Diversification in Global reserves.

[DrBeer]

The fiat currency as we all know is subject to inflation. Needless to say, a lot of economies have gone down due to it, but today, we're going to be talking about the US dollar.
 
The US dollar has lost 98% of its purchasing power since 1971 and has gone through an 8% decline in its shares of global reserves in 2021. Now the thing is, if the USD continues to face inflation this much, do you think the Global reserve would be worth anything much in the future?
Lately, other countries have begun to carry out trade in currencies aside from USD due to US sanctions and other reasons including trade war with China and fed hikes to reduce inflation.

I'm April, Emmanuel Macron, the French president said that Europe must reduce its dependence on the US dollar to keep its strategic autonomy and avoid becoming vassals to America.
Although dollars play a huge role in the world financial system and cannot be replicated by other countries, it doesn't still change the fact that it's declining and we may need alternatives to occupy shares in the reserves.

Gold seems like a fine option, considering how its purchasing power, remains more stable over time, but do you think cryptocurrency stands a chance?

 Now don't get me wrong, we all know and understand that Bitcoin in particular is decentralized, hence making it an alternative to money. Anyway, I intentionally used crypto and not Bitcoin since there are centralized coins that can be controlled by the Fed like USDC & USDT ( another thing is if they hold value as much as gold to be included).

So, do you think cryptocurrency stands a chance in share of the global reserves, now that countries are opened to diversification through assets? 

- Inflation is a natural process, and only inept management of the economy leads to its collapse. Inflation is not a property of fiat money, it is the economy. And the impossibility of additional issuance of bitcoin funds limits its use as a state monetary system.

- The dollar has not lost 98% of its purchasing power Take Coca-Cola, now it costs about 1 dollar in the US. According to you in 1971 it cost.... Do the math yourself, assuming your PROPOSITION of 98%

- The EU has its own currency, and a fairly strong economy. The Euro was just introduced to strengthen the Eurozone

- Gold is a good alternative. But in today's world, as a currency, it is not suitable. And as a gold and foreign exchange potential of countries is INCREDIBLE. Because no country will allow an external audit of these reserves.

- what difference does it make to you whether you pay for dinner in "Fed controlled USTs" or in "decentralized bitcoin" ? 

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[tygeade]

Where's the competition?
China yes, huge, but export oriented, and export dependent economy, with lots of problems. Which will only get worse under the "new course of the party".

BRICS - the only stable and strong economy (against the background of other BRICS members) is India. So India has unambiguously voiced its vector of further development - western, with a developed western world, with western values, and without the support of rogue countries.
Tell me about the economies of the other BRICS members ? How can they compete ? NOTHING !
And India has chosen the optimal path - mutually beneficial cooperation, where India sees itself as the center of the "global south".

I would say whenever you try to attack others because you think they are much worse than your nation, you should remember the nation where people die because they can't afford healthcare. You can work for 60 years, invest and save carefully and then if you get cancer, not only you die of course but also everyone around you lost all those savings as well. All of your money is gone along with your life. Care to imagine which nation that is?

I think you probably know which one that is. This is why we should not just bash those nations, I agree that those are bad, but Dollar is not strong anymore, it is getting less and less valuable and eventually not many people will use it. I am not saying it will not be top ranked, it can stay top ranked, just not be 90% of our reserves anymore.

[YUriy1991]

So, do you think cryptocurrency stands a chance in share of the global reserves, now that countries are opened to diversification through assets? 

In my view, until now the US Dollar is still seen as the global reserve currency even though there are other minuses, namely that USDC & USDT are still very strong in the grasp/control of the monetary authority.

Well, I think what is happening now is very interconnected with the global economic situation which continues to be mobile and changing due to various factors and for the idea that the OP conveyed above, diversification of global reserves may need to be considered in this case for cryptocurrencies. But, I think there may still be a lot to consider because the main nature of crypto is still relatively unstable.

[DrBeer]

....
I would say whenever you try to attack others because you think they are much worse than your nation, you should remember the nation where people die because they can't afford healthcare. You can work for 60 years, invest and save carefully and then if you get cancer, not only you die of course but also everyone around you lost all those savings as well. All of your money is gone along with your life. Care to imagine which nation that is?

