Could Bitcoin one day become the global reserve currency?

[Fortify]

Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.

- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.

- Also, it has been known and traded for years but still has very high volatility. With this appearance, it scares new investors. Because everyone expected it to have a more balanced price performance.

- World history is full of wars. Perhaps we are living through one of the best periods in history. But because of us homosapiens, our world is very prone to chaos. Coins that do not have an armed force behind them, such as Bitcoin, may be a little unlucky in this regard.

I think these three problems may not be solved and these three problems may prevent bitcoin from being a reserve currency.

What do you think about the subject? Can you share some enlightening information for me?

It's highly unlikely Bitcoin or any cryptocurrency could ever achieve this status, not least because the USA gets a lot of perks from hosting this status and would put up an incredible fight before they relinquish it. They're more likely to ban cryptocurrency outright if the idea of this threat were to ever become real, that would naturally prevent it from happening as they are one of the largest and most dynamic economies in the world. There is another issue that is more likely to prevent it from happening - Bitcoin is too inflexible, sure you can go to infinite decimal places, but that kind of defeats the supposed "zero inflation" ability and the transaction ability is simply not fast enough, plus there will be the ever present danger of a 51% attack or other vulnerability.

[Fivestar4everMVP]

Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.

- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.

- Also, it has been known and traded for years but still has very high volatility. With this appearance, it scares new investors. Because everyone expected it to have a more balanced price performance.

- World history is full of wars. Perhaps we are living through one of the best periods in history. But because of us homosapiens, our world is very prone to chaos. Coins that do not have an armed force behind them, such as Bitcoin, may be a little unlucky in this regard.

I think these three problems may not be solved and these three problems may prevent bitcoin from being a reserve currency.

What do you think about the subject? Can you share some enlightening information for me?

Well, for what I know about money, it is any accepted means through which the people carry out their day to day transactions, in a sane society, the people are the government, if the entire people of the world should decide to start accepting bitcoin either as a reserve currency or means of transaction, or even both, the so called powers that be would become powerless.
It is in our hands to make bitcoin become super successful, and it is also in our hands to break bitcoin.

[Yatsan]

Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.

- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.

- Also, it has been known and traded for years but still has very high volatility. With this appearance, it scares new investors. Because everyone expected it to have a more balanced price performance.

- World history is full of wars. Perhaps we are living through one of the best periods in history. But because of us homosapiens, our world is very prone to chaos. Coins that do not have an armed force behind them, such as Bitcoin, may be a little unlucky in this regard.

I think these three problems may not be solved and these three problems may prevent bitcoin from being a reserve currency.

What do you think about the subject? Can you share some enlightening information for me?

It's highly unlikely Bitcoin or any cryptocurrency could ever achieve this status, not least because the USA gets a lot of perks from hosting this status and would put up an incredible fight before they relinquish it. They're more likely to ban cryptocurrency outright if the idea of this threat were to ever become real, that would naturally prevent it from happening as they are one of the largest and most dynamic economies in the world. There is another issue that is more likely to prevent it from happening - Bitcoin is too inflexible, sure you can go to infinite decimal places, but that kind of defeats the supposed "zero inflation" ability and the transaction ability is simply not fast enough, plus there will be the ever present danger of a 51% attack or other vulnerability.

Instability alone is in contrast with the concept of a currency reserve. Anything which market price is changing from time to time, is a no-no for savings or reserve as termed in this topic. If it is reserve, you are not seeking for profit potential but rather, security of funds and stability if not upward market price movement. But as long as there is risk of a downfall with its price, then that is already something to consider not to. Zero inflation? it won't be aided that way. With regards to transactions, there are many rooms for improvement because right now, transactions ruch through numerous chains in order to be sent which makes it slow. But as this industry is expanding over years, such feat would be solved afterwards. It is just volatility of this asset which is the bottomline.

[Wong Gendheng]

Bitcoin is increasingly popular especially when prices rise or are more expensive, there are ideas from many countries to immediately make bitcoin equivalent to fiat so that it can help when there is a large crisis or inflation that is uncontrolled, some countries have officially announced to legalize bitcoin and in my opinion the trend of bitcoin will continue improved

[TribalBob]

Volatility is the main reason why btc will not become the reserve currency of one country or company, even though there are companies that announce this, they already know the worst possibility that they will get, and I don't believe that one company will continue to hold their btc when btc experiences an increase tall one

[Sir Legend]

Of course you can, the world needs a financial system that is strong and resistant to inflation, if you use 1 or 2 currencies it will certainly make it unfair, but if you use bitcoin it will be fairer and acceptable globally, moreover the bitcoin community continues to increase and according to reports it has reached more than 100 million active users.

