Can Bitcoin Become a Global Reserve Asset?

[Queen uloma]

Yes it's possible to become the world global reserve Asset,
‎The fact that Bitcoin could become a global reserve asset has generated alot of attention in this modern years.
‎When we are talking about a global reserve Asset we are talking about an element that countries and the central banks handle to support their currencies, pay their international debit and sustain the economic stability.
‎In order for Bitcoin to become reserve global asset more countries, individuals, institution must agree to use it.
‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

[_act_]

It is good that you know that but it is not something new to us on this forum. I have been seeing posts like this before Trump become the president but when he became the president, more states and countries want to add bitcoin to their reserve asset. In the next 10 to 20 years, many countries would have bitcoin in their reserve assets. I just wish China will change their stance also one day to be among the countries.

[Marvell1]

It is good that you know that but it is not something new to us on this forum. I have been seeing posts like this before Trump become the president but when he became the president, more states and countries want to add bitcoin to their reserve asset. In the next 10 to 20 years, many countries would have bitcoin in their reserve assets. I just wish China will change their stance also one day to be among the countries.

If the majority of the world recognizes it and countries proceed to add bitcoin to their national reserves. I think China will no longer stand on the sidelines, and whether they like it or not, they have to adapt to the development of the world.

But my question is, do governments and central banks really want to add bitcoin to their reserves? We are Bitcoin investors and on a Bitcoin forum, so it is not hard to understand why we are bullish on Bitcoin. But if we look at it objectively, I really doubt it and it will probably take a long time for that to become a reality.

Bitcoin is still too young to fit the role of a safe haven asset or a national reserve, IMO.

[Marvelockg]

‎When we are talking about a global reserve Asset we are talking about an element that countries and the central banks handle to support their currencies, pay their international debit and sustain the economic stability.

Looking at bitcoin as a global asset in the context of the entire world making use of it either as an edge against inflation or what have you, it is going to be an issue because there is no way the entirety of the world that has one difference or the other will buy into a single asset class even though we know that bitcoin is of a worth that can be used as a global asset. the fact that some nation still feel that bitcoin is a united state brain child will continue to make regions like china become silent about bitcoin and might not be too willing to accept bitcoin like that.

a formal acceptance by countries might not be easily attainable but from an individual point of view, it is very possible for bitcoin to be acceptable by citizens of all the countries of the world and for it to be a popular asset across nations.

[yudi09]

Making Bitcoin a global reserve asset is not a foreign concept or idea to us here, even though we cannot yet name any countries that have made Bitcoin a global reserve asset as they have done with other assets.

The United States, for example, has a large amount of Bitcoin, as I know from reports circulating on the internet. Although the Bitcoin owned by the United States is the result of confiscation, I consider this amount of Bitcoin to have been made a global reserve asset.
Countries such as El Salvador, which has made Bitcoin legal tender, are also close to this.
Not to mention reports from several countries that have proposed making Bitcoin a reserve asset.

[₿itcoin]

yeah you are correct regarding the chances of Bitcoin becoming a global reserve asset... Bitcoins supply is fixed, capped at 21 million, canceling out inflation, which is a good conservation against inflation. Its digital & global focus makes it useful to countries, businesses & people who want something outside of traditional fiat. on the other hand to be a reserve asset though, it needs to be stable, market behavior needs to be predictable & it needs deep local level liquidity. Bitcoins volatility & regulatory scrutiny are challenges, preventing new economy investors from providing support. For it to reach a global reserve status, central banks & governments would need to adopt it, yet many countries is still a suspicious state. So, yeah  bitcoin has the posibility of becoming an asset class a global reserve currency class, however dont expect that to occur overnight, dude...

[fillippone]

Yes it's possible to become the world global reserve Asset,
‎The fact that Bitcoin could become a global reserve asset has generated alot of attention in this modern years.
‎When we are talking about a global reserve Asset we are talking about an element that countries and the central banks handle to support their currencies, pay their international debit and sustain the economic stability.
‎In order for Bitcoin to become reserve global asset more countries, individuals, institution must agree to use it.
‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

Bitcoin already is the best Reserve Asset.
What is missing from the equation is the liquidity and the total market size.
Bitcoin is worth less than half of Nvidia. I think this gives you the measure of how much it is undervalued.
At less than 10% of the total Gold market capitalisation, the potential is here, but it will take time.

