Can Bitcoin Become a Global Reserve Asset?

[DrBeer]

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.

Probably yes. But only if the exchange rate stabilizes. As we can see, over the last month, Bitcoin has lost almost $20,000 in value, or about 20%, which is unacceptable for a reserve asset. The price will probably soon reverse and start to rise... But it is also possible that this will not happen... Or, in general, the price will continue to decline. In short, until the interdependent issues of volatility and the acceptance of Bitcoin as a reserve currency are resolved, it is too early to talk about Bitcoin as a reserve.

[Smartvirus]

It just needs adoption to be a reserve asset for few developed and big economy countries and global reserve asset is just matter of time.
Good news is, trump announced that US gonna be biggest holder of bitcoin. If it can further advance to reserve and buying for reserve. It will have dramatic effect toward the legitimacy of bitcoin in the eyes of smaller countries.

When we look at the gold reserves and the qualities that made it a reserve, Bitcoin haven’t really got that and the people or nations that invest in Bitcoin today see it more for its ability to increase in value over time and not a very long period of time at that and so, they try to leverage on that, to build a system that would enable them make a whole lot of it and they don’t hope to buy Bitcoin with their fiat currency even, so the currency doesn’t feel second place after the all valued Bitcoin.

[batang_bitcoin]

The world is becoming aware of the emerging markets that they can enjoy and benefit from. And one of it is the actuality of Bitcoin and then the rest of the crypto market. The US and the others have done it already, and everyone is going to have that convincing thought that if the big men are doing it, they have to do it as well. So, it might take for some time but we know that they're going to be there and trying to be the first one in line for the second batches of the countries that shall make it as their global reserve, and that makes it as a global reserve when there are several of them that have adopted it that way.

[Abiky]

Probably yes. But only if the exchange rate stabilizes. As we can see, over the last month, Bitcoin has lost almost $20,000 in value, or about 20%, which is unacceptable for a reserve asset. The price will probably soon reverse and start to rise... But it is also possible that this will not happen... Or, in general, the price will continue to decline. In short, until the interdependent issues of volatility and the acceptance of Bitcoin as a reserve currency are resolved, it is too early to talk about Bitcoin as a reserve.

Well, the crypto market isn't as "mature" as the precious metals market nor the stocks market. There will be huge price swings (volatility) in the timebeing. Since Bitcoin is a long-term thing, governments shouldn't have a problem adding it to their reserves. It's the "next big thing". I think governments will end up diversifying between BTC and Gold for complete peace of mind.

I'd say we're still early in the game. Wait until the whole world adopts BTC, and things will never be the same. Bitcoin will have much higher market prices and greater network security. We'll see what goverments will do with BTC in the long run.

[free-bit.co.in]

Well, the crypto market isn't as "mature" as the precious metals market nor the stocks market. There will be huge price swings (volatility) in the timebeing. Since Bitcoin is a long-term thing, governments shouldn't have a problem adding it to their reserves. It's the "next big thing". I think governments will end up diversifying between BTC and Gold for complete peace of mind.

You need to know that national reserves are used to stabilize the economy, ensure security and especially to respond to unexpected financial crises and economic downturns. They do not intend to invest for profit, what they need is an asset that can be used at any time.
It is no coincidence that they have chosen only gold and foreign currencies, rather than any speculative assets like stocks, over the past decades. So don't tell them that because bitcoin has long term potential, they should consider it. They won't bother because that's not what they're looking for.

I'd say we're still early in the game. Wait until the whole world adopts BTC, and things will never be the same. Bitcoin will have much higher market prices and greater network security. We'll see what goverments will do with BTC in the long run.

As long as bitcoin remains volatile due to manipulation and speculation, governments will not need it.

[DrBeer]

Probably yes. But only if the exchange rate stabilizes. As we can see, over the last month, Bitcoin has lost almost $20,000 in value, or about 20%, which is unacceptable for a reserve asset. The price will probably soon reverse and start to rise... But it is also possible that this will not happen... Or, in general, the price will continue to decline. In short, until the interdependent issues of volatility and the acceptance of Bitcoin as a reserve currency are resolved, it is too early to talk about Bitcoin as a reserve.

Well, the crypto market isn't as "mature" as the precious metals market nor the stocks market. There will be huge price swings (volatility) in the timebeing. Since Bitcoin is a long-term thing, governments shouldn't have a problem adding it to their reserves. It's the "next big thing". I think governments will end up diversifying between BTC and Gold for complete peace of mind.