I think you probably know which one that is. This is why we should not just bash those nations, I agree that those are bad, but Dollar is not strong anymore, it is getting less and less valuable and eventually not many people will use it. I am not saying it will not be top ranked, it can stay top ranked, just not be 90% of our reserves anymore.

Since English is not my native language, maybe I didn't understand something, please clarify - about "I would say whenever you try to attack" - did you mean me ?  Am I attacking someone? Perhaps I am accusing someone of something?  And who do I consider worse than my nation? Please clarify, because it sounds rather strange or unclear, as far as I am concerned

And about the dollar. You know, just because the dollar has given up a little bit, it doesn't mean that others have taken its position. The problem is that you probably measure everything within the framework of the idea of "dedollarization". But the dollar, and all other currencies after the covid and political-economic cataclysms of 2022-2023, have been hit hard, and you can't name a single SIGNIFICANT currency that has only been getting stronger in recent years.

Well, de-dollarization itself is quite a new bubble that China and a couple other countries are trying to inflate first of all, but not for your salvation, but only for their own. Even if BRICS switch to kauri, gold, or horses as a form of mutual settlements, it will not change anything for the world dollar economy - BRICS countries will still have to buy from the external economy for dollars The BRICS yuan is of no use to anyone outside the BRICS. By the way it turns out India among others

[slapper]

....
I would say whenever you try to attack others because you think they are much worse than your nation, you should remember the nation where people die because they can't afford healthcare. You can work for 60 years, invest and save carefully and then if you get cancer, not only you die of course but also everyone around you lost all those savings as well. All of your money is gone along with your life. Care to imagine which nation that is?

I think you probably know which one that is. This is why we should not just bash those nations, I agree that those are bad, but Dollar is not strong anymore, it is getting less and less valuable and eventually not many people will use it. I am not saying it will not be top ranked, it can stay top ranked, just not be 90% of our reserves anymore.

Since English is not my native language, maybe I didn't understand something, please clarify - about "I would say whenever you try to attack" - did you mean me ?  Am I attacking someone? Perhaps I am accusing someone of something?  And who do I consider worse than my nation? Please clarify, because it sounds rather strange or unclear, as far as I am concerned

And about the dollar. You know, just because the dollar has given up a little bit, it doesn't mean that others have taken its position. The problem is that you probably measure everything within the framework of the idea of "dedollarization". But the dollar, and all other currencies after the covid and political-economic cataclysms of 2022-2023, have been hit hard, and you can't name a single SIGNIFICANT currency that has only been getting stronger in recent years.

Well, de-dollarization itself is quite a new bubble that China and a couple other countries are trying to inflate first of all, but not for your salvation, but only for their own. Even if BRICS switch to kauri, gold, or horses as a form of mutual settlements, it will not change anything for the world dollar economy - BRICS countries will still have to buy from the external economy for dollars The BRICS yuan is of no use to anyone outside the BRICS. By the way it turns out India among others

Indeed, the dollar has fluctuated, but other currencies haven't magically risen to take its place. The term "de-dollarization" has become a buzzword

As a universal measuring stick, dollar value changes cause ripples. Does that mean global economics will stop? Not exactly. As you noted, the dollar's importance in global transactions persists even if BRICS states use unusual trade methods. While intriguing, the BRICS yuan has little appeal outside its own consortium. India's place? Another layer of complexity in this mess. The world of money is constantly changing, therefore it's crucial to keep a close eye on these changes

[RamBahadur.Gurung]

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

[DrBeer]

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

As history has shown, gold cannot be used as a currency. The value of a currency - money - is in the speed of its movement. I signed the transaction and received the money in minutes. Rhetorical question - how to pay with gold?
Exchange obligations in gold? Voros - how can you be sure that I have in my reserves the 100,500 tons of gold I indicated? Those. a debt obligation in gold is a dummy. However, just like the gold and foreign exchange reserves of countries, there is a nominal indicator, but no one ever allows auditors. The question is why?

