Will De-Dollarization Strengthen Bitcoin's Position as a Neutral Global Asset.

[Faisal2202]

‎However, there's still a problem because Bitcoin price is still highly volatile in nature, no clear government regulations concerning Bitcoin in different countries and Gold and CBDCs are still competing with Bitcoin.
‎
‎what are your thoughts:
1. ‎do you think de-dollarization will make more people and country adopt Bitcoin?
2. ‎what do you think is the biggest thing stopping Bitcoin from playing a bigger role in the global economy?

Dedollarization does not mean people are going to choose BTC as their first choice. Have you not seen what BRICS countries were doing? They chose their local currencies for trading. They did not choose BTC. But dedollarization is not happening.

In fact, the dollar's demand has increased way higher than we can imagine. The debt ceilings and all those panicking calls that the US is suffering are just cover up stories. They are doing good. The citizens will definitely suffer, and the countries which have dollars in their reserves will also suffer when their local currency loses value.

But the US dollar will thrive. M2 and M3 supply is increasing, world debt is in hundreds of trillions of dollars, the inflation is still going up, and believe me, BTC is not the solution to all that. A full stop at the US dollar is, but we definitely need alternatives, but BTC can't be it.

[Fortify]

‎However, there's still a problem because Bitcoin price is still highly volatile in nature, no clear government regulations concerning Bitcoin in different countries and Gold and CBDCs are still competing with Bitcoin.
‎
‎what are your thoughts:
1. ‎do you think de-dollarization will make more people and country adopt Bitcoin?
2. ‎what do you think is the biggest thing stopping Bitcoin from playing a bigger role in the global economy?

Dedollarization does not mean people are going to choose BTC as their first choice. Have you not seen what BRICS countries were doing? They chose their local currencies for trading. They did not choose BTC. But dedollarization is not happening.

In fact, the dollar's demand has increased way higher than we can imagine. The debt ceilings and all those panicking calls that the US is suffering are just cover up stories. They are doing good. The citizens will definitely suffer, and the countries which have dollars in their reserves will also suffer when their local currency loses value.

But the US dollar will thrive. M2 and M3 supply is increasing, world debt is in hundreds of trillions of dollars, the inflation is still going up, and believe me, BTC is not the solution to all that. A full stop at the US dollar is, but we definitely need alternatives, but BTC can't be it.

Exactly, bitcoin has a place in global trade but frankly people need to stop thinking of it as a day to day low-level transaction currency. It simply does not have the network processing power to manage all the transactions even a smallish country needs to conduct business every day. The network would be flooded and grind to a halt as we've seen in previous cases. Bitcoin can serve a role for handling and transferring higher denomination amounts - like salaries or big item payments. It can do so while avoiding the extortionate cross border fees that some banks try to impose on people, but high fees in this area is driven by poor financial regulation and the greed of companies that the government does not stamp out. It seems like USDT and similar currencies launched by central banks are much more likely to fill this need in future, plus get the necessary government backing.

[asriloni]

1. ‎do you think de-dollarization will make more people and country adopt Bitcoin?

De-dollarization is just a politic, and it gives no impact to the bitcoin. To assume de-dolarization gives will push people to buy bitcoin just BS. The fact that most of bitcoin volume is still concentrated in USD pair. So de-dolarization is just a myth.

2. ‎what do you think is the biggest thing stopping Bitcoin from playing a bigger role in the global economy?

Government and regulation.

[ndutndut]

‎what are your thoughts:
1. ‎do you think de-dollarization will make more people and country adopt Bitcoin?
2. ‎what do you think is the biggest thing stopping Bitcoin from playing a bigger role in the global economy?