[Smartprofit]

Volatility is the main reason why btc will not become the reserve currency of one country or company, even though there are companies that announce this, they already know the worst possibility that they will get, and I don't believe that one company will continue to hold their btc when btc experiences an increase tall one

Bitcoin volatility only occurs when its price is measured in fiat currency. 

If one day central banks decide that Bitcoin is the benchmark of money and the measure of the value of all things, then Bitcoin's volatility will no longer be an issue.  The continuation of the collapse of the world globalization system and the growing mistrust between different countries can push the Central Banks to such a decision. 

If countries endlessly wage economic wars with the use of economic sanctions (including against the national currencies of opponent countries), then such a decision can be made. 

The banking system needs stability, and Bitcoin is a deflationary international currency based on the power of a mathematical algorithm, not on the ambitions of individuals or states.

[blockman]

I would say that it is a "reserve currency" for the people, maybe not so much for the governments, that could be the case in this situation. I agree that there are a lot of people who have savings in bitcoin right now and that is definitely a great thing, definitely something to cherish because it means the idea of "peoples money" instead of being America's money or brits or French or German's money, it's global, and that matters a lot.

I personally believe that the best thing to do today would be having some sort of understanding that we could be seeing some governments pick this up and realize people love it and eventually start investing into it a bit.

Yeah, I'd agree that it is for the people including us. We do like the concept of it and it's really actually for the people and that's why this invention is totally getting to the nerve of the governments. Some are just against it but the majority are liking what's with on its value.
That just can't be stopped but who knows if we get to see that a big country would announce that they're making bitcoin as their reserve just as par with gold being a reserve. That might be a crazy idea to think now but everything that's happening with bitcoin right now have probably thought by early adopters to be something crazy as well so, who knows then?

[TheUltraElite]

Of course you can, the world needs a financial system that is strong and resistant to inflation, if you use 1 or 2 currencies it will certainly make it unfair, but if you use bitcoin it will be fairer and acceptable globally, moreover the bitcoin community continues to increase and according to reports it has reached more than 100 million active users.

Point is whether the big institutions find it useful or not. These decisions are not made by an internet forum member group rather they are done in an international forum where people from different countries come together and put forward their opinions and suggestions. In such a space, bitcoin has a clear disadvantage and a lot of groundwork is needed before this stage in order to put bitcoin at an advantage.

What we should do is keep hope and gather more people into the use of crypto in daily lives. Gradually the local governance will take notice and from there we can grow to a bigger forum.

[Bitcoin2009]

If the number of users continues to increase then bitcoin can become the global reserve currency, even though many countries are still banned cryptocurrencies but the number of communities that continues to grow certainly cannot be stopped so I'm sure if bitcoin can last for another 10 years then the number of users may have been more than 1 billion and deserves to be the global reserve currency.

[Lorence.xD]

Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.

- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.

- Also, it has been known and traded for years but still has very high volatility. With this appearance, it scares new investors. Because everyone expected it to have a more balanced price performance.

- World history is full of wars. Perhaps we are living through one of the best periods in history. But because of us homosapiens, our world is very prone to chaos. Coins that do not have an armed force behind them, such as Bitcoin, may be a little unlucky in this regard.

I think these three problems may not be solved and these three problems may prevent bitcoin from being a reserve currency.

What do you think about the subject? Can you share some enlightening information for me?

It's highly unlikely Bitcoin or any cryptocurrency could ever achieve this status, not least because the USA gets a lot of perks from hosting this status and would put up an incredible fight before they relinquish it. They're more likely to ban cryptocurrency outright if the idea of this threat were to ever become real, that would naturally prevent it from happening as they are one of the largest and most dynamic economies in the world. There is another issue that is more likely to prevent it from happening - Bitcoin is too inflexible, sure you can go to infinite decimal places, but that kind of defeats the supposed "zero inflation" ability and the transaction ability is simply not fast enough, plus there will be the ever present danger of a 51% attack or other vulnerability.