[jossiel]

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

While that's true.

It's because the world has been used to that standard and gold has been the basis for having a reserve which is done by most countries. But if one country starts to change that just as what we're seeing with these alliances like BRICS trying to bring down the US and EU.

These global reserves could change but yeah, looking bitcoin at the spot is going to take time.

[CageMabok]

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

Of all the metals you mentioned, gold can still be relied on as a store of value because gold's liquidity is very different from other metals such as silver and platinum. However, in terms of cryptocurrencies, I see that they are very suitable to rely on to increase profits through investment and trading because everyone can buy them to expect profits within a certain time period even though the level of risk is also very large. But in terms of compatibility, cryptocurrencies are more in this direction because they only store value in stablecoins and also in physical or non-physical gold.

[posi]

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

As history has shown, gold cannot be used as a currency. The value of a currency - money - is in the speed of its movement. I signed the transaction and received the money in minutes. Rhetorical question - how to pay with gold?
Exchange obligations in gold? Voros - how can you be sure that I have in my reserves the 100,500 tons of gold I indicated? Those. a debt obligation in gold is a dummy. However, just like the gold and foreign exchange reserves of countries, there is a nominal indicator, but no one ever allows auditors. The question is why?

If I'm not mistaken, gold was used as currency in feudal China. According to historical films produced by China, the people of this country at that time used silver and gold as currency in exchanging goods. But it must also be admitted that using gold as currency will create more disadvantages than the benefits it brings. But no matter what developments or major changes the world has, gold is always a valuable asset and receives the most attention. No other property can surpass it and that has been proven for over a thousand years.

[jaberwock]

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

As history has shown, gold cannot be used as a currency. The value of a currency - money - is in the speed of its movement. I signed the transaction and received the money in minutes. Rhetorical question - how to pay with gold?
Exchange obligations in gold? Voros - how can you be sure that I have in my reserves the 100,500 tons of gold I indicated? Those. a debt obligation in gold is a dummy. However, just like the gold and foreign exchange reserves of countries, there is a nominal indicator, but no one ever allows auditors. The question is why?

Gold definitely can't be used as a currency, not right now anyway and we are not gold backed fiats anywhere in the world as far as I know which all combine makes it impossible for gold to be used.

But, fiat loses its value due to inflation as well, and this isn't like a single fiat, every single fiat loses its value, some more than others but they all do. That means we need something that can store value as good as gold, but can be easily spent as easy as fiat, what do we have like that? Hmm... Bitcoin? I think so, I believe that I can easily invest into bitcoin, anytime I can spend it then I can, we do need more adoption and more places that accepts it, but all in all I can say that it is the ideal asset right now.

[Unbunplease]

Gold definitely can't be used as a currency, not right now anyway and we are not gold backed fiats anywhere in the world as far as I know which all combine makes it impossible for gold to be used.

But, fiat loses its value due to inflation as well, and this isn't like a single fiat, every single fiat loses its value, some more than others but they all do. That means we need something that can store value as good as gold, but can be easily spent as easy as fiat, what do we have like that? Hmm... Bitcoin? I think so, I believe that I can easily invest into bitcoin, anytime I can spend it then I can, we do need more adoption and more places that accepts it, but all in all I can say that it is the ideal asset right now.

Gold can be described as an interstate store of value that is not subject to significant price fluctuations like bitcoin. Yes, bitcoin is more liquid, but gold is more secure and does not need the internet to use it. And gold is more anonymous. Bitcoin's strength and weakness at the same time is the blockchain

[redsun114]

Theoretically crypto currencies would be the perfect currency to be the next global reserve currency. No country alone would have full control over it and the decentralization aspect would remove a lot of political pressure. Unfortunately we are not living in a perfect world and I don't see any chance at the moment for cryptos to become the new global reserve currency.

For us, obviously yes but for them? No way. Being decentralized is actually the thing that they hate the most. How can they do their manipulations this time? There are now global reserves that they primarily used. I am fine with that already and cryptos being legalized by them is already a big thing for me. Maybe it is more possible for them to make it as a legal tender than making it as a global reserve, but that is even better. What more can we ask for?

