Diversification in Global reserves.

[Bitco55]

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? 

[1714973303]

1714973303

[1714973303]

1714973303

[1714973303]

1714973303

[1714973303]

1714973303

[Zaguru12]

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?

The Answer would actually be No if actually the global reserve holds only dollars, but I can tell you that most of these nations do not have there reserves only in the dollar currency even the US who owns the dollar diversified them into gold and other precious metals but with Gold been the highest hold, so if it is so for every reserve then the hit wouldn’t be felt that much.

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

I wouldn’t say we the word cryptocurrency because I don’t want to generalize because I think aside bitcoin no other coin is worth of been used for investment purposes talk more of been a reserve. Bitcoin could have been a perfect answer with the way that it doesn’t have any backing of a countries currency and it is universal. But a reserve is is something that you can easily use in exchange during international trading with bitcoin volatilities and probably like of manipulation many of these countries wouldn’t want to accept it. And a country holding junk of it in reserve might have to find another commodity or currency to be use for trading everytime just to beat the volatility of the bitcoin.

A bit off point I would say if it is an individual looking for long term investment then bitcoin is the perfect solution for that

[DVlog]

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?

You need to understand why do we need to keep a global reserve and why it's important.

A country keeps its reserves to do cross border transactions. If india wants to trade with china then they will do that with global reserve. They will not use their native currency if there isn't any agreement between those two nations because it is not widely acceptable. If india accepts Chinese native currencies they will not be able to use that to trade with other country. They don't keep their global reserve as savings. This money keeps circulating and that is why we saw some countries losing their reserves when other gaining it. If inflation getting higher they will still keep USD as their global reserve due to its acceptance. Some countries wanted to change that but USD dominance is still very strong.
 

[khiholangkang]

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 opinion, it would be very difficult to consider crypto currency as a global reserve asset, with its high fluctuation nature, this will make the stabilization of the value of the asset uncontrollable, secondly, crypto has a cycle and is quite serious with global economic sentiment which can influence it.

It is possible to diversify it at a certain time, such as the preparation of the bitcoin bull market, countries that do this will definitely get more value and help the growth of the value of their money with bitcoin, the only problem is that they have to wait to get it, while it can be used as an asset whose activity is quite fast in global transactions, such as paying debt or whatever it will be very difficult for that. And unless they do it quickly to transact to avoid a decrease in value.

[slapper]

I see the decline of the US dollar. It is indeed harmful. Numbers don't lie. Both the inflation and the decline in the world's reserve share are clearly visible. You're also correct regarding the diversification. With the situation, it makes sense to take this action. GOLD. Always a wise decision. Its consistency defies comparison

I understand that, considering its decentralised structure, it can be alluring to view cryptocurrency as a worldwide reserve. It's true that there are centralised coins that may be controlled. Still, there are problems. Not only am I concerned about the volatility, but others are as well. It's about stability, not just about having value. What other coin might be as reliable as bitcoin? Even with their dollar peg, cryptocurrencies like USDC and USDT are susceptible to market volatility and regulations. Therefore, the only choice available to combat the inflation of fiat money is Bitcoin. Other options? For brave investors only

[crwth]

With all around the world leading the changes being a millennial and some people wanting crypto, it wouldn't be surprising that Bitcoin would be able to keep up with Gold. It's all about the demand and how much it could bring to the economy and become the leading asset for people, then it would probably continue to increase in price as well.

[Doan9269]

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

There's indeed going to be diversification in global reserved asset with bitcoin in cryptocurrency, the only difference is that the people cannot compare this with the ones happening with centralized institutions and government whereby they made use of the physical asset and natural resources, bitcoin in cryptocurrency is fast gaining more attention in these global economy and served as a reserve digital currency and global asset individual persons can invest on, hold and have a secured future through it investment and their financial economy will have a total turnaround, what the people have is bitcoin while the government is gold, fiat and other physical investment assets.

[komisariatku]

I didn't know that the dollar had lost its value by 98%. But if I'm not mistaken the pound has lost a lot of its value against the US dollar, in 1940 the pound had an exchange rate of $3 against the US dollar, and now it only has a third of that value.

