How can Bitcoin play a role as the main currency of every country?

[Negotiation]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

[viljy]

Something similar has already happened in history. Only instead of bitcoin, gold was the main currency. The second currency can be considered silver. From history, you can imagine what the economy would look like in such a case. No technological innovations every year, no development. Limited production for limited demand. The compression of lending to microscopic sizes, the absence of financial markets... This is the world before the era of world travel.

The modern financial system was born, in fact, from the moment when gold and silver poured into Europe from new lands (similar to the injection of money into economics under monetarism), then, with the creation of the Federal Reserve, the financial system became a "child", and then it became an "adult" with the abandonment of the gold standard.

And in this system, gold and silver have become commodities rather than currencies. That is why bitcoin is also a commodity in the modern system, not a currency. Another question is that financial capitalism is finite. In the meantime, bitcoin as a currency contradicts not only monetarism, but also Keynesian economics. If capitalism is replaced by another form of social order, then perhaps bitcoin will have a chance to become a currency in the new financial system.

[Stepstowealth]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run?

Will it ever be the case? I do not think so. Even though countries of the world decide to then accept Bitcoins and then adopt it as a currency they would never abandon their original currency or make it second to Bitcoin. Bitcoin will only be gone an option something as a second currency that would offer a choice to citizens in terms of use.

[tabas]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

I don't think that it doesn't have to go that way, that if Bitcoin becomes a global currency, every country will accept it as a legal tender. It doesn't have to make the other fiat currencies to be boycotted and make people stop using it. From what we can see, it's going to be as simple as an alternative payment method and currency, just as it is intended to be. The best comparison would be like this:
Before, the merchants and cashiers are going to ask you, cash or credit?
Now, it's going to be, cash, credit or Bitcoin?

[WatChe]

We must make our self clear with concept of centralised vs decentralised Bitcoin. The majority of governments don't have liking towards decentralised bitcoin. The Bitcoin adoption we see in some countries is a centralised bitcoin that goes through centralised exchanges and provide government necessary info to tax the custodian. Even if decentralised Bitcoin overcomes his problem of scalability and high fee it won't be adopted as centralised currency of the country because government don't have the ability to control and manipulate it like the centralised fiat currency.

[retreat]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

There is no need to imagine there because it is an impossible thing to happen seeing that the government is more concerned with securing their currency which is more influential on their economy than prioritising accepting Bitcoin as their main currency. Moreover, the function of Bitcoin itself is an alternative to the centralised fiat system issued by the government, which gives freedom to its users without any intervention, one thing that is hated by the government. And that's why the government is so strict about regulating Bitcoin and prefers to treat it like modern-day digital gold, which can provide long-term profits, rather than as a currency that can be used for transactions in general.

[Fortify]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

It can't and people who think it can replace every other currency are badly misinformed. The bitcoin network could barely cope with all the transactions that took place daily in a small country with a few million people. It's not even that efficient when it comes to transaction fees and there is too much volatility in the fees to be reliable - I don't want to pay 1% transaction fees one day and 5% the next, when banks can already offer more consistency. The best to hope for is a place and it's probably better if it's not officially sponsored, where it can serve larger transactions of say $500+. There are niches which it can be very successful in, like cross border trade - currency exchanges combined with bank fees can be brought down.

[Kelward]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

Firstly Bitcoin wasn't created to replace traditional currencies it was created as an alternative currency, something different from what we're used to. I don't think that traditional currencies can be eliminated because they're the identities of countries, except if the whole world becomes one global economy. That is where Bitcoin can be considered as a unified global currency but I doubt that something like that can happen. Again Bitcoin wasn't created to make any economy better, it is a store of value for anybody, institutions or government that holds it. It's a decentralized digital currency for those that enjoys their privacy, those that are avoiding fiat inflation and those that wants to make profit because it is a valued asset.

[SamReomo]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run?

The more genuine question should be what if Bitcoin gets legalized in every country of the world and gets accepted in all countries of the world? That would be a dream come true experience for most Bitcoin lover and then one will not worry about the centralized systems and one will not always have to rely on centralized systems.

But, who knows if that becomes a reality one day then in order to buy or keep Bitcoin one might have to get permission from the governments and also one may have to declare the wallets that could be used to keep Bitcoin. The centralized system won't allow everyone to be free from the bondage of centralization and thus they will do something by then if Bitcoin becomes fully regulated and accepted in all countries.

[Pinemarten]

I had an AI write a white paper on how to use crypto for transactions in any fiat currency with tax savings in mind. Since crypto ETFs came out their value seems to accurately track the underlying coin. The problem here in Canada is that any profit made when actual bitcoin is sold is capital gains taxed.

I will paste links to the PDF output from a few PDF sites. All the PDF are the same in case one site doesn't download for you. If a mod knows how to insert a PDF then feel free to do so and delete my links.

I have recently sold all my bitcoin, about CAD$100,000 worth, and bought 3 bitcoin ETFs. https://imgur.com/FLUGlOJ The prices were down that day, July 4, because NYC was closed but the Canadian markets were open where my funds are. My TFSA is maxed out for 2025 and my RRSPs will be beefed up before the deadline for 2025 depending on my income for the year. I finally retired for the 2nd time on July 2nd. They may still drag me out of retirement, as I have a while yet before I turn 65. I only made about $1400 'day trading' bitcoin in June. I have pumped up my margin and hope to get back to the $3,000/month target I made a few times the last time I retired. Since my day trade account is offshore, I only pay tax on the funds I bring back to Canada.


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[Promocodeudo]

Firstly Bitcoin wasn't created to replace traditional currencies it was created as an alternative currency, something different from what we're used to. I don't think that traditional currencies can be eliminated because they're the identities of countries, except if the whole world becomes one global economy. That is where Bitcoin can be considered as a unified global currency but I doubt that something like that can happen. Again Bitcoin wasn't created to make any economy better, it is a store of value for anybody, institutions or government that holds it. It's a decentralized digital currency for those that enjoys their privacy, those that are avoiding fiat inflation and those that wants to make profit because it is a valued asset.

You made a good point here and again Bitcoin was not also created to combat with any other currency or our fiat and beside both curency has their purposes and functions, of course you're right, traditional currencies can not face out completely because even as adoption is taking place globally, we still have some individuals that don't and won't believe in Bitcoin no matter what you tell them, another thing is the government, government of many countries differs in decision making and I don't think any of this nations will want to face out their traditional currency to replace it Bitcoin that has not been made handy beside Bitcoin is a digital currency, an asset, an investment and means of transaction, Bitcoin was created to give individuals hope especially those that are fade up with financial institutions and want to seek for alternatives way to add value to their money.

[peter0425]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

It will be too volatile. We’d be buying tissue paper for a different price today than tomorrow. It could be cheaper or more expensive tomorrow. The government won’t be able to control bitcoin to fit the situation. If they need to adjust their currency, they can’t do it. The demand might be too high which would drive the currency upwards and would make it more volatile.

[pooya87]

It cannot happen because of 3 reasons.

1. The world is not run under the same law for every country to adopt bitcoin as their national currency. Some small countries might recognize it as legal tender (like El Salvador) and it won't be wide spread.

2. Bitcoin network is not capable of nor designed to handle large number of transactions that can answer 8 billion people!

3. Most important reason is that the way economy is designed, it is impossible to have a limited supply currency to have a place in it. This broken deign demands unlimited fiat. So unless that changes (which is a fundamental change that nobody is willing to make and nobody has introduced any alternative) it remains impossible to integrate bitcoin into it.

[batang_bitcoin]

2. Bitcoin network is not capable of nor designed to handle large number of transactions that can answer 8 billion people!

Yeah, this!
I think that the issue should be firstly solve of what if the network is spammed just like what happened with Ordinals and BRC20. The fees would tremendously high and everyone wouldn't want to spend that much for fees if they're only paying for pennies.

[lizarder]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

To make Bitcoin the currency of every country, we must fight against the regulation of the Fiat currency first and that is not possible at all can be done by most countries. With so many countries in this world, my question is enough Bitcoin is used as an official currency by all existing countries. As an assumption of chaos that occurs worse and the economy of the poor country will continue to be depressed at the inflation stage which is quite widespread because they are unable to compensate for the amount of Bitcoin ownership because there is no money available to buy some steps to achieve a more developed economy.

The concept is simple to buy in large quantities, the country will become stronger in economic terms if Bitcoin becomes a currency from all countries. Then how for poor countries that cannot afford to buy bitcoin in a minimum number of limits, whether they will get out of economic problems or instead place them on far more worse economic problems and I don't think Bitcoin was created for that.

[Pinemarten]

I should simplify my post #10 to fit into a future using bitcoin for daily transactions. First there were shells, then beads, and then livestock etc. Then came copper/bronze coin. Gold was the longest lasting standard until the early 70's. US.gov gold value is pegged at $42.2222 for 261,498,926.2 troy ounces. The price was set by The Gold Reserve Act of 1934 ($35.00), which made it illegal to own bullion, and then adjusted by Congress in 1973 when the US left the gold standard. Between 1934 and 1973; US dollars were actually paper gold that made transactions easy and legal. If they sold that 261M ounces for $3500 they could buy 9M bitcoin at $100,000, or almost 1/2 the future total.

The current 'paper bitcoin' are ETFs. They should evolve over time to only a few of the best. Just like the Swiss franc and the US dollar did. Blackrock holds 3.25% of all mined bitcoin, and total ETFs hold a over 6%. These numbers go up and down with ETF inflows and outflows. Investment companies are sized by AUM, assets under management. This means they are managing actual coin and we, as ETF owners, actually control it. This was all laid down by the SEC when it approved bitcoin ETFs in Jan/2024. Governments should enable their bitcoin reserves to perform similar to ETFs. Issue shares and the share owners can use a card or app that withdraws; and then coverts to local currency at the current rate. As people 'cash' their ETFs at the end of the month to pay most bills, the price will dip. When they get paid on the 1st and 15th, then they buy back and the price goes up.

When I was paid direct deposit every Friday, the funds would transfer between about 12:01 and  2:00am. Everyone would run tabs at the bar and pay at closing; or use credit cards if they left before 'paytime'. Since ETF markets don't open until 9am local then the prices should 'pump and dump' every Friday morning on ETFs and therefore bitcoin. Volatile still, but at least it will be predictable.

I have three different ETF: iShares Bitcoin ETF - CAD, Purpose Bitcoin Yield ETF - CAD ETF Non-cur Hedged, and Evolve Bitcoin ETF. IBIT was was my 1st because it had a good rep. I then went to BTCY.B because it pays average 11% yield/dividend in monthly instalments. On July 3 my payout was CAD$1,295.12. EBIT, I just bought after it was too late to buy BTCY.B for the July 3 yield.

BTCY.B holds bitcoin but exercises 'covered call' options. https://www.investopedia.com/terms/c/coveredcall.asp  It seems I only need to hold the shares for the 'record' date to get the payout about 10 days later. On July 23-25, I may convert more shares to BTCY.B and then convert back after my ownership is recorded.

Paper like the Confederate dollar and German mark dove badly after they lost wars. Collectors still have 5 trillion Mark stamps issued by Germany in 1923. ETFs can't do this because the law states they need digital gold (bitcoin) to back up their digital money (ETFs). Since paper money is only used by criminals now (hookers will take plastic) we will never see paper bitcoin; it will be replaced by ETF cards, tap apps, etc.

[EarnOnVictor]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run?

The economy will be in shambles, many funds will not be accounted for, and the government will not be able to enforce so many seizures. Bitcoin wasn't wired for the economy but to complement the disparity in financial flows, give more privacy and to make people have the true rights over their money.

Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency.

This will not happen. The US and many other countries will not allow what they can't control to be their national currency.

[Ruttoshi]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

Bitcoin cannot be the number one currency in the world  to used by all, because it's decentralized and no government will accept it since they will not be able to control it. Government only embrace what they control and that's why they came up with fiat currency where they are in charge to do the printing of fiat whenever they want.

However, due to the increase in value of bitcoin overtime, majority of people holding bitcoin wouldn't want to use it as a currency but as an asset in order for them to make profit from it in future. If there is fiat as the second choice of currency, why will I use my bitcoin to pay for goods and services. the world is centralized and a centralized currency will always dominate.

[Oluwa-btc]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

It's going to take so much for one to actually see Bitcoin on this brighter side and I doubt there will be massive adoption of the currency by so many countries cause they all have different opinions and mindset and how they conclude on them. Besides we aware that overtime the adoption of Bitcoin has caused so many misunderstanding within and outside and if the government of any country can see the benefits and procure massive adoptions then there's possibility for it to play a better role in the country.

[philipma1957]

If it were the case that the main currency of every country in the world is Bitcoin. Then how do you think the world economy would be run? Because when Bitcoin becomes the main currency, the American dollar and other countries will have Bitcoin as their main currency. The local currency of that country will be associated with it as the second currency. In this case, how would Bitcoin be used or how can it play a good role in the world economy?

never happening.

btc has a long term issue  as it will run out of coins too soon.🔜

shame as it is a good invention.

most of us will die before the lack of mining rewards causes the switchover to doge.

the reality is doge is better for world wide currency due to an endless supply of coins and an endlessly shrinking rate of inflation.