I'd say we're still early in the game. Wait until the whole world adopts BTC, and things will never be the same. Bitcoin will have much higher market prices and greater network security. We'll see what goverments will do with BTC in the long run.

You're absolutely right, but the nuance is that this all works very well in a “let's put it off for the long term” model. The problem is that the state needs money here and now to solve current issues (financial problems, natural disasters, attacks by aggressors, etc.), and gold and foreign exchange reserves in this model play the role of a “compensator” and a means for quickly solving the problem of a lack of money.
 If such moments coincide more or less frequently with Bitcoin's losses, the state will go bankrupt faster than with gold or currencies. On the other hand, if Bitcoin is stable (“horizontal stability”), market speculators who earn well on the volatility of cryptocurrencies will lose interest in it...

[Cgrexp]

Bitcoin’s supply is fixed. It is capped at twenty-one million, which cancels out inflation, which is a good hedge against inflation. To be a reserve asset, it needs to be stable. Market behavior needs to be predictable and there needs to be deep local liquidity. So Bitcoin also needs to function as a deep, liquid market where large transactions can occur without price disruptions. Bitcoin’s capitalization and liquidity are not as large as gold’s, but conceptually Bitcoin meets the criteria for a reserve asset. Bitcoin is currently in the process of growing into a financial asset and building confidence. So the process is indeed slow and depends on the trajectory.

[Ayers]

Bitcoin’s supply is fixed. It is capped at twenty-one million, which cancels out inflation, which is a good hedge against inflation. To be a reserve asset, it needs to be stable. Market behavior needs to be predictable and there needs to be deep local liquidity. So Bitcoin also needs to function as a deep, liquid market where large transactions can occur without price disruptions. Bitcoin’s capitalization and liquidity are not as large as gold’s, but conceptually Bitcoin meets the criteria for a reserve asset. Bitcoin is currently in the process of growing into a financial asset and building confidence. So the process is indeed slow and depends on the trajectory.

Exactly, bitcoin possesses and meets the criteria to be a reserve asset, or a safe haven like gold. Not only does it have a fixed supply (more scarce than gold), its decentralized nature is also an important criterion that only gold has achieved, so far. But now we have bitcoin.

The barriers preventing bitcoin from becoming a global reserve asset are its volatility and recognition. Bitcoin not only needs to become more stable, but also needs to be recognized and legalized globally. And all of this takes time for bitcoin to achieve, it won't happen overnight and we need to be patient.

[YOSHIE]

Yes it's possible to become the world global reserve Asset,

For global assets, no, even though you see that currently Bitcoin can be relied on to be the best economic source for the country in terms of taxes, mining, business and investment, everything is still happening, pros and cons, not all parliaments have approved it to be adopted and made a state asset. the risk is much more dangerous.

The consideration is that if at any time the internet is lost and congested, the network errors and Bitcoin drops, plus Bitcoin is not in physical form, there are many reasons why it cannot be used as a global asset. Currently, the only countries that are adopting Bitcoin are those who are brave, of course considering the risks involved, there are many factors that must be thought about before Bitcoin is made a global asset, don't just think about profits, think about risks.

[jaberwock]

The need to make bitcoin a global reserve is obviously a big one, however for what purpose? To make the price go up even more? We have tried that, but people got scared and sold. This current drop in price for example? Well the old whales, people who got bitcoin at very cheap price, under a thousand dollars, and had tens of thousands, sold their bitcoins, and for that reason the price dropped because others followed, even recent newbies sold out of fear.

Meanwhile, ETF's, companies like MicroStrategy or BlackRock or even banks, are buying up bitcoin like crazy because they know that 100k is cheap for bitcoins future. As long as we make these mistakes and get others richer, then global reserve asset won't change a thing.

[Abiky]

Bitcoin’s supply is fixed. It is capped at twenty-one million, which cancels out inflation, which is a good hedge against inflation. To be a reserve asset, it needs to be stable. Market behavior needs to be predictable and there needs to be deep local liquidity. So Bitcoin also needs to function as a deep, liquid market where large transactions can occur without price disruptions. Bitcoin’s capitalization and liquidity are not as large as gold’s, but conceptually Bitcoin meets the criteria for a reserve asset. Bitcoin is currently in the process of growing into a financial asset and building confidence. So the process is indeed slow and depends on the trajectory.

