US Dollar vs Bitcoin

[pooya87]

I mean, if the US had its own Gold reserves in the past, why can't it have its own BTC reserves now? After all, BTC is touted as the next "digital Gold". With how fast the USD is declining (even though it's still the world's reserve currency), I'm pretty sure BTC will reign supreme in the future. It will probably outlive most Fiat currencies we know and love today. We'll see what happens in the long run.

And they'll lie about their bitcoin reserve amounts just like they lied about their gold reserves that led to Bretton Woods system falling apart and dollar tanking until they introduced a new scam replacement called Petrodollar

[Minor Miner]

After the Fed's statement that they are not interested in bitcoin, I am waiting to see what happens next and what Trump will do to make the idea of ​​bitcoin as a national reserve a reality. Because the Fed is the only authority that has the authority to manage the USD and they are the custodian of the US national reserves, not the White House. And the Fed is a separate organization, not subject to the management or control of the White House. In other words, Trump cannot interfere with the Fed's decisions.

Also, the US is the country that proposed to abolish the gold standard so they can freely print USD at will, I don't think they will use Bitcoin to back USD instead of gold.

True. But what if Trump's Republican Party control both chambers of Congress (majority in House + Senate)? Then, the FED will be subject to the Party's demands. For what I know, most Republicans are loyal to Donald Trump. So if he says the US will have a BTC reserve, congressmen will approve any necessary bills to make it happen. And there's nothing the FED can do about it.

I mean, if the US had its own Gold reserves in the past, why can't it have its own BTC reserves now? After all, BTC is touted as the next "digital Gold". With how fast the USD is declining (even though it's still the world's reserve currency), I'm pretty sure BTC will reign supreme in the future. It will probably outlive most Fiat currencies we know and love today. We'll see what happens in the long run.

Republicans are almost certain to control both the Senate and the House this term, but that doesn't mean they have complete control of Congress. Any bill or decree would need to be passed by vote and members of the Democratic Party would also be involved.
I agree, the Trump administration has many crypto supporters but not all, and national reserves are a big deal, it's much bigger than enacting crypto friendly policies. Everything needs to be considered and evaluated very carefully, it cannot be easily passed just because it is the president's idea.

The Fed's view on bitcoin is not wrong because they have a duty to protect and maintain the strength of the USD as well as ensure stability for the world economy. Bitcoin's volatility is clearly not suitable and it would be a huge challenge for them to adopt it.


Honestly, I am not against Trump's idea of ​​making Bitcoin a national reserve because it will cause the price of Bitcoin to skyrocket and I am also a beneficiary as a Bitcoin investor. But if we evaluate the reality, this idea is not easy to implement.


Also, Trump has said that he wants the president to have the power to intervene in Fed decisions, he wants to change that and I'm also very interested to see if he can do that in this term. Amending the United States Constitution is not an easy task and can be fraught with danger. Throughout the 47 US presidents, there have been many presidential assassinations and many conspiracy theories that they were assassinated for trying to change the US constitution.

[Abiky]

I am interested in the position of Trump, who is about to take office. This is the man who has already devoted a lot to showing the public that the crypto community is not an accessible and profitable market that is developing Bitcoin and blockchain. And at the same time, Trump has a clear focus on making the dollar great again. This follows from his statements towards BRICS, which decided to make an alternative to the dollar. This is a rather controversial opinion, because Bitcoin and the dollar are also constantly in a struggle.

The only way to make the US Dollar "great again" would be to pay off the National debt. Or at least back the currency with Bitcoin. Maybe Elon Musk's D.O.G.E. (Department of Government Efficiency) can help with this? If Trump manages to restore the American economy, Republicans would be on a road towards winning back the White House in 2028 (and also both chambers of Congress). Not only a healthy USD helps the United States, but it will also benefit the world.

With a strong USD, BRICS will have no reason to exist. The alliance will fall quickly. I don't think Trump's proposal of 100% tariffs on countries avoiding the USD will work, though. It will only backfire (weaponizing the USD). Bitcoin will survive irregardless of what happens to the US Dollar. At least, that's the way Satoshi designed it. Otherwise, what will be the difference between traditional Fiat currencies and Bitcoin? Just my two sats.

[lixer]

How will Bitcoin help strengthen the value of the USD when they have no intention of pegging it to the USD? If they were interested in devaluing the USD, they would not have abandoned the gold standard and printed USD so indiscriminately. So turning bitcoin into a reserve would be irrelevant and would not help strengthen the value of the USD.

