Can Bitcoin Become a Global Reserve Asset?

[tottong]

‎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.

Many countries have begun to consider Bitcoin as a reserve asset. Although not universally accepted, Bitcoin is beginning to gain a place as a reserve asset, similar to gold for many countries.
Regardless of whether Bitcoin is used or not, it is now being considered a superior asset, and many countries may already be using it as a strategic reserve.
It doesn't matter if Bitcoin isn't seen as a legal financial instrument, and businesses and consumers use it daily, as many countries only allow it as an investment asset.

The most important part is not just seeing it as an instrument like a regular currency but how bitcoin can maintain its value in the long term so that its strength becomes the basis for strategic reserves.

[DanWalker]

‎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.

Many countries have begun to consider Bitcoin as a reserve asset. Although not universally accepted, Bitcoin is beginning to gain a place as a reserve asset, similar to gold for many countries.
Regardless of whether Bitcoin is used or not, it is now being considered a superior asset, and many countries may already be using it as a strategic reserve.

Which countries consider bitcoin as a reserve asset and add it to their national reserves along with gold?
To date, only a handful of small and medium-sized organizations and companies have adopted bitcoin as a strategic asset. Or some states in the US like New Hampshire, Arizona and Texas have passed bills and established bitcoin reserve funds. But that is just the state's strategic reserves and has nothing to do with the federal reserves held by the Fed.

How can a speculative asset become a global reserve asset? As long as bitcoin's volatility remains, it will not be able to become a reserve asset.

[Bluedrem]

Which countries consider bitcoin as a reserve asset and add it to their national reserves along with gold?
To date, only a handful of small and medium-sized organizations and companies have adopted bitcoin as a strategic asset. Or some states in the US like New Hampshire, Arizona and Texas have passed bills and established bitcoin reserve funds. But that is just the state's strategic reserves and has nothing to do with the federal reserves held by the Fed.

How can a speculative asset become a global reserve asset? As long as bitcoin's volatility remains, it will not be able to become a reserve asset.

The government of a country never wants to recognize assets that are not under their control as state assets. Like ordinary people, those who run the state are also aware of the future of Bitcoin and its potential but they ignore it because if Bitcoin is recognized as a state asset, they will have no control over that asset. If the government had accepted this reality, I think most countries in the world would have accepted Bitcoin as their lost asset by now.

[Zanab247]

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.

You think government don't know there is a benefit when they make BTC their reserve asset? They know just that they don't want to store government money for what they cannot afford to lose in the nearest future.

If it will be possible for all countries to agree to join hands together to make BTC global reserve asset, it will change so many things from the world, because there will be hope for those that involve in the reserve asset to be part of the benefits that will be coming out from the reserve  asset. But me and you know that there are some countries that will never make BTC their reserve asset, because their religion is against it.

[Danica22]

Cryptocurrencies are inherently speculative assets and lack stability. To serve as a reserve currency, stability must be maintained. Because no one would want a reserve asset that suddenly drops or rises by 10%. But Bitcoin can be a good store of value. If people hold onto their Bitcoin for many years, they will achieve good value.

Bitcoin can currently serve as a reserve asset for individuals, but I consider the likelihood of it becoming a reserve asset between nations to be low. Bitcoin's transaction speed, payment convenience, and most importantly, its transformation into a store of value will actually encourage individuals to invest more in Bitcoin.

Well, Gold isn't stable either. It's less-volatile than crypto, but not stable. Around a month ago, Gold hit a new ATH of over $4.2k. Now it went back to $4k. If Gold is already a reserve asset (despite slight volatility), then Bitcoin can easily become a Global Reserve Asset. It's the next big thing.

When you see big institutions, banks, and governments buying and holding BTC, you'll notice that something big is coming. Countries may be stockpiling Gold now, but in the future, they will be stockpiling only BTC. It will be an "arms race" of who accumulates the most Bitcoin. Once everybody is on the train, BTC will soar way beyond $1m. Just you wait and see.

Gold is also volatile but not dumped like bitcoin, or manipulated as often as bitcoin.
Gold has become a globally recognized and reserve asset as it has proven its worth to the world through world wars, pandemics and economic recessions. It took thousands of years for gold to prove its worth and be recognized by humans. It is not by chance that it is considered the best safe haven. Has Bitcoin ever experienced anything similar? No, Bitcoin has never experienced any of those things. Bitcoin will not become a safe haven just because it has some of the same characteristics as gold.