There might be support from smaller countries that don't see a chance for their local currencies to have any impact, or that is fluctuating too much and scares investors away due to the high volatility.

But don't forget that cryptocurrencies are also high in volatility, although it's much better because their supply is only limited and there is always a chance for their value to recover than some local currencies out there.

[slapper]

At this point, only gold has the capability to be used as the reserve currency of the world. Bitcoin and some of the other cryptocurrencies may rise to that role in the future, but right now they are noway near that. Then there are other bullion currencies such as Silver and Platinum. But the issue with these metals is that they don't have enough liquidity to become store of value.

As history has shown, gold cannot be used as a currency. The value of a currency - money - is in the speed of its movement. I signed the transaction and received the money in minutes. Rhetorical question - how to pay with gold?
Exchange obligations in gold? Voros - how can you be sure that I have in my reserves the 100,500 tons of gold I indicated? Those. a debt obligation in gold is a dummy. However, just like the gold and foreign exchange reserves of countries, there is a nominal indicator, but no one ever allows auditors. The question is why?

Gold definitely can't be used as a currency, not right now anyway and we are not gold backed fiats anywhere in the world as far as I know which all combine makes it impossible for gold to be used.

But, fiat loses its value due to inflation as well, and this isn't like a single fiat, every single fiat loses its value, some more than others but they all do. That means we need something that can store value as good as gold, but can be easily spent as easy as fiat, what do we have like that? Hmm... Bitcoin? I think so, I believe that I can easily invest into bitcoin, anytime I can spend it then I can, we do need more adoption and more places that accepts it, but all in all I can say that it is the ideal asset right now.

Gold, the timeless symbol of wealth. But as a day-to-day currency? Nah, not happening. There's no gold-backed fiat out there. It's all about trust. Trust in the system, trust in institutions, trust in... well, trust

Inflation, the ever-looming shadow. Each and every currency, and I do mean EVERY fiat, loses value. It must happen. It's in the beast's nature. What then is the solution? What combines the security of gold with the practicality of fiat? Bingo: Bitcoin. Bitcoin is a revolution, not just a digital currency. The time has come. It's revolutionary. But, and this is a big but, we need to increase adoption. There are more outlets for it, more establishments that accept it, and more people who believe in it. Bitcoin may very well become the next big thing once that occurs. Let's embrace the future and write the book on finance

[bayu7adi]

I hold the belief that keeping assets in the form of USDT or stablecoins while they remain under the control of centralized institutions is not a favorable choice. Their value will continue to track FIAT, and if the USD experiences inflation, it won't have a positive impact on the crypto USDT portfolio. It's a different case with centralized coins like XRP, which may offer better opportunities than USDT, though I trust you understand the associated risks.

To diversify in the realm of crypto, I will steadfastly embrace its inherently fluctuating nature, whether it be small or significant. I will continue to make choices using a more thorough fundamental analysis. This implies that, in my view, USDT is not a suitable place for long-term asset storage; it's better to have faith in USD if there are no other options.

[YUriy1991]

Inflation, the ever-looming shadow. Each and every currency, and I do mean EVERY fiat, loses value. It must happen. It's in the beast's nature. What then is the solution? What combines the security of gold with the practicality of fiat?

That's right, the inflation can come at any time however and fiat also has the potential to lose value where more money can be printed, with Bitcoin, there is a hard cap. There are people who manage to live on Bitcoin.

Bingo: Bitcoin. Bitcoin is a revolution, not just a digital currency. The time has come. It's revolutionary. But, and this is a big but, we need to increase adoption. There are more outlets for it, more establishments that accept it, and more people who believe in it. Bitcoin may very well become the next big thing once that occurs. Let's embrace the future and write the book on finance

Bitcoin is a giant payment system, everyone in the network has an entry point or account. Even though it still takes time and is still considered new, I think we will get to that point (Full adoption) As long as Bitcoin is allowed everywhere in the world.