Many people have commented about this, but I don't see anything like Bitcoin strengthening the value of the USD. As you said, if the USD were devalued, I would have expected something like this, but the USD is not being devalued; it is being traded very well, no matter how well BTC does, the value of the USD will not decrease or increase.

Whether Donald Trump of the United States wants to do it or not, he will not do anything with Bitcoin to strengthen or increase the value of the USD. ‌Bitcoin will be used as a digital currency, its popularity will increase, and it will do something good, but it does not seem that the use of the USD in the United States will move in any direction. It seems that the USD will be traded in the generally practised way. The issues you have raised are right; I think the same. Many people have made many comments, but I think that no matter how much we comment, nothing will happen about this, it will continue as it is.

Donald Trump's win bring positive changes around US administration because now we have few talks openly coming and peoples are freely their suggestions how things could be controlled and how we will be able to use this bitcoin and cryptocurrency for the strength of USD which is most chances not easy but if we have something solid policy and strategy from them surely things could be work, and we will be having USD more strength which could be good for the country.

Here I also agreed we will be having now bitcoin more stable and popular, and it's going to be entered in new era where we will be having it's better use as digital currency which will help to increase his value which will surely increase some stability which was not possible sometime back due laws or regulations which were coming for controlling this.

[Kavelj22]

Here I also agreed we will be having now bitcoin more stable and popular, and it's going to be entered in new era where we will be having it's better use as digital currency which will help to increase his value which will surely increase some stability which was not possible sometime back due laws or regulations which were coming for controlling this.

Since the last ATH rally in 2021, the same period in the following years has seen the bitcoin price decline significantly and quickly, only to rebound in the first quarter of the new year, which this year will coincide with some major events.

“People are looking to increase their Bitcoin holdings, not decrease them,” said the director of the American Blockchain Association. “It must be a change at the VIP level and having a president who says, ‘We want the United States to be the capital of this sector, we want to work for you,’ that will make a huge difference.”

She says this because people are waiting for Trump to arrive in the White House, who is the most influential figure in the crypto space since he started his election campaign, in which he made reassuring promises to the crypto community, and then to include Elon Musk in his administration.

[FanEagle]

Donald Trump's win bring positive changes around US administration because now we have few talks openly coming and peoples are freely their suggestions how things could be controlled and how we will be able to use this bitcoin and cryptocurrency for the strength of USD which is most chances not easy but if we have something solid policy and strategy from them surely things could be work, and we will be having USD more strength which could be good for the country.

Here I also agreed we will be having now bitcoin more stable and popular, and it's going to be entered in new era where we will be having it's better use as digital currency which will help to increase his value which will surely increase some stability which was not possible sometime back due laws or regulations which were coming for controlling this.

USD getting stronger is a very difficult job and I am not entirely sure if that will happen or not. We are talking about a potential where they could increase the tariffs to a huge level, and he is pretty aggressive towards other nations as well.

This could result very well with USD growing weaker. Don't get me wrong, I am not saying other nations wouldn't be hurt neither, but bitcoin wouldn't be. Meaning that, he would hurt USD and other fiat currencies, while helping out bitcoin because of his bad economic moves. I get that it may not be all that awesome for most people to hear this, because they love Trump and they think he will make USD stronger, but the reality is that he didn't do that on his first four years, so there is really no proof that he will aim to do that on this four years.

[WillyAp]

And they'll like about their bitcoin reserve amounts just like they lied about their gold reserves that led to Bretton Woods system falling apart and dollar tanking until they introduced a new scam replacement called Petrodollar

Any source about that lie?
I mean hearsay is not enough in that case.

[Abiky]

USD getting stronger is a very difficult job and I am not entirely sure if that will happen or not. We are talking about a potential where they could increase the tariffs to a huge level, and he is pretty aggressive towards other nations as well.

This could result very well with USD growing weaker. Don't get me wrong, I am not saying other nations wouldn't be hurt neither, but bitcoin wouldn't be. Meaning that, he would hurt USD and other fiat currencies, while helping out bitcoin because of his bad economic moves. I get that it may not be all that awesome for most people to hear this, because they love Trump and they think he will make USD stronger, but the reality is that he didn't do that on his first four years, so there is really no proof that he will aim to do that on this four years.