[slapper]

You're not wrong that adoption leads to reserve status, but it's a weirder process than most people think. The dollar was not destined to be the world reserve by some meeting of agreement. It was an inevitability after WW2 because the US owned all the gold and Europe needed capital to rebuild. Path dependence has always been much more important than collective agreement

Bitcoin's edge is precisely that it doesn't require permission. When your own currency is going to hell(Lebanon, Argentina, Turkey), you do not have the luxury to wait for consensus among institutions. It's already happening for individuals as a personal reserve asset. This is how all of these transitions really happen: from the bottom up, formalized later. Even countries like the Central African Republic adopt it, backtracked under IMF pressure, the demand is there and will not be disappear

Bitcoin also would have to function as a deep, liquid market where large transactions can occur without price disruption. It's market cap is ~$600 billion USD. Total global reserves are over $12 trillion. It doesn't need to be there to get a foot in the door. If central banks started with a 5-10% allocation it would lend legitimacy to the asset class to set off the network effects you describe

[Mrbluntzy]

for Bitcoin to become reserve global asset more countries, individuals, institution must agree to use it.

In the place where you said that they all "must agree to use it," I believe it will be more appropriate if you had used the phrase, "have to agree to use it" and not "must" because everyone is to be allowed to willingly adopt, embrace and wants to use Bitcoin and not a must. Bitcoin will become a global reserve asset if all the government of the countries in this world truly understand the purpose of Bitcoin, embrace it and support it, that bold move will encourage people to willingly adopt Bitcoin because no body will want to miss out.

[SuperBitMan]

‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

Some countries their government has already made bitcoin a legal gender and it is being used to purchase things on a regular, we have a lot of supermarket that are now accepting Bitcoin so you can go into those supermarket pick whatsoever you want and then pay with Bitcoin, we even have store here in my country where they accept Bitcoin whenever you buy something from them, so people use Bitcoin for daily transaction and saving, in fact they mostly use bitcoin for saving these days, because saving in Bitcoin is more better than saving in a bank the reason why saving in Bitcoin is more better is because you can have huge amount of profit by saving in Bitcoin than bank, if you save in bank you will be paying fees but that those not happen in Bitcoin.
So bitcoin can be said to be a global asset, a lot of countries are already using Bitcoin and even adopting it as their reserve.

[Abiky]

Yes it's possible to become the world global reserve Asset,
‎The fact that Bitcoin could become a global reserve asset has generated alot of attention in this modern years.
‎When we are talking about a global reserve Asset we are talking about an element that countries and the central banks handle to support their currencies, pay their international debit and sustain the economic stability.
‎In order for Bitcoin to become reserve global asset more countries, individuals, institution must agree to use it.
‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

Bitcoin is practically the "Global Reserve Asset". The Internet is accessible worldwide, and anyone can get into it. We're already seeing institutional investment firms and governments amassing large amounts of BTC for their own benefit. It's not yet at the same magnitude as Gold, but they'll get there sooner or later.

In the future, countries will compete against each other in building their own Bitcoin reserves. Right now, they're accumulating Gold in-mass. But that's bound to change in the long run. I'm certain BTC will "replace" Gold. Just you wait and see.

[Odohu]

Bitcoin is already positioning for this historic role as it is a subject of deliberation in many nations and institution. I know it will take some time but that is where things are headed to since people have seen the weakness in the fiat such as inflation and weaponization of the dollar. People are desperately lookng for alternatives and Bitcoin is a suitable candidate for that alternative. Although gold is still there as well but Bitcoin has a lot of advantages over gold.

[AirtelBuzz]

‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

Some countries their government has already made bitcoin a legal gender and it is being used to purchase things on a regular, we have a lot of supermarket that are now accepting Bitcoin so you can go into those supermarket pick whatsoever you want and then pay with Bitcoin, we even have store here in my country where they accept Bitcoin whenever you buy something from them, so people use Bitcoin for daily transaction and saving,

Some governments have already made Bitcoin legal tender and it is being used regularly to purchase various things, similarly, we are seeing recently that, a fast food chain in the United States is looking to create a Bitcoin reserve they even will accept everything, i.e. all payments at their restaurant, through Bitcoin. Anyway, Bitcoin will be legal tender, not legal gender, as you incorrectly stated.

in fact they mostly use bitcoin for saving these days, because saving in Bitcoin is more better than saving in a bank the reason why saving in Bitcoin is more better is because you can have huge amount of profit by saving in Bitcoin than bank, if you save in bank you will be paying fees but that those not happen in Bitcoin.
So bitcoin can be said to be a global asset, a lot of countries are already using Bitcoin and even adopting it as their reserve.