Instability alone is in contrast with the concept of a currency reserve. Anything which market price is changing from time to time, is a no-no for savings or reserve as termed in this topic. If it is reserve, you are not seeking for profit potential but rather, security of funds and stability if not upward market price movement. But as long as there is risk of a downfall with its price, then that is already something to consider not to. Zero inflation? it won't be aided that way. With regards to transactions, there are many rooms for improvement because right now, transactions ruch through numerous chains in order to be sent which makes it slow. But as this industry is expanding over years, such feat would be solved afterwards. It is just volatility of this asset which is the bottomline.

Reserved doesn't mean it always talks about the value of token or money. We're all aware the volatility of the bitcoin which can affect its value from time to time. But it doesn't mean to hold it just to gain profit but to reserved it in a long period of time like a gold where we can see in other banks. In any economic situation having a reserved is a good way to survive such fall of the economic and the market. And also I share to you my experience from my grandma, she always keep old money from the past years some of them is like 30 years old already. But if you ask me how much they worth each? They worth like $200 but back in the day its value only around $1. We choose to reserve it for a long period of time which I could compare to this situation.

[redsun114]

Reserved doesn't mean it always talks about the value of token or money. We're all aware the volatility of the bitcoin which can affect its value from time to time. But it doesn't mean to hold it just to gain profit but to reserved it in a long period of time like a gold where we can see in other banks. In any economic situation having a reserved is a good way to survive such fall of the economic and the market. And also I share to you my experience from my grandma, she always keep old money from the past years some of them is like 30 years old already. But if you ask me how much they worth each? They worth like $200 but back in the day its value only around $1. We choose to reserve it for a long period of time which I could compare to this situation.

I think it has to do with the value because if it isn't then they will use any thing or non-valuable things as a reserved. If you will say it has nothing to do with the volatility, then that's sounds better. Bitcoin is volatile but it can still recover no matter how low it dips and then there are times that it can became stable. If they will only look at this, they will not hesitate to use Bitcoin as a reserve.

In fact, Bitcoin can fit better on this position or as a reserve currency because it was a currency but gold is more like an asset. Your grandmas' story was interesting but I think it's different from what we are talking about here.

What she was doing there is more like a hobby of coin collecting but she was lucky that the value of those coins increases instead of depreciating due to the inflation like what happened with the dollar for example. Well, I guess that's because those coins are rare now or considered to be an antique.

[bestcoins1]

If the number of users continues to increase then bitcoin can become the global reserve currency, even though many countries are still banned cryptocurrencies but the number of communities that continues to grow certainly cannot be stopped so I'm sure if bitcoin can last for another 10 years then the number of users may have been more than 1 billion and deserves to be the global reserve currency.

More precisely not to be a global reserve currency, but to be a currency for additional payment options after fiat. This means that Bitcoin can be used to buy any item needed by everyone if all countries have adopted it as the legal currency for payments. So everyone will find it easy because when someone who doesn't have fiat in his pocket, but he has Bitcoin in his wallet, he doesn't have to bother looking for fiat if he wants to buy something. Just use Bitcoin to complete the purchase when Bitcoin can be used by many people for payment.

[South Park]

Of course you can, the world needs a financial system that is strong and resistant to inflation, if you use 1 or 2 currencies it will certainly make it unfair, but if you use bitcoin it will be fairer and acceptable globally, moreover the bitcoin community continues to increase and according to reports it has reached more than 100 million active users.

Point is whether the big institutions find it useful or not. These decisions are not made by an internet forum member group rather they are done in an international forum where people from different countries come together and put forward their opinions and suggestions. In such a space, bitcoin has a clear disadvantage and a lot of groundwork is needed before this stage in order to put bitcoin at an advantage.

What we should do is keep hope and gather more people into the use of crypto in daily lives. Gradually the local governance will take notice and from there we can grow to a bigger forum.

One of the main disadvantages is that there is no one that is willing to speak on bitcoin’s behalf, the US has no problem promoting and even forcing the use of the US dollar around the world, but when it comes to bitcoin due to its decentralized nature there is no one there which is talking positively about it, and since at those conferences and reunions is where the big decisions are taken then we can assume that there is still a long way to go before bitcoin could be used as a reserve currency around the world.

[Captain Corporate]

I think there is a good chance that we could see it become "a" reserve currency, but not the main one. I mean it is obvious that we are talking about more and more nations eventually buying up bitcoin in bulk, its not going to be as high as fiat currencies, the top three would probably be covered already, but it could go into top 20 of most big nations, and that is still a huge huge deal, its a deal that can take us to a million dollars when the day comes. This is why I believe that we shouldn't really be worried about the price of today, because I believe the price of tomorrow will be a lot bigger and that's why I am happily investing today.