I do not agree if bitcoin is made a state reserve because its circulation in the public will be greatly reduced and the vision of bitcoin as a currency will be increasingly difficult to realize. I would prefer if bitcoin was used as an alternative currency for cross-border transactions.

[Unbunplease]

Proper diversification of the world's reserves is very important for the successful work of any state. Keeping everything in one basket is, as practice shows, a wrong decision. But it is also impossible to bet only on bitcoin because of sharp fluctuations in its price. Gold, silver and other similar assets change in price not so often

[hugeblack]

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?

I do not think this information is accurate. The dollar has decreased in the share of global reserves for several reasons that may not be related to inflation, including China selling a lot of US treasury bonds to strengthen its currencies, or the movements of the Japanese Central Bank, or more countries diversifying their investment portfolio, or deals selling oil for non-dollar terms and their impact. On the price and many reasons that may not be directly related to inflation.

The dollar's status as a global reserve currency will not change unless a world war or major changes occur, which will not happen in the next few years.

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

cryptocurrency No, Bitcoin for now No, but there is a good chance that Bitcoin will be a currency for international trade in the future.

[kryptqnick]

The US inflation has been pretty stable at a fairly low rate, something policymakers consider acceptable. And the global reserves decline isn't really showing any kind of trend, as the USD is still at the top without any close contenders, and it's been fluctuating somewhat over the years while keeping this generally strong dominance.
I think using some BTC as a reserve can be a good thing, but it's also a matter of whether other countries will be willing to trade in it internationally (and with the negative IMF's position it's unlikely) it can kind of become dead weight. Foreign reserves need to be currencies that other countries are very willing to use for international trade, loans, and other similar things. I don't think Bitcoin has reached that level of acceptance yet.

[GbitG]

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? 

The answer to your query lies in your position itself, like the title says, Diversification in Global Reserves. Because nations have been so reliant on US dollars since 1971 and continue to be so. Even many developing countries took huge loans with huge interest in US dollars from the IMF. By doing that, they have no choice other than to follow them or do whatever the IMF asks them to do.

Therefore, people, nations, and governments are looking for other assets that can be used for reserves because gold is obviously the number one thing, but many countries lack it while the US doesn't.

Even though there is a huge tax on taking gold from one place to another, sometimes they don't even let anyone take gold from one place to another. The transportation of gold is very difficult. But in comparison to that, BTC can easily be transacted, and it has the factor of scarcity, while gold doesn't have that. And with BTC, there are other 20k tokens and coins. Which also diversified the portfolio and provided people with better options instead of just relying on the US dollar.

[coupable]

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

While Bitcoin may be the best answer to your question, countries that intend to diversify their reserves will mainly consider assets that they can fully control and monitor. In the European example, the best solution to reduce dependence on the dollar is to strengthen the position of the euro and encourage everyone to use it instead of the dollar. At the same time, this is not an easy step, given that the dollar is the approved currency in international exchanges, and it will not be easy to delink from the dollar, especially since Europe is in an economic and strategic alliance with the United States, and this will have serious consequences on several aspects.

[Faisal2202]

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

I would not say cryptocurrency because in cryptocurrency there come ALTs and BTC and I can not vouch for the ALTs as investments for diversification at the global reserve level. Because there are alts that are just shit tokens and don't really solve anything then there are no means to hold them and some are totally built up on manipulation (doge-like). Some are centralized but some are decentralized too but still, they lack the scarcity and security issues.

The solution to all is BTC, we can use BTC for diversification purposes, So yeah BTC does stand a chance in share of the global reserves.

BTC cannot be manipulated at a level at which USD can be manipulated and besides that after reading some replies, some members were saying BTC is better but USD is still in the hype and was comparing ((kryptqnick) BTC with USD. For those I have only one question, which is:

Which pair with BTC has the most trades till now?

The answer is USDT which has crossed 1 billion USDT and tell me USDT is pegged with? it is pegged with the US dollar, which means indirectly BTC is also promoting the US dollar and they are printing a hell lot of dollars.