The dollar is indeed currently very dominant in international trade which is why many de-dollarization actions have emerged. The most apparent resistance is the formation of BRICS, although so far it hasn't seemed successful because many international trade transactions still use the dollar. So, we can conclude that most of the de-dollarization efforts today are more about geopolitics and a country's power rather than a pro-Bitcoin agenda. I mean, indirectly maybe Bitcoin could be one of the alternatives, but not the main goal. In fact, if I'm not mistaken when Iran requested payment for passage through the Strait of Hormuz in crypto, it was briefly implemented but eventually went back to using fiat.

The reason bitcoin probably can't play a major role in global transactions might be because of its decentralized nature, so countries don’t have the ability to control it. We also know that every country tends to reject assets that are outside their control, let alone use them for global economic trade.

[r_victory]

I don't think dedollarization will impact the adoption of Bitcoin; perhaps governments will opt for another fiat currency. I see companies that trade with China trading in the Chinese currency, for example. Some businesspeople prefer to do it this way, and I believe that decoupling global trade from the dollar could benefit other local currencies, since it would be more practical to trade directly with them.

[wiss19]

1. ‎do you think de-dollarization will make more people and country adopt Bitcoin?

De-dollarization is just a politic, and it gives no impact to the bitcoin. To assume de-dolarization gives will push people to buy bitcoin just BS. The fact that most of bitcoin volume is still concentrated in USD pair. So de-dolarization is just a myth.

2. ‎what do you think is the biggest thing stopping Bitcoin from playing a bigger role in the global economy?

Government and regulation.

It is not "completely" nonsense. It does make sense that people would invest in these things, because we are talking about something that would be alternative. Not that we are seeing everyone get out of dollars completely, of course, and not the ones who do; all end up with bitcoin. So that means, even if dollarisation happens, bitcoin will not go up that much. However, it is also not a bad thing either; even if a few billion dollars of it goes our way, that is not a bad thing; it is a benefit to us.

So while this may not be something too large to celebrate at all, it is also not something that we should not care about either, and we should be happy that it exists. I am not saying make a big deal out of it, but do not consider it as nothing either. We need to realise that every small bit helps, and in this case it is a small bit for sure, but it is also nothing either, and we can be just joyful for the smaller things in life like this as well.

[#CapsLOck]

‎However, there's still a problem because Bitcoin price is still highly volatile in nature, no clear government regulations concerning Bitcoin in different countries and Gold and CBDCs are still competing with Bitcoin.
‎
‎what are your thoughts:
1. ‎do you think de-dollarization will make more people and country adopt Bitcoin?
2. ‎what do you think is the biggest thing stopping Bitcoin from playing a bigger role in the global economy?

Dedollarization does not mean people are going to choose BTC as their first choice. Have you not seen what BRICS countries were doing? They chose their local currencies for trading. They did not choose BTC. But dedollarization is not happening.

In fact, the dollar's demand has increased way higher than we can imagine. The debt ceilings and all those panicking calls that the US is suffering are just cover up stories. They are doing good. The citizens will definitely suffer, and the countries which have dollars in their reserves will also suffer when their local currency loses value.

But the US dollar will thrive. M2 and M3 supply is increasing, world debt is in hundreds of trillions of dollars, the inflation is still going up, and believe me, BTC is not the solution to all that. A full stop at the US dollar is, but we definitely need alternatives, but BTC can't be it.

Exactly, bitcoin has a place in global trade but frankly people need to stop thinking of it as a day to day low-level transaction currency. It simply does not have the network processing power to manage all the transactions even a smallish country needs to conduct business every day. The network would be flooded and grind to a halt as we've seen in previous cases. Bitcoin can serve a role for handling and transferring higher denomination amounts - like salaries or big item payments. It can do so while avoiding the extortionate cross border fees that some banks try to impose on people, but high fees in this area is driven by poor financial regulation and the greed of companies that the government does not stamp out. It seems like USDT and similar currencies launched by central banks are much more likely to fill this need in future, plus get the necessary government backing.

that de-dollarization doesn't necessarily mean that countries will adopt Bitcoin. That's not to say that the BRICS countries that have opted to reduce dollar dependency and begin using local currencies are taking the plunge into BTC, though. That said, Bitcoin may indirectly benefit, as it is neither tied to any one government and is a neutral asset. It has the major drawbacks of volatility, lack of clarity in regulations, scalability and not being widely used for regular payments. I don't think bitcoin is suitable for replacing national currencies or as a day to day payment system, I believe it's more realistic as a neutral asset and a settlement option for larger transfers.

