Bitcoin is a technology that makes our life easier. It does not melt in the face of inflation like fiat currencies. It frees us from the bondage of banks, as it allows us to transfer money without the need for third parties. It has great features.
- However, despite being a new technology, it has very high energy consumption. However, everyone would like it to consume less energy.
- Also, it has been known and traded for years but still has very high volatility. With this appearance, it scares new investors. Because everyone expected it to have a more balanced price performance.
- World history is full of wars. Perhaps we are living through one of the best periods in history. But because of us homosapiens, our world is very prone to chaos. Coins that do not have an armed force behind them, such as Bitcoin, may be a little unlucky in this regard.
I think these three problems may not be solved and these three problems may prevent bitcoin from being a reserve currency.
What do you think about the subject? Can you share some enlightening information for me?
Nope. Problem is that our world is now way past the time of reserve currency. These days no country wants to get into this mess of having a reserve currency because they want to print as much money as possible without any restraint. The reserve currency puts that restraint. So it's not the problem with bitcoin why it can't be a reserve currency but the problem with the currency system itself which will stop bitcoin from becoming so. It cannot even be a global trade currency due to the exchange costs involved to fiat and it's volatility.