The prospect of banks and governments joining the race to accumulate bitcoins is also possible in the future, but I don't think it will happen in the near future and probably far away.

[Baki202]

‎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.

Many countries have begun to consider Bitcoin as a reserve asset. Although not universally accepted, Bitcoin is beginning to gain a place as a reserve asset, similar to gold for many countries.
Regardless of whether Bitcoin is used or not, it is now being considered a superior asset, and many countries may already be using it as a strategic reserve.
It doesn't matter if Bitcoin isn't seen as a legal financial instrument, and businesses and consumers use it daily, as many countries only allow it as an investment asset.

The most important part is not just seeing it as an instrument like a regular currency but how bitcoin can maintain its value in the long term so that its strength becomes the basis for strategic reserves.

I love how a lot of countries are already considering it as their reserve currency, like China and the USA, and since they are always in competition with other, if they continue like like this, it will boost the global recognition, and this was an asset that was condemned and now they are trying to use it as a reserve instead of gold or they might consider using both gold and bitcoin. and it has gained people's trust for the government to be considering using it as an asset, and if they should even legalize it, then it's going to be taxed, and since there are business owners that accept it, it shows that they have monetized it in their own way. I don't think I've seen it as a currency because, to me, it is better to invest in Bitcoin than to spend it as currency.

[tottong]

I love how a lot of countries are already considering it as their reserve currency, like China and the USA, and since they are always in competition with other, if they continue like like this, it will boost the global recognition, and this was an asset that was condemned and now they are trying to use it as a reserve instead of gold or they might consider using both gold and bitcoin. and it has gained people's trust for the government to be considering using it as an asset, and if they should even legalize it, then it's going to be taxed, and since there are business owners that accept it, it shows that they have monetized it in their own way. I don't think I've seen it as a currency because, to me, it is better to invest in Bitcoin than to spend it as currency.

Who condemns and why are these things viewed only from a relative perspective? Public confidence regarding adoption isn't entirely influenced by these two countries, and China has even tried to oppose Bitcoin, preferring gold as its strategic reserve.
Speaking of taxes, perhaps the government currently collects taxes from exchanges that obtain operating permits, and this is nothing more than the government's stance on indirect taxation.
Many countries are now considering Bitcoin as a strategic reserve asset, and this could be a good start for its growth.

I don't really care whether Bitcoin is implemented as a currency, as we know investing can be far more profitable than spending something using it.
There are also some purchases that accept Bitcoin payments, but they aren't yet widespread due to their limited scope.

[Iranus]

Right now so many countries are stockpiling on gold and adding to their gold reserves. Could it possibly be bitcoin in the future? Yes, possibly, but it would take a lot of time. Bitcoin is still very volatile and many institutions are yet to accept it because of that. We read stories of lawmakers in certain nations proposing the idea of the nation setting up their own bitcoin reserve, but nothing concrete yet and the bill is hardly successful.

That said, the idea of bitcoin being a global reserve asset will not make it more attractive than it already is, and many bitcoiners do not even like the idea of big institutions stockpiling on bitcoin. What i am saying is that it is not something that must happen for bitcoin to be much more successful.

Gold has been a reserve asset for hundreds of years and countries have only increased their holdings in recent years as global uncertainty has increased.

Theoretically, bitcoin is the most gold-like asset so it wouldn't be wrong to say that it has the potential to become the world's global asset in the future. But in reality, bitcoin is still too young. Bitcoin is only 16 years old, its market cap is only 2 trillion (significantly smaller than a US tech company), it is highly volatile and can lose more than 30-50%/year...Indeed, it took a long time for bitcoin to be recognized as a reserve asset.

[shinratensei_]

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.

The fate is set in stone with how it's going right now, it will be a global reserve but it gonna takes time.
Just wait for the development and we might see bitcoin being adopted for reserve by 2030 from my optimistic personal forecast.

[Danica22]

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.

The fate is set in stone with how it's going right now, it will be a global reserve but it gonna takes time.
Just wait for the development and we might see bitcoin being adopted for reserve by 2030 from my optimistic personal forecast.

Is that really good news? Because under the US federal constitution, he has virtually no authority to decide about the nation's reserves. Everything regarding national reserves is decided by Congress and the Federal Reserve. But as we can see, aside from Trump, hardly anyone mentions Bitcoin in the US anymore. The Federal Reserve has never even mentioned the idea.

