin requires legality from all countries in the world in order to become a global reserve asset. And for now it is impossible for that to happen,
because there are still some countries that reject Bitcoin. But with Bitcoin's performance continuing to improve, it is expected that confidence
in Bitcoin will continue to increase. I know it's not easy for all countries to accept Bitcoin, but let Bitcoin show its quality. I believe even though
it is a long process, in the end Bitcoin can be trusted as a global reserve asset.

[Poker Player]

I don't really think this will happen. It is too ideal, to begin with.

I concur with this opinion and the majority of responses. We would like Bitcoin to become a global reserve asset replacing the USD, but if that happens it will take a long time. It has some intrinsic characteristics that could allow it to be so in the future, such as its deflationary nature, but as of today it is more a fantasy than a reality. Would states and central banks have to buy Bitcoin for their reserves as well, for that to happen, and that is not likely to happen in the near future. .

[conected]

If a currency becomes a global reserve asset, it must be accepted by all countries in the world.

As an emerging cryptocurrency with a history of more than ten years, Bitcoin has not yet been accepted by everyone, and some countries have even cracked down on banning the use of Bitcoin.

Bitcoin's price fluctuates greatly and is unstable, and it cannot be used as a stable currency. At present, it is impossible for Bitcoin to replace the U.S. dollar as a global reserve asset.

Bitcoin requires legality from all countries in the world in order to become a global reserve asset. And for now it is impossible for that to happen,
because there are still some countries that reject Bitcoin. But with Bitcoin's performance continuing to improve, it is expected that confidence
in Bitcoin will continue to increase. I know it's not easy for all countries to accept Bitcoin, but let Bitcoin show its quality. I believe even though
it is a long process, in the end Bitcoin can be trusted as a global reserve asset.

- The figures you said make me imagine that bitcoin has been accepted by the majority of countries and only a few are against when in fact a few are not against but the vast majority are hating anything related to bitcoin, its quality and performance is not the problem, the problem is how to convince the users to give it up and give it to the government at a friendly price to become a global reserve asset. Property coercion is also possible but freely providing information is everyone's right, they don't like to take inventory of property, reserve is also not applicable

[Gyfts]

It's nonsense, there's no relation between inflation and global reserve asset.

To become global reserve asset need a lot requirement :
1. Flexible to convert and can be used in foreign countries.
2. Stability and transparent
3. Every countries accept and trust it.

Bitcoin can be global reserve asset when the price is already million, so it's will be more stable and of course every countries already accept since they already believe about Bitcoin. But 2025 is too soon, probably 10-25 years more we can see Bitcoin become global reserve asset.

I think he was saying that Bitcoin can't be inflated through creating new coins, because you can't.

Regardless, you can still have inflation if the banking intuitions on the governmental level start taking on debt in the form of securities that they can't pay back. You still end up increasing the money supply because you're interjection fiat onto private institutions which will then distribute the money through loans and such. Now, with Bitcoin you're not going to increase the supply of coin so BTC acting as a global reserve isn't a bad idea. It'll keep governments honest when they want to go out take on trillions in asset liabilities and want to mess with the inflation rate.