Post
Topic
Board Economics
Merits 2 from 1 user
Re: Could Bitcoin one day become the global reserve currency?
by
Faisal2202
on 11/03/2023, 04:43:52 UTC
⭐ Merited by fillippone (2)
What do you think about the subject? Can you share some enlightening information for me?
No doubt bitcoin has long list of pros but where is pros there is cons, like in your first statement, last year btc failed to resist against inflation, no doubts it frees us from going to bank ( but does it really happening) like we are all have no or less options to deposit and withdraw btc/usd pair without banks. Ahh, if you work for someone in exchange of btc that is another discussion.
Countries are run by governments and in each country there are more than one governments each with there own agendas and secrets and they do not want it to be seen by public and hide it. But if bitcoin becomes the global reserve ( currency to store value of money for country) then this will not become private anymore. anyone in the world can check the total reserves and accounts limited details that is holding the reserves of country. countries has many expenditures like (agencies) and that is something on which no one wants to compromise. so overall, nothing is safe in digital world until you or someone within the system do something stupid.
Now coming to your queries.
1. Every sector in the world like industry, production, consumption transportation etc consume high amount of energy, And only literate people care about consuming less energy, Bitcoin no doubt is using high energy for mining but as you may be aware mining of btc is near to an end which will eliminate your first query. And further many platforms are introducing green carbon slogan to eliminate the impact of high energy consumption or at least reduce it.
2. well in case of volatility, some people admire it and some not. because this volatility is the fundamental pillar of crypto from which investors and hodler can make passive income and can become millionaire over time. No doubt it scares traditional fiat users but ones they get familiar with the value of this volatility then they will also admire it. secondly, using btc for Reserves, we can analysis el-salvador country how much it will improve and how it will rise along the rise of bitcoin by riding on the rocket fueled with volatility.
3.Wars, no doubt has great impact on devaluation of currencies. wars not only effect btc but also caused devaluation of many currencies like, in world war 1 Germany printed more notes than reserves thus this causes inflation and devaluation of currency, Syrian currency also devalued in the war as the Vietnam currency devalued in war well there are many other examples. are there too. So overall