Post
Topic
Board Economics
Re: Bitcoin the main currency in the world?
by
exstasie
on 08/08/2020, 09:15:04 UTC
Is there's a time that bitcoin will be the next main currency in the world comes in your mind?. Is there any possibility that will happen?

The possibility is remote in my opinion.

Bitcoin's extremely limited supply lends itself to hoarding. https://en.wikipedia.org/wiki/Gresham's_law

If it succeeds in terms of mass adoption and institutional adoption, there will be very strong demand for BTC for long term wealth storage, but it will be too expensive to use as an everyday means of exchange or high volume settlement mechanism. I don't see it becoming a dominant reserve currency either for the same reasons.

I don't mean to say nobody will be transacting using BTC or Layer 2 protocols. I just think it's unrealistic to think BTC will ever have monetary velocity anywhere near the USD.