Quote from: Aliceooo78 on August 14, 2021, 07:16:43 AM

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Since the U.S. dollar is linked to gold and the currencies of other countries are linked to the U.S. dollar, although the U.S. dollar has achieved the status of the international core currency, in order to develop international trade, countries must use the U.S. dollar as a settlement and reserve currency. This will cause the currency to flow out of the United States. Continuous precipitation overseas will create a long-term trade deficit for the United States; and the prerequisite for the U.S. dollar as the core of the international currency is to maintain the stability and strength of the U.S. dollar, which in turn requires the United States to be a country with a long-term trade surplus. These two requirements contradict each other and are therefore a paradox. "This internal contradiction is called the "Triffin Dilemma."

This requires the U.S. to reduce its trade deficit and even its trade surplus to maintain the stability and strength of the U.S. dollar. Only in this way can the world's confidence in U.S. dollar convertible gold be maintained.
So the problem of whether to control the trade deficit arises.
The Triffin Dilemma shows that the currency of any sovereign country cannot be used as an international solvency monetary system.

The Triffin problem is not complicated. The main contradiction is the transformation of the United States from the largest creditor nation during World War II to the largest debtor nation.

The Triffin Dilemma shows that the currency of any sovereign country cannot be used as an international solvency monetary system.

Bitcoin relies on the underlying technology of the blockchain, immutable, irreversible, decentralized distributed accounting and other advantages, plus the characteristics of Bitcoin.

1. Stable value

2. Rule-based issuance

3. Controllable supply schedule

As Bitcoin gains more users, more people learn about cryptocurrency, use cryptocurrency to trade, and bridge the gulf of thinking of currency as an effective means of payment. Bitcoin is getting closer and closer to its status as a world reserve tool. . This tool has great potential and can really solve the long-standing Triffin dilemma. It is only a matter of time. This is the basic function and meaning of Bitcoin.

Yes, the Triffin Dilemma tells us from an economic point of view that the currency of a sovereign country cannot serve as the world's currency. Sovereign currencies cannot balance the inherent contradictions between intra-country trade and world trade. This system is fundamentally unreasonable and will eventually collapse. Bitcoin has given humans a better choice. The non-sovereign digital currency based on mathematical algorithms is used as the world currency to establish a world currency system centered on Bitcoin. This is the best choice for building a new world currency system in the future.