[Gyfts]

Bitcoin is not going to become global reserve currency for one reason, I think the most obvious reason right now is that governments do not fully support bitcoin as a currency or means of payment. So far the government or relevant institutions do not hold large amount of bitcoin, hence bitcoin will not become a foreign reserve. After all, governments cannot control bitcoin, that is another reason why bitcoin will not become global reserve currency.

I'm not sure volatility is the most compelling reason why bitcoin can't be global reserve currency, but bitcoin's decentralization is the main reason why it can't be global reserve currency.

A reserve currency doesn't have to have government endorsement. USD is the current reserve currency -- and the U.S. has plenty of adversaries that forcefully hold the currency for the sake of participating in the global economy. China, Russia, etc. would love nothing more than to not rely on the United States currency system in order to trade which is why USD is being dumped out of currency reserves at record rates due to high inflation and overzealous sanctions. It's within the interest of countries to adopt a decentralized asset that isn't prone to the typical political manipulation that USD is subject to.

Gold solves the issue but for logistical reasons, it isn't feasible to conduct bilateral transactions through gold. Crypto fits the bill quite well.

[loopes]

Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties.

The third party of crypto currency or blockchain technology is the miners they handle the role to legatimize transactions of bitcoin and ensuring their validity. They process the computational work in network to break the tie every node. Miners transmit a block to the network after win the PoW (proof of network). you can see this scheme as an ilustratio.

It has great features.
- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.
-snip-
What do you think about the subject? Can you share some enlightening information for me?

energy consumption of bitcoin is not always profligate. it depends on how the electricity is produced, almost majority of developed country use environmentally friendly power plant.
Af of August 2022, i found the data that says the total global electricity usage of the crypto assets were between 120 billion kilowatt-hours and 240 billion kilowatt-hours. This amount is huge enough for electricity usage per year. But we should compare this number to the total of annual global electricity usage. global electricity usage of the crypto assets is equivalent to 0.4% to 0.9% of annual global electricity usage. so your statement that says bitcoin has very high energy consumption is not really true.

You can learn more about this from this reference =
FACT SHEET: Climate and Energy Implications of Crypto-Assets

[Paul Pogba]

In my opinion, the strongest candidate to become the global reserve currency is bitcoin. Currently, there are many countries that oppose the use of USD because it is considered detrimental. This can be an entry point for using bitcoin.

Let's wait to see if a country will soon appear that uses official bitcoin and is equivalent to the legal currency.

[doomloop]

A reserve currency doesn't have to have government endorsement. USD is the current reserve currency -- and the U.S. has plenty of adversaries that forcefully hold the currency for the sake of participating in the global economy. China, Russia, etc. would love nothing more than to not rely on the United States currency system in order to trade which is why USD is being dumped out of currency reserves at record rates due to high inflation and overzealous sanctions. It's within the interest of countries to adopt a decentralized asset that isn't prone to the typical political manipulation that USD is subject to.

Gold solves the issue but for logistical reasons, it isn't feasible to conduct bilateral transactions through gold. Crypto fits the bill quite well.

Even if crypto fits the bill very well as per the criteria mentioned, what about volatility? Don't you think that could be an issue for countries that would show interest in using it as their reserve currency and using it as payment for global trades? What would happen if the price falls significantly just like it did in the past? How would the countries behave in a situation like that?

I believe this is one of the reasons why Bitcoin will probably fail as a reserve currency unless every country accepts the fact that they will face a loss of monetary value every time the price falls.

[TheUltraElite]

One of the main disadvantages is that there is no one that is willing to speak on bitcoin’s behalf, the US has no problem promoting and even forcing the use of the US dollar around the world, but when it comes to bitcoin due to its decentralized nature there is no one there which is talking positively about it, and since at those conferences and reunions is where the big decisions are taken then we can assume that there is still a long way to go before bitcoin could be used as a reserve currency around the world.

True bitcoin does not have a single spokesperson and it was intended to be like that, rather the people are its spokesperson. This is tough to handle on a global stage where every country is trying to squeeze it in their own needs and nuances. While bitcoin has a long way to go these conferences and all dont help much because they are focussing more on altcoins and newly launched shitcoins and doing expositions for them. They have reduced in frequency but they havent yielded much for the bitcoin community.

Exchanges and casinos know that bitcoin is the main asset for them so they do their part, gradually there should be more traction in sector, lets be hopeful and keep gathering more.