[jostorres]

Actually, it’s not just a matter of de-dollarization; if this also happens to other currencies in other countries, I’m convinced that this, too, will lead to a decline in people’s trust in fiat currencies. So what I mean is, when confidence in fiat currencies declines, guess what will happen? In my opinion, everyone will look for alternatives to safeguard their assets. And for those who understand the importance of digital assets, they’ll choose Bitcoin as one of their options. Although I think gold will likely dominate the market, since it already has a proven track record of strength. But Bitcoin will certainly be positively impacted as well.

As for why Bitcoin is still held back from playing a larger role in the global economy, I think we all know the reasons: regulation and its highly volatile price. Additionally, right now, most people view Bitcoin more as an investment asset than as a medium of exchange. But as Bitcoin’s adoption continues to expand, I believe it will play a significant role in the global economy in the future, especially as more countries begin to adopt Bitcoin.

Mostly regards to de-dollarization because the reality is that other countries and their currencies are not global reserves like the USD is. I get that we do have some euro, and maybe some yuan too if you are Asian countries, but most nations only have dollar and nothing more in their reserves, which is not really that shocking. I personally think that the best way forward would be getting rid of that too.

No nation should have a treasury that helps another nation; we should have governments with zero fiat in their treasury. Treasury should be something that invests in gold, bonds, and many more stuff like that and used to make sure that the government helps the citizens and builds a future for them.

The fact that we have money is already stupid when we have this much debt; we should not have any treasury when we are paying this much debt. You may think that having a treasury makes a nation strong, but when you have this much debt, there is no reason why we should. Be like Norway; they end up doing a lot better because they paid off their interest and put everything else back into their country. You get to have free healthcare and education, and even being jobless for a while doesn't hurt you.

[WillyAp]

With around 17% of people using crypto, plus it includes the people dealing in stable coins.
It's a little too adventurous if not hilarious to believe crypto could possibly overtake even Gold.

If you after strengthen than you need to work on public relations, pool resources, publish papers where noŕmies (expression for mainstream) debate.
     

[Faisal2202]

that de-dollarization doesn't necessarily mean that countries will adopt Bitcoin. That's not to say that the BRICS countries that have opted to reduce dollar dependency and begin using local currencies are taking the plunge into BTC, though. That said, Bitcoin may indirectly benefit, as it is neither tied to any one government and is a neutral asset. It has the major drawbacks of volatility, lack of clarity in regulations, scalability and not being widely used for regular payments. I don't think bitcoin is suitable for replacing national currencies or as a day to day payment system, I believe it's more realistic as a neutral asset and a settlement option for larger transfers.

Fortify has explained it all very well already, and you definitely added good points, CapsLock.

Volatility is a drawback, but really not a major one, because let's say scalability is the issue here, but what I am going to say is going to contradict the utility of it for the countries who want to avoid dollars and use a currency or medium that nobody controls. I recently came to learn that Hal has said:

Hal Finney also answered that in 2010.

Actually there is a very good reason for Bitcoin-backed banks to exist, issuing their own digital cash currency, redeemable for bitcoins. Bitcoin itself cannot scale to have every single financial transaction in the world be broadcast to everyone and included in the block chain. There needs to be a secondary level of payment systems which is lighter weight and more efficient. Likewise, the time needed for Bitcoin transactions to finalize will be impractical for medium to large value purchases.

