Quote from: BIN-BIN on August 10, 2021, 10:50:38 AM

With the mainstream and institutional adoption of Bitcoin, the coast is becoming clearer to analyze bitcoin becoming the global reserve currency if the current trends continue till 2025 I see bitcoin rendering the present reserve system useless because Bitcoin will outperform another global reserve asset in terms of price and market cap and circulation reason being that.

Factors that will put Bitcoin over the U.S dollars as global reserves.

1. The major reason that will pave the way for bitcoin to become the global reserve asset is the fact that Bitcoin has a fixed calculating supply of 21 million Bitcoin which can not be added and this makes the currency immune to inflation.

Unlike the U. S dollars, the government can print additional currency notes at will, which makes it prompt to inflation, and has no calculating supply.

With the current global economic meltdown, which gave birth to a high inflation rate, the world trade union will not hesitate to replace U.S dollars with a currency that has a fixed supply and market dominance like Bitcoin in the future when the enabling environment is created.

WHAT ARE YOUR VIEWS ON THIS?

I don't really think this will happen. It is too ideal, to begin with.

I have a question. If you belong to the government, would you invest in something knowing that it is volatile? I think not. It has a low probability that the government would invest in something with a value that is highly volatile because the funds will be at a very big risk. When the market crashes, their funds will be compromised as well. Hence, why would they pick bitcoin to be a reserve asset?

In addition, the decentralized nature of bitcoin is non-negotiable for them. They can't control it because it is their nature in the first place. No matter how hard they try to regulate it, they can't totally erase the decentralized nature of bitcoin. They can't manipulate it and they can't just produce it and print it like what they usually do with fiat such as dollar whenever things go haywire. And they don't want that. The government loves to take control and take over almost everything, hence bitcoin and any cryptocurrency will be the last on their list if ever they will try to replace US dollars in global reserve.