I'm not saying that bitcoin won't have a chance to become a strategic reserve, but things will become clearer and more hopeful when the Fed or other major central banks discuss this issue. The statements or ideas of Trump, or any politician, are meaningless and not worth believing in. Because they have no authority and very little power to interfere in such matters.

[fillippone]

Even a small partial substitution of gold (5-10%) could significantly boost its price.

I recently read a report claiming that a rotation of only 2% of gold reserves into bitcoin could propel the price to 160K.
This is exactly why CB didn't buy Bitcoin, actually.
They cannot afford to raise the price so much when buying.
Als,o this is going to have huge implications from a BSR perspective.

[Abiky]

Gold is also volatile but not dumped like bitcoin, or manipulated as often as bitcoin.
Gold has become a globally recognized and reserve asset as it has proven its worth to the world through world wars, pandemics and economic recessions. It took thousands of years for gold to prove its worth and be recognized by humans. It is not by chance that it is considered the best safe haven. Has Bitcoin ever experienced anything similar? No, Bitcoin has never experienced any of those things. Bitcoin will not become a safe haven just because it has some of the same characteristics as gold.

The prospect of banks and governments joining the race to accumulate bitcoins is also possible in the future, but I don't think it will happen in the near future and probably far away.

Bitcoin did experience the economic uncertainty caused by the COVID-19 pandemic and foreign wars. It has performed remarkably well compared to other assets. Back then, Bitcoin was worth five figures. But now, it's worth six figures. Volatility is still an issue, but I guess that's more of a feature than a bug. Traders, whales, and big institutions are taking advantage of ups and downs to make a lot of money. You certainly can't do this with Gold. At least, in the short-term.

Fortunately, governments are recognizing Bitcoin's benefits as they plan to add it to their balance sheets (reserves). I have a feeling "hyperbitcoinization" will become a reality soon. Would you imagine the whole world using BTC as its Global Reserve Currency? It would be mind-blowing. We'll see what happens in the long run.

[Danica22]

Gold is also volatile but not dumped like bitcoin, or manipulated as often as bitcoin.
Gold has become a globally recognized and reserve asset as it has proven its worth to the world through world wars, pandemics and economic recessions. It took thousands of years for gold to prove its worth and be recognized by humans. It is not by chance that it is considered the best safe haven. Has Bitcoin ever experienced anything similar? No, Bitcoin has never experienced any of those things. Bitcoin will not become a safe haven just because it has some of the same characteristics as gold.

The prospect of banks and governments joining the race to accumulate bitcoins is also possible in the future, but I don't think it will happen in the near future and probably far away.

Bitcoin did experience the economic uncertainty caused by the COVID-19 pandemic and foreign wars. It has performed remarkably well compared to other assets. Back then, Bitcoin was worth five figures. But now, it's worth six figures. Volatility is still an issue, but I guess that's more of a feature than a bug. Traders, whales, and big institutions are taking advantage of ups and downs to make a lot of money. You certainly can't do this with Gold. At least, in the short-term.

Fortunately, governments are recognizing Bitcoin's benefits as they plan to add it to their balance sheets (reserves). I have a feeling "hyperbitcoinization" will become a reality soon. Would you imagine the whole world using BTC as its Global Reserve Currency? It would be mind-blowing. We'll see what happens in the long run.

Bitcoin has been dumped during covid as well as during the war between Russia and Ukraine.
Bitcoin fell from $11k to $4k when covid hit the economy, and only really rose when the government decided to pump money. Likewise, it was also dumped during the war between Russia and Ukraine, and only recovered as it gradually adapted to things. Meanwhile, gold prices always increase in such situations.

With the price of bitcoin increasing over time, this only shows it is a store of value, but still not a safe haven like gold. These are two different concepts.


Which countries are planning to add bitcoin to their national reserves?

I'm not saying it won't happen, bitcoin won't become a global reserve asset but like I said, that's a long way off.

[Emitdama]

Bitcoin has been dumped during covid as well as during the war between Russia and Ukraine.
Bitcoin fell from $11k to $4k when covid hit the economy, and only really rose when the government decided to pump money. Likewise, it was also dumped during the war between Russia and Ukraine, and only recovered as it gradually adapted to things. Meanwhile, gold prices always increase in such situations.