Well, Gold isn't stable either. It's just less-volatile than Bitcoin. If countries worldwide consider Gold to be a Global Reserve Asset, adding Bitcoin too should be a no-brainer. Institutional investors are already amassing a large portion of the circulating supply. Many have gone as far as declaring BTC "the next Digital Gold". In fact, Bitcoin is better than Gold because not only its supply is fixed and predictable, but it's also extremely-portable. It can be "transported" across the globe without "friction".

I believe we're still in the early days. Wait a few more decades (1-2 more decades), and BTC will finally become a Global Reserve Asset. Who knows? Maybe it will go as far as overcoming Gold's spot in market cap. One can only hope...

[fillippone]

I believe we're still in the early days. Wait a few more decades (1-2 more decades), and BTC will finally become a Global Reserve Asset. Who knows? Maybe it will go as far as overcoming Gold's spot in market cap. One can only hope...

I think this I so the correct mindset, and timeframe as well.
I do hope I will be alive when Bitcoin surpass Gold in market cap and becomes the ultimate, perfect, store of value. This is a more realistic view, rather than the one that see Bitcoin as the next wave of investment from Central Banks in 2030 as some research suggested.

[Iranus]

Well, Gold isn't stable either. It's just less-volatile than Bitcoin. If countries worldwide consider Gold to be a Global Reserve Asset, adding Bitcoin too should be a no-brainer. Institutional investors are already amassing a large portion of the circulating supply. Many have gone as far as declaring BTC "the next Digital Gold". In fact, Bitcoin is better than Gold because not only its supply is fixed and predictable, but it's also extremely-portable. It can be "transported" across the globe without "friction".

I believe we're still in the early days. Wait a few more decades (1-2 more decades), and BTC will finally become a Global Reserve Asset. Who knows? Maybe it will go as far as overcoming Gold's spot in market cap. One can only hope...

Honestly, I do not doubt that BTC will eventually be added to national reserves and become a global reserve like gold. But it will take a long time, maybe a decade or two or even longer, for that to become a reality.

But to say it can surpass the capitalization of gold, I am very skeptical. The gap in capitalization and demand between gold and bitcoin is too large, and gold is completely superior.

Bitcoin is not better than gold as you think, both have pros and cons.

[Abiky]

Honestly, I do not doubt that BTC will eventually be added to national reserves and become a global reserve like gold. But it will take a long time, maybe a decade or two or even longer, for that to become a reality.

But to say it can surpass the capitalization of gold, I am very skeptical. The gap in capitalization and demand between gold and bitcoin is too large, and gold is completely superior.

Bitcoin is not better than gold as you think, both have pros and cons.

I admit Bitcoin replacing Gold's market cap is a far stretch. But if BTC continues to rise at an unprecedented rate, this will eventually become a reality. Imagine if the demand surpasses the number of BTC mined, for a prolonged period of time. There will be a supply shock, effectively rising prices all the way to Mars. Based on AI's calculations, 1 BTC needs to be worth $1.4m to be able to reach Gold's current market cap of $28T. There have been many predictions from experts claiming that BTC will cross $1m soon, so anything's possible.

Until then, let's focus on buying and holding for the long run. Market prices took a dive recently, making this a perfect opportunity to build true, generational wealth. I'm sure governments won't let this opportunity pass by.

[fredericktaylor]

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 will become a global reserve asset at some point, but it will take time. When most of the powerful large and small countries in the world accept Bitcoin and start forming a Bitcoin Strategy Reserve Assets, along with smaller countries gradually accepting and forming a Bitcoin Strategy Reserve, Bitcoin can be expected to become a global reserve asset. Various countries have already accepted Bitcoin and formed Bitcoin Strategy Reserve, and work is underway to form Bitcoin Strategy Reserve in more countries. Over time, ordinary people and small and large businessman are buying large amounts of Bitcoin and holding it for the future because Bitcoin long-term investment system and future asset. Holding it for the long term can protect against inflation in the future and can expect profits in the long term.

[Jaksonhard]

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.

Should Bitcoin ever be adopted as a universal reserve success, we should recognize that this does not have to be an institution or centralization. The adoption and transition will already be happening ab-hoc and on the merits of the technology and the people. In the near future, Bitcoin will likely exist with fiat as options to the individual on which money is best for their needs. Financial systems are rapidly changing and evolving and Bitcoin is part of that change and offers options. Those who are early adopters as the world moves towards a more flexible and decentralized monetary option will benefit.