Bitcoin backed banks will solve these problems. They can work like banks did before nationalization of currency. Different banks can have different policies, some more aggressive, some more conservative. Some would be fractional reserve while others may be 100% Bitcoin backed. Interest rates may vary. Cash from some banks may trade at a discount to that from others.

George Selgin has worked out the theory of competitive free banking in detail, and he argues that such a system would be stable, inflation resistant and self-regulating.

I believe this will be the ultimate fate of Bitcoin, to be the "high-powered money" that serves as a reserve currency for banks that issue their own digital cash. Most Bitcoin transactions will occur between banks, to settle net transfers. Bitcoin transactions by private individuals will be as rare as... well, as Bitcoin based purchases are today.

If people move to 2nd layer solutions if the fee is too expensive, only big transfer between banks/ecchanges and other big players will happen on-chain.

So if Hal really means it, which is a possible and a good assumption at that time, then a central body will be using BTC as backup to create their own currency that won't move on the BTC blockchain. But this way, at least we won't have to suffer from the scalability issues. It can also be widely used for payments as well, but again, it contradicts the feature of freedom.

[STT]

Ironic thing is time proven gold is the only stable currency, its held values since the pyramids were being assembled.   That's a really long time to be able to look up the price and its still similar, we know most paper currencies the prices from even the 1990's are quite different to now due to drifting value and deterioration.

    BTC will likely gain but only alongside many alternatives to the dollar dominance thats stood since ww2 and USA was registering as 50% of  world trade I believe was the solid basis that ignited the Bretton Woods agreement at that time.  We've left over fifty years ago now, much like the pyramids are no longer used the outline remains but the idea  we kept the same system should not be the case though as a legacy clearly we inherited an overwhelming influence.

[RGBTC]

This de-dollarization movement is compelling certain nations to form trade alliances as they seek to strengthen the influence of their own currencies. They will not adopt Bitcoin as a replacement, given that the BTC/USD pair remains dominant in the global market (you know what I mean); however, Bitcoin I think works well for "de-sanction".

[asriloni]

It is not "completely" nonsense. It does make sense that people would invest in these things, because we are talking about something that would be alternative. Not that we are seeing everyone get out of dollars completely, of course, and not the ones who do; all end up with bitcoin. So that means, even if dollarisation happens, bitcoin will not go up that much. However, it is also not a bad thing either; even if a few billion dollars of it goes our way, that is not a bad thing; it is a benefit to us.

So while this may not be something too large to celebrate at all, it is also not something that we should not care about either, and we should be happy that it exists. I am not saying make a big deal out of it, but do not consider it as nothing either. We need to realise that every small bit helps, and in this case it is a small bit for sure, but it is also nothing either, and we can be just joyful for the smaller things in life like this as well.

Dude, back to the context please. Just stick to the fact that if de-dolarization means nothing for bitcoin. The fact that de-dolarization won't push people to go to the bitcoin for the daily transaction purpose because they have their own legal tender. However, these days people treated bitcoin more like a commodity asset instead of intermediary asset.

[DrBeer]

De-dollarization, at this point, is more about politics than economics. Remember BRICS, on which certain countries imposed "de-dollarization" narratives and made a big fuss about at every opportunity in recent years? Now tell me - where are these opponents of the dollar, and where is the "single BRICS currency"?
Bitcoin. Theoretically, it’s an interesting asset, and there are many theories and models surrounding it. But its key advantage is also its key disadvantage - decentralization. All governments and economies are centralized. Every government wants to CONTROL the economy and cash flows. Are you saying that China is ready to replace the yuan with Bitcoin? Not only China, but any other country would reject this. As a medium of value transfer in the global economy? The question is: how do you "revaluate" EVERYTHING in Bitcoin, which is prone to manipulation and volatility? Who guarantees its stability? And what should countries do if they don’t have Bitcoin in their national reserves? Buy it and devalue their own currency?
In short, the "Bitcoinization" of the economy raises more questions than it answers....