Point is, People are looking to diversify their funds, but they don't know they are also depending on US dollars to some extent but they can avoid it, by trading in some other pair of course.

[Upgrade00]

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?

For one, it has not been a case of steady decline, there has been some points in the past 50 years where the value of the USD has increased but it has mostly suffered from inflation over the years but still a bit of a way to go to bring worth zero.
Those researves are also not solely held in USD there are several precious stones and other assets Wich make it up.

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

Asbabgolbak reserve currency, it's a long short. It is possible that Bitcoin gets used experimentally by one of two countries but we are a very long way from a full scale global adoption as a reserve currency if ever.

[Fortify]

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?  

Global reserves and the makeup that different countries are comfortable with holding are changing all of that time. If your currency enters the favored basket of currencies, it generally means it's more trusted which usually stems from level headed governance that are not prone to shock decisions. Take China for example, it is stuck in a bit of a paradox - it wishes it's currency was in higher demand, but is also battling not to have it freely floated because it would take away some financial maneuvering by the Chinese central bank. If their currency raises too much, it's exports become too expensive and then other countries start looking elsewhere for products, but if its too low then it is expensive for them to import from other countries. The erratic nature of the Chinese government also makes other countries uncomfortable with holding too much of their currency.

[STT]

Its already true to some extent crypto is held as some store of currency but in reserve terms only 1 or 2 central banks maybe have crypto.   The most famous is El Salvador, maybe if they are successful in their policy it will be there after a dozen or more and we can see it develop into something.  At present the value held is by the people, mostly those who wish to have some reference to global currency which they lack in their national currency.  

[Fiatless]

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.

There are just a few nations that have decided to de-dollarize trade their partnership.  Prominent among them is Russia, India,  China, and Dubai. However, some of these nations also have business partnerships with other nations that mandate them to use the US dollars. So these nations have not successfully diversified their trade currency due to the widespread use of the dollar.

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.

The French President just made a political statement which has not been backed with action. France's international trade payment is still heavily dependent on the dollar.

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?

The world needs an alternative currency to compete with the dollar because it has become a tool for economic manipulation and dominance. Poor nations have to spend so much money sourcing dollars to engage in trade. The US and its allies are now using the dollars to punish other nations through sanctions. I don't know much about using gold as an alternative currency but decentralized money like bitcoin will be ideal. We don't need a currency that can be manipulated by any or a few countries. The only challenge bitcoin will pose is its volatility.
 

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?  

If the price of bitcoin becomes relatively stable it will be a good alternative to diversify assets. But this will be possible if some powerful nations agree to use bitcoin as their reserve currency. I also thought that instead of the BRICS nation coming up with a new currency, they should have used something decentralized.

[Darker45]

First off, it's not just the US dollar that has lost much of its value over the years and decades. All fiat currencies have experienced that without exception. As a matter of fact, here in my country the prices of certain goods and services have already doubled, or even more, just in the past decade or two. That must be a lot worse. And my country's fiat is not even the worst performer in the world.

Let's forget about the gold option today. There are so many reasons gold would fail. In the first place, are we to transact with real gold? No. So what are we going to use? Paper certificates backed by gold? Can we verify the gold reserves which back them? Do we have an assurance that the gold in reserve is in equal amount to that of the credits issued? Would the certificates not be repeatedly used as a collateral?

The features of Bitcoin make it a very good option as a global reserve.

[Ayers]

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

I don't think the cryptocurrency industry will have a chance of becoming a global reserve asset like gold, as they have no intrinsic value other than being used for speculation, the value of altcoins is purely hype and speculation. But if we just consider bitcoin, it's possible because bitcoin actually provides us with useful utilities and its value is being shaped by real demand. That is shown by the fact that it is becoming more and more popular as organizations and countries gradually want to own it.

Whether Bitcoin can become a world currency is still a difficult question to answer. But for it to become an asset as valuable as gold, we have almost achieved it. I believe that in the future when the economy becomes increasingly unstable, bitcoin will be the asset of top concern next to gold.