[LeyMonte]

The barriers preventing bitcoin from becoming a global reserve asset are its volatility and recognition. Bitcoin not only needs to become more stable, but also needs to be recognized and legalized globally. And all of this takes time for bitcoin to achieve, it won't happen overnight and we need to be patient.

Yes, Bitcoin needs to be legalized. Not long ago, bitcoin did not have that much legality and gradually everyone wants to know about bitcoin and developed countries have started legalizing bitcoin. Although it will not happen soon, it is hoped that bitcoin will definitely get legalization in the future. The way the modern world is moving forward, the modern world will move forward further by getting bitcoin legalized.

[Iranus]

I admit Bitcoin replacing Gold's market cap is a far stretch. But if BTC continues to rise at an unprecedented rate, this will eventually become a reality. Imagine if the demand surpasses the number of BTC mined, for a prolonged period of time. There will be a supply shock, effectively rising prices all the way to Mars. Based on AI's calculations, 1 BTC needs to be worth $1.4m to be able to reach Gold's current market cap of $28T. There have been many predictions from experts claiming that BTC will cross $1m soon, so anything's possible.

Even if bitcoin hits $1.4 million or $2 million in the future, bitcoin will not surpass gold. Because gold's capitalization won't stand still waiting for bitcoin to overtake it.
Bitcoin could only overtake gold if demand for it spiked but demand for gold plummeted, but that's clearly never going to happen. Because gold has been around for more than 5 thousand years but the demand for it has never decreased, it has even increased over time. As you can see, despite the increasing supply of gold, but supply still cannot meet demand.

Until then, let's focus on buying and holding for the long run. Market prices took a dive recently, making this a perfect opportunity to build true, generational wealth. I'm sure governments won't let this opportunity pass by.

When the bear market comes, we should take the opportunity to buy as much as possible, we will definitely be able to make huge profits in the future. But forget about governments buying bitcoin just because its price dropped, they don't need it like we think.

[FanEagle]

Realizing bitcoin as a global reserve is risky move only for the price of it, and nothing about bitcoin itself is great. On top of that, miners are regular people, it is not nations, they do not have mining operations made by tax payer money, we have just normal regular people, companies, and they mine bitcoin.

It means regular people would be printing money that governments are paying to get, which is literally opposite of what the world has seen so far, normally governments print money and we work to get that money, governments can print whenever it wants, but if they have global reserve, that means people will print money instead and governments will try to get it instead. That is actually a great thing for all of us.

[juttsab@]

Probably yes. But only if the exchange rate stabilizes. As we can see, over the last month, Bitcoin has lost almost $20,000 in value, or about 20%, which is unacceptable for a reserve asset. The price will probably soon reverse and start to rise... But it is also possible that this will not happen... Or, in general, the price will continue to decline. In short, until the interdependent issues of volatility and the acceptance of Bitcoin as a reserve currency are resolved, it is too early to talk about Bitcoin as a reserve.

Well, the crypto market isn't as "mature" as the precious metals market nor the stocks market. There will be huge price swings (volatility) in the timebeing. Since Bitcoin is a long-term thing, governments shouldn't have a problem adding it to their reserves. It's the "next big thing". I think governments will end up diversifying between BTC and Gold for complete peace of mind.

I'd say we're still early in the game. Wait until the whole world adopts BTC, and things will never be the same. Bitcoin will have much higher market prices and greater network security. We'll see what goverments will do with BTC in the long run.

You're absolutely right, but the nuance is that this all works very well in a “let's put it off for the long term” model. The problem is that the state needs money here and now to solve current issues (financial problems, natural disasters, attacks by aggressors, etc.), and gold and foreign exchange reserves in this model play the role of a “compensator” and a means for quickly solving the problem of a lack of money.
 If such moments coincide more or less frequently with Bitcoin's losses, the state will go bankrupt faster than with gold or currencies. On the other hand, if Bitcoin is stable (“horizontal stability”), market speculators who earn well on the volatility of cryptocurrencies will lose interest in it...

Next generation will be more impressed by Bitcoin because it is more stable than any coin and no person feel like this will be scam with any person because that is decentralized And nobody can control the price of BTC . We know that every country has their local currency abd government is controling that and price of things are going down and we are watching scams by government because they are eating money and people want fair transfer of money and that is possible by BTC transaction and no one can see our assets and all keys are saved in our notes and we have key phrases . If person will treat  irresponsible behavior they will lose assets , otherwise they are safe .