In this case it is correct that Bitcoin can be called a global asset, Which is why nowadays, everything from supermarkets to restaurants are accepting this asset as direct payment and aiming to save a huge amount. You are right that saving Bitcoin is better than saving in a bank because there is a higher potential for profit and I know Bitcoin provides a cheap way to send money internationally, but everyone needs to be aware of this issue and gain mental fortitude that the market volatility of this digital gold is very high.

[Danica22]

Yes it's possible to become the world global reserve Asset,
‎The fact that Bitcoin could become a global reserve asset has generated alot of attention in this modern years.
‎When we are talking about a global reserve Asset we are talking about an element that countries and the central banks handle to support their currencies, pay their international debit and sustain the economic stability.
‎In order for Bitcoin to become reserve global asset more countries, individuals, institution must agree to use it.
‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

Bitcoin is practically the "Global Reserve Asset". The Internet is accessible worldwide, and anyone can get into it. We're already seeing institutional investment firms and governments amassing large amounts of BTC for their own benefit. It's not yet at the same magnitude as Gold, but they'll get there sooner or later.

In the future, countries will compete against each other in building their own Bitcoin reserves. Right now, they're accumulating Gold in-mass. But that's bound to change in the long run. I'm certain BTC will "replace" Gold. Just you wait and see.

Instead of thinking that bitcoin will replace gold, central banks will accumulate bitcoin instead of gold in the future. Why don't you think both will coexist and will be the top choice?

I am also optimistic that bitcoin has the potential to become a global reserve asset because of its decentralized and scarce nature. It has a lot of potential and is well suited to become the world's next safe haven asset. But to say that it will replace gold, I don't think so. Bitcoin is not so perfect that it can replace an asset that has been trusted by humans for thousands of years like gold. Bitcoin will be an alternative to fiat and gold, but it will never be able to replace both.

[KiaKia]

It is good that you know that but it is not something new to us on this forum. I have been seeing posts like this before Trump become the president but when he became the president, more states and countries want to add bitcoin to their reserve asset. In the next 10 to 20 years, many countries would have bitcoin in their reserve assets. I just wish China will change their stance also one day to be among the countries.

If the majority of the world recognizes it and countries proceed to add bitcoin to their national reserves. I think China will no longer stand on the sidelines, and whether they like it or not, they have to adapt to the development of the world.

But my question is, do governments and central banks really want to add bitcoin to their reserves? We are Bitcoin investors and on a Bitcoin forum, so it is not hard to understand why we are bullish on Bitcoin. But if we look at it objectively, I really doubt it and it will probably take a long time for that to become a reality.

Bitcoin is still too young to fit the role of a safe haven asset or a national reserve, IMO.

You falled for the scheme, because China is only pretending to not have anything to do with Bitcoin, in fact they have everything to do with Bitcoin, China has always like to do their things hidden, away from the world, they are very secretive.

Do you know that there are many cars in China that are far more futuristic than those build in other countries? Such cars should be on every TV channels and news but they don't care, there are locations in China that feels like you are in 2056.

I wonder why people aren't curious about Hong Kong, if everything is allows to run in Hong Kong why does China say no to Bitcoin? If they don't want Bitcoin they would allow Hong Kong to get involved too, they are also playing games but not ready to prove anything to the world.

China is also a big adopter of Bitcoin, I won't look less on them simply because they don't have a Bitcoin address that can be identified as China's very own, they are smarter, they have always been.

[Graph001]

Bitcoin is unlikely to become the main global reserve asset, but it has the potential to become an important part of the global reserve like gold. Because the Boishakh Reserve is not only about high price or demand. Among the strengths of Bitcoin are its limited supply and increasing demand, as well as its decentralized nature, meaning that no single country or government controls it, and it is easily transferable. Which makes it attractive as a hedge against inflation and a politically neutral asset. However, the main problem is the volatility of its market price. Central banks want stability and protection. Since it does not have a fully developed global regulatory framework and does not have the deep liquidity or trust of traditional reserve assets like the US dollar and gold. Therefore, although its acceptance is increasing day by day, it cannot be considered a global reserve asset. It may be an investment attraction for ordinary people and most large companies, but it has not yet fully gained people's confidence to become a global reserve asset.  Most countries in the world still consider gold or the US dollar as their reserve assets. Since they can see and touch these things before their eyes, this has increased their abandonment, but since it is an online-based cryptocurrency, people are still not willing to accept it as a reserve asset.