With the price of bitcoin increasing over time, this only shows it is a store of value, but still not a safe haven like gold. These are two different concepts.


Which countries are planning to add bitcoin to their national reserves?

I'm not saying it won't happen, bitcoin won't become a global reserve asset but like I said, that's a long way off.

Bitcoin will always have a bear period, that is not really that important. Why? Because even though it has bear periods, that bear period is always followed by a bull period. The fun thing of being a veteran here is watching people going "will it ever recover??" and fear, when you know it will.

It happened in 2018 when it started to crash and people got worried and thought it may never recover, I said it will, it always does, and it did, in 2021 it peaked and in 202 it crashed, so people said the same thing, I said it will recover, and it did, it peaked this year, and now we are going to go bear again, soon too, we will see it crash. However, don't be worried, after we crash soon, we are going to also recover slowly in a few years and have a bull again.

[Danica22]

Bitcoin has been dumped during covid as well as during the war between Russia and Ukraine.
Bitcoin fell from $11k to $4k when covid hit the economy, and only really rose when the government decided to pump money. Likewise, it was also dumped during the war between Russia and Ukraine, and only recovered as it gradually adapted to things. Meanwhile, gold prices always increase in such situations.

With the price of bitcoin increasing over time, this only shows it is a store of value, but still not a safe haven like gold. These are two different concepts.


Which countries are planning to add bitcoin to their national reserves?

I'm not saying it won't happen, bitcoin won't become a global reserve asset but like I said, that's a long way off.

Bitcoin will always have a bear period, that is not really that important. Why? Because even though it has bear periods, that bear period is always followed by a bull period. The fun thing of being a veteran here is watching people going "will it ever recover??" and fear, when you know it will.

It happened in 2018 when it started to crash and people got worried and thought it may never recover, I said it will, it always does, and it did, in 2021 it peaked and in 202 it crashed, so people said the same thing, I said it will recover, and it did, it peaked this year, and now we are going to go bear again, soon too, we will see it crash. However, don't be worried, after we crash soon, we are going to also recover slowly in a few years and have a bull again.

I know, but that’s not what we’re arguing about. What we're talking about is whether bitcoin has the potential to become a global reserve asset.

And you know, it keeps getting dumped by market cycles and negative news, and recovers again over time. That makes it unable to become a global reserve asset like gold, instead, it is just a store of value as I said.
A safe haven asset should not only increase in price over time but also be stable and even increase in price during economic turmoil, but what bitcoin has shown over the years is the opposite. It still gets dumped every time the economy turns unstable. So it is still considered a speculative asset and that means its path to becoming a global reserve asset is still quite far.

[Abiky]

Bitcoin has been dumped during covid as well as during the war between Russia and Ukraine.
Bitcoin fell from $11k to $4k when covid hit the economy, and only really rose when the government decided to pump money. Likewise, it was also dumped during the war between Russia and Ukraine, and only recovered as it gradually adapted to things. Meanwhile, gold prices always increase in such situations.

With the price of bitcoin increasing over time, this only shows it is a store of value, but still not a safe haven like gold. These are two different concepts.


Which countries are planning to add bitcoin to their national reserves?

I'm not saying it won't happen, bitcoin won't become a global reserve asset but like I said, that's a long way off.

Gold has been trusted for centuries, so it's normal to see it rise in price immediately after a crisis. Short-term speaking, Gold fares better than Bitcoin. But if we're talking about building long-term wealth, nothing can beat Bitcoin in this regard. If you compare the COVID years versus today, you will notice that Bitcoin has increased in price by a large margin. The government spending, the spot ETFs, etc. have made BTC more valuable than before. Gold recently increased in price reaching an ATH of over $4.2k. But the gains are not as much as Bitcoin within the same amount of time.

Governments are slowly recognizing Bitcoin as the "next Digital Gold", so it won't be long before they add it to their reserves. Right now, China, the US, Russia, and other countries are buying Gold. But in the future, they will buy and hold Bitcoin in-mass. We're still early in the game. Who knows how high BTC will go as a result of increased mainstream adoption?

[Yaunfitda]

Bitcoin has been dumped during covid as well as during the war between Russia and Ukraine.
Bitcoin fell from $11k to $4k when covid hit the economy, and only really rose when the government decided to pump money. Likewise, it was also dumped during the war between Russia and Ukraine, and only recovered as it gradually adapted to things. Meanwhile, gold prices always increase in such situations.