The only way the USD will weaken itself is if countries start abandoning it in favor of other currencies. Trump's proposed tariffs, will accelerate the USD's decline. America must work together with other countries for a better future. If it becomes selfish, BRICS will "eat its cake". As simple as that.

It might be Bitcoin the one that will become the world's next reserve currency. Assuming governments around the world allow it. Even if BTC remains a "second choice", that doesn't mean it's the end of the world. It will prove to be an alternative for those seeking privacy (sort of) and freedom. Fiat will continue to depreciate as central banks increase the money supply (inflation). Just "hodl" both BTC and Gold for complete peace of mind. US' hegemony can't last forever.

[CryptoBuds]

USD getting stronger is a very difficult job and I am not entirely sure if that will happen or not. We are talking about a potential where they could increase the tariffs to a huge level, and he is pretty aggressive towards other nations as well.

This could result very well with USD growing weaker. Don't get me wrong, I am not saying other nations wouldn't be hurt neither, but bitcoin wouldn't be. Meaning that, he would hurt USD and other fiat currencies, while helping out bitcoin because of his bad economic moves. I get that it may not be all that awesome for most people to hear this, because they love Trump and they think he will make USD stronger, but the reality is that he didn't do that on his first four years, so there is really no proof that he will aim to do that on this four years.

When it comes to the strength of the US dollar, most economists compare the purchasing power of the currency with other currencies, comparing the strength of the US economy with the economies of other countries. No one compares the strength of the USD to inflation-hedge assets like gold or bitcoin. The nature of fiat is to create inflation, while assets with a finite supply like gold or bitcoin are used to hedge against inflation. How can a currency that is printed indiscriminately become stronger than an asset with a finite supply?

The US dollar still dominates the world but is gradually weakening because of the BRICS de-dollarization idea, and what Trump wants is to destroy those ideas so that it does not become a reality.

[Abiky]

When it comes to the strength of the US dollar, most economists compare the purchasing power of the currency with other currencies, comparing the strength of the US economy with the economies of other countries. No one compares the strength of the USD to inflation-hedge assets like gold or bitcoin. The nature of fiat is to create inflation, while assets with a finite supply like gold or bitcoin are used to hedge against inflation. How can a currency that is printed indiscriminately become stronger than an asset with a finite supply?

The US dollar still dominates the world but is gradually weakening because of the BRICS de-dollarization idea, and what Trump wants is to destroy those ideas so that it does not become a reality.

That happens because the USD is the world's reserve currency. It's used as the standard unit of account for measuring the cost of goods/services worldwide. Anything affecting the value of the USD, will affect other countries' currencies as well. Trump wants to avoid "de-dollarization" by imposing huge tarrifs. But I'm afraid it will backfire, as such measures will force other countries to look for alternatives.

BRICS might as well create a new currency backed by Gold, Oil, or Bitcoin. Then it will be able to perform international trades without the need for the USD. It's that simple. We all know how sanctions played out against Russia. They ultimately backfired, as Russia found ways to keep the economy flowing by trading with its allies (China, India, Iran, etc). I sure hope BTC renders all other Fiat currencies obsolete, so the world can truly be fixed. The question is: Will it happen? Or will it only be a long and distant dream?

[tygeade]

If the whole bitcoin reserve thing happens then we could make it grow even further, we could see both bitcoin grow a lot more and that's great, but at the same time dollar would gain a lot of value because of this as well, it's really a great deal and we could make this get to a better level.

I think it has to be something more practical, because reserve is a key point in this further development, and getting that accepted and doing it is not easy. Remember, USA has 30+ trillion debt, so it is not really that clear we could have something easy here by trying to get a reserve, but it is also not that impossible neither and could be done if we are careful. Obviously it is going to take some time, but we are hopeful, at least I am.

[Abiky]

If the whole bitcoin reserve thing happens then we could make it grow even further, we could see both bitcoin grow a lot more and that's great, but at the same time dollar would gain a lot of value because of this as well, it's really a great deal and we could make this get to a better level.

I think it has to be something more practical, because reserve is a key point in this further development, and getting that accepted and doing it is not easy. Remember, USA has 30+ trillion debt, so it is not really that clear we could have something easy here by trying to get a reserve, but it is also not that impossible neither and could be done if we are careful. Obviously it is going to take some time, but we are hopeful, at least I am.