[348Judah]

If bitcoin becomes a global most reserved currency, then we should know that it does not have to be from the government or go centralized before we could achieve anything related to this success, we are getting there already, sooner it will coexist together with fiat and the people will have to choose between which they want for a their uses the most, because things are fast advancing as well as changing for good with bitcoin.

[Fortify]

Yes it's possible to become the world global reserve Asset,
‎The fact that Bitcoin could become a global reserve asset has generated alot of attention in this modern years.
‎When we are talking about a global reserve Asset we are talking about an element that countries and the central banks handle to support their currencies, pay their international debit and sustain the economic stability.
‎In order for Bitcoin to become reserve global asset more countries, individuals, institution must agree to use it.
‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

It is possible of course, but it might actually be detrimental for the future of bitcoin in its current state if that was to take place. It has quite a limited amount in circulation, only 21 million although it can of course be used fractionally. Bitcoin, at least according to the creator, was always meant to be a currency first. When governments sit on large chunks of it then you lose liquidity and it has the potential to stop flowing. Bitcoin is good as a tool for the people and away from government, let's hope it stays that way.

[Ishicryptic]

Yes it's possible to become the world global reserve Asset,
‎The fact that Bitcoin could become a global reserve asset has generated alot of attention in this modern years.
‎When we are talking about a global reserve Asset we are talking about an element that countries and the central banks handle to support their currencies, pay their international debit and sustain the economic stability.
‎In order for Bitcoin to become reserve global asset more countries, individuals, institution must agree to use it.
‎So when the government see it as a legal financial instrument and also the businesses and consumer use it daily for transaction and saving, then Bitcoin can become a Global Reserve Asset in the world.

Bitcoin already is the best Reserve Asset.
What is missing from the equation is the liquidity and the total market size.
Bitcoin is worth less than half of Nvidia. I think this gives you the measure of how much it is undervalued.
At less than 10% of the total Gold market capitalisation, the potential is here, but it will take time.

Considering when Bitcoin was created less than two decades ago and it has attained a milestone achievement in the global finance despite all the skepticism from individuals to institutions and governments. I agree that the potentials is here for Bitcoin to become a top global researve asset, it is only a matter of time before it totally actualizes to it's full potentials. The testimony of it's actualization so far is that many that criticized Bitcoin in the past are now in the forefront of hodling and endorsing it like Michael Saylor, and current administration of the US government. The good news is that we don't have to wait till Bitcoin becomes a total global researve asset before we can accumulate and hodl it as our own assets. Clearly it is the best asset for everyday people, institutions and governments to have as reserve for future profits.

[abhiseshakana]

Bitcoin already is the best Reserve Asset.
What is missing from the equation is the liquidity and the total market size.
Bitcoin is worth less than half of Nvidia. I think this gives you the measure of how much it is undervalued.
At less than 10% of the total Gold market capitalisation, the potential is here, but it will take time.

I agree with you. Bitcoin's capitalization and liquidity aren't as large as gold's, but conceptually, Bitcoin meets the criteria for a reserve asset. Given that market liquidity isn't a constant, the market will grow with institutional demand and market-making. The use of OTC markets for large flow executions without affecting exchange volumes indicates that effective liquidity far exceeds retail spot volumes. Liquidity will also arise from its use as a reserve asset and market structure. So, what needs to be seen is how quickly the global system will shift some of its reserve demand to assets that are truly scarce, difficult to censor, and verifiable on-chain.

10% is small, but from an optimistic perspective, 10% shows that Bitcoin still has room to grow without having to replace gold. Even a small partial substitution of gold (5-10%) could significantly boost its price. Bitcoin is currently on the path to monetary asset growth and is in the confidence-building phase. The process is indeed slow and depends on its trajectory. With institutional adoption, a clear settlement infrastructure, and passing shock tests, Bitcoin will fully fulfill the role of a traditional monetary asset. Currently, it is more like a speculative asset with characteristics of a digital gold alternative.