With the price of bitcoin increasing over time, this only shows it is a store of value, but still not a safe haven like gold. These are two different concepts.


Which countries are planning to add bitcoin to their national reserves?

I'm not saying it won't happen, bitcoin won't become a global reserve asset but like I said, that's a long way off.

Gold has been trusted for centuries, so it's normal to see it rise in price immediately after a crisis. Short-term speaking, Gold fares better than Bitcoin. But if we're talking about building long-term wealth, nothing can beat Bitcoin in this regard. If you compare the COVID years versus today, you will notice that Bitcoin has increased in price by a large margin. The government spending, the spot ETFs, etc. have made BTC more valuable than before. Gold recently increased in price reaching an ATH of over $4.2k. But the gains are not as much as Bitcoin within the same amount of time.

Governments are slowly recognizing Bitcoin as the "next Digital Gold", so it won't be long before they add it to their reserves. Right now, China, the US, Russia, and other countries are buying Gold. But in the future, they will buy and hold Bitcoin in-mass. We're still early in the game. Who knows how high BTC will go as a result of increased mainstream adoption?

It's how the government really look at Bitcoin and Gold. And as what we have seen after WWII, gold really took off as it was the means for reconstruction. Government around the world uses it as their barter or trade and so it will continue to be the best or number 1 asset. And so far the price continue to go up as I have a friend who called me up saying that indeed one jewel that I pawn to them, it's a Saudi Gold by the ways and says that If I wanted to, they can add another $200.00 on my original pawn price. But I decline saying that I'm going to get it in December. Anyway, as for Bitcoin, yes, there has been a race between two super powers, US and China. And we have even seen news that China is accusing US of hacking in one of the biggest crypto heist. So this government are taking it very seriously to get and stack sats and make it a reserve just in case.

[tygeade]

Gold has been trusted for centuries, so it's normal to see it rise in price immediately after a crisis. Short-term speaking, Gold fares better than Bitcoin. But if we're talking about building long-term wealth, nothing can beat Bitcoin in this regard. If you compare the COVID years versus today, you will notice that Bitcoin has increased in price by a large margin. The government spending, the spot ETFs, etc. have made BTC more valuable than before. Gold recently increased in price reaching an ATH of over $4.2k. But the gains are not as much as Bitcoin within the same amount of time.

Governments are slowly recognizing Bitcoin as the "next Digital Gold", so it won't be long before they add it to their reserves. Right now, China, the US, Russia, and other countries are buying Gold. But in the future, they will buy and hold Bitcoin in-mass. We're still early in the game. Who knows how high BTC will go as a result of increased mainstream adoption?

While it is true that gold is trusted, it is getting way more trust these days considering how fiat is getting more and more screwed. So I agree that bitcoin is better on long term, 20 years from now bitcoin will be higher than gold, and would have gone up much more too, and that is why I invest into bitcoin as much as I can. Not too much, debt makes me not be able to invest too much, but until then, I am still doing whatever I can.

Gold is not bad, I am not saying investing into gold would make you lose or anything, it's still a decent investment, I just rather do that with bitcoin than gold. With whatever I do, I rather just do it without that much of a problem, I just rather do this with whatever I can do.

[silpersurfer]

Of course it can, Bitcoin can be used as a global reserve, and I think it will happen, but we don't know when exactly. Today, blockchain and digital assets are being studied, so there is a high possibility that Bitcoin will become one of the best global assets to hold in the long term.

Before all that happens, starting today, we are collecting Bitcoin for an even brighter future, with Bitcoin becoming the foundation of the global economy in the next phase. Your doubt is your loss.

[Danica22]

Anyway, as for Bitcoin, yes, there has been a race between two super powers, US and China. And we have even seen news that China is accusing US of hacking in one of the biggest crypto heist. So this government are taking it very seriously to get and stack sats and make it a reserve just in case.

What race is taking place between the two superpowers China and the United States?

China has yet to show interest and buying any bitcoin. Meanwhile, the US continues to blatantly confiscate other people's bitcoins, they dare not spend money to buy bitcoins. That just shows they are betting on it but don't have full faith in bitcoin. So instead of buying them, they find ways to get them for free by confiscating bitcoins from other people.

The US is plundering other countries and China's condemnation is not entirely wrong. Even if it's not bitcoin, but gold or any other asset. China will also condemn and oppose it because it is an abuse of power, not because it is bitcoin.