Everyone is betting on a US Bitcoin Reserve for higher prices in the long term. If BTC is the next "digital Gold", this is the way to go. I mean, the US does have Gold in its reserves. Same as other countries. Why can't it add BTC to its portfolio too? If it doesn't happen during Trump's second-term, it means the government is still skeptical of Bitcoin.

The US must embrace the revolution if it wants to strengthen the USD. Otherwise, countries like Russia and China will "eat its cake". Trump wouldn't want that to happen. Would he?

[Minor Miner]

If the whole bitcoin reserve thing happens then we could make it grow even further, we could see both bitcoin grow a lot more and that's great, but at the same time dollar would gain a lot of value because of this as well, it's really a great deal and we could make this get to a better level.

I think it has to be something more practical, because reserve is a key point in this further development, and getting that accepted and doing it is not easy. Remember, USA has 30+ trillion debt, so it is not really that clear we could have something easy here by trying to get a reserve, but it is also not that impossible neither and could be done if we are careful. Obviously it is going to take some time, but we are hopeful, at least I am.

Everyone is betting on a US Bitcoin Reserve for higher prices in the long term. If BTC is the next "digital Gold", this is the way to go. I mean, the US does have Gold in its reserves. Same as other countries. Why can't it add BTC to its portfolio too? If it doesn't happen during Trump's second-term, it means the government is still skeptical of Bitcoin.

Because bitcoin is not like gold, it is too new, small and volatile to be considered and used as a national reserve asset. I don't know how Trump will make bitcoin a national reserve but the Fed has rejected that idea and that shows they don't trust bitcoin.

The US must embrace the revolution if it wants to strengthen the USD. Otherwise, countries like Russia and China will "eat its cake". Trump wouldn't want that to happen. Would he?

Honestly, how will bitcoin strengthen the position and power of the USD? If Bitcoin becomes a national reserve, how will it affect the US economy and the power of the USD?

How can a volatile asset, prone to dumping at any time and with a market capitalization of less than $2 trillion help an economy with a GDP of $28 trillion become stronger?

[Abiky]

Honestly, how will bitcoin strengthen the position and power of the USD? If Bitcoin becomes a national reserve, how will it affect the US economy and the power of the USD?

How can a volatile asset, prone to dumping at any time and with a market capitalization of less than $2 trillion help an economy with a GDP of $28 trillion become stronger?

"Volatile asset"? Sounds like you don't believe in Bitcoin. The only reason why Bitcoin is "volatile" is because people measure its value against Fiat. Once the world adapts to the "Bitcoin Standard", the prices of goods and/or services will be measured in satoshis (sats). Not USD or any other Fiat currency. Wasn't that Satoshi's dream?

Anyways, Bitcoin helps strengthen the USD because of its store of value properties (deflation). Just like how Gold helped keep the US economy afloat. Remember when the USD was backed by Gold? It should only be a matter of time before the US gets its own BTC reserve. Afterwards, the government can decide to back the USD with BTC. Just "hodl" on tight as this is going to be a wild ride.

[pooya87]

Anyways, Bitcoin helps strengthen the USD because of its store of value properties (deflation). Just like how Gold helped keep the US economy afloat. Remember when the USD was backed by Gold? It should only be a matter of time before the US gets its own BTC reserve. Afterwards, the government can decide to back the USD with BTC. Just "hodl" on tight as this is going to be a wild ride.

That was a short lived period where USD was backed by gold. Very quickly the US regime realized they can't continue that and still spend trillions (better say waste). That was decades ago.

Today, the amount of dollar US prints is so much so that nothing can back it unless its value is significantly lowered (like 95% crash). And it is so bad that even bitcoin can not be used to back it. Not to mention that they can not claim dollar is backed by anything and still continue printing a trillion dollar every 100 days...

[fruktik]

The only way the USD will weaken itself is if countries start abandoning it in favor of other currencies. Trump's proposed tariffs, will accelerate the USD's decline. America must work together with other countries for a better future. If it becomes selfish, BRICS will "eat its cake". As simple as that.

It might be Bitcoin the one that will become the world's next reserve currency. Assuming governments around the world allow it. Even if BTC remains a "second choice", that doesn't mean it's the end of the world. It will prove to be an alternative for those seeking privacy (sort of) and freedom. Fiat will continue to depreciate as central banks increase the money supply (inflation). Just "hodl" both BTC and Gold for complete peace of mind. US' hegemony can't last forever.

BRICS? Are you serious? This association of countries is barely breathing. Well, sometimes the participants get together and what does it give? No important decisions or actions. So, they eat and chat about various topics, and then what? All this seems so pathetic that it causes nothing but laughter. No, time has passed and it is too late to try to resist stronger players on the world stage. It seems to me that just a little more and it will all fall apart in an instant. No, this is not the level to pretend to be something. The GPP of the participating countries is incredibly small.

[Minor Miner]

Honestly, how will bitcoin strengthen the position and power of the USD? If Bitcoin becomes a national reserve, how will it affect the US economy and the power of the USD?

How can a volatile asset, prone to dumping at any time and with a market capitalization of less than $2 trillion help an economy with a GDP of $28 trillion become stronger?

"Volatile asset"? Sounds like you don't believe in Bitcoin. The only reason why Bitcoin is "volatile" is because people measure its value against Fiat. Once the world adapts to the "Bitcoin Standard", the prices of goods and/or services will be measured in satoshis (sats). Not USD or any other Fiat currency. Wasn't that Satoshi's dream?

Let's be realistic, bitcoin is still a volatile asset and we chose bitcoin because of its volatility. Most people just want to take advantage of its volatility to make big profits and become rich.
You guys are expecting bitcoin to become a national reserve and the US to use it to back the USD. Now you talk about “bitcoin standards”, so what do you want the US to do with bitcoin?

Anyways, Bitcoin helps strengthen the USD because of its store of value properties (deflation). Just like how Gold helped keep the US economy afloat. Remember when the USD was backed by Gold? It should only be a matter of time before the US gets its own BTC reserve. Afterwards, the government can decide to back the USD with BTC. Just "hodl" on tight as this is going to be a wild ride.

The purpose of national reserves is to be used in case of emergency of the national economy, they will never be used if the economy is in a stable phase.
The US government is the country that proposed abandoning the gold standard so they can print USD at will, I don't think they will go back to the gold standard or use another asset as a standard, especially a volatile asset.

[NewRanger]

The purpose of national reserves is to be used in case of emergency of the national economy, they will never be used if the economy is in a stable phase.
The US government is the country that proposed abandoning the gold standard so they can print USD at will, I don't think they will go back to the gold standard or use another asset as a standard, especially a volatile asset.

Yes, on the other hand, maybe we can try to look internally to see whether the strategy is relevant to the vision and mission of the central bank in general, the government there will also coordinate with them and they also have the capacity to maintain financial stability and its circulation in society indirectly.

[Fara Chan]

Yes, on the other hand, maybe we can try to look internally to see whether the strategy is relevant to the vision and mission of the central bank in general, the government there will also coordinate with them and they also have the capacity to maintain financial stability and its circulation in society indirectly.

The government and the central bank are also people who look more at the profitable side for them when they want to make a plan or a certain goal through the financial and economic sectors. Because they certainly will not support anyone's plan if the plan does not bring benefits to them and also to the local community, so we don't have to believe too much in their vision and mission as long as we can still take a healthier way such as prioritizing Bitcoin over money even though with money we can buy Bitcoin.

[Abiky]

BRICS? Are you serious? This association of countries is barely breathing. Well, sometimes the participants get together and what does it give? No important decisions or actions. So, they eat and chat about various topics, and then what? All this seems so pathetic that it causes nothing but laughter. No, time has passed and it is too late to try to resist stronger players on the world stage. It seems to me that just a little more and it will all fall apart in an instant. No, this is not the level to pretend to be something. The GPP of the participating countries is incredibly small.

Isn't China the world's second-largest economy? And what about Russia? It is one of the largest oil and gas exporters in the world. These two countries alone make BRICS a "force to reckon with". I know they're still behind the US in terms of economy and military, but we all gotta start somewhere. By slowly removing dependence on the USD, BRICS can begin its journey towards building a better future. US hegemony can't last forever. If the USD goes down, another currency will replace it.

As for Bitcoin, it will continue to grow in demand for as long as its considered the next store of value. It will never replace Fiat because of the way it was designed (decentralized). But it could remain an alternative for those seeking true freedom and privacy. Hopefully, the US and other countries add BTC to their reserves for even higher prices in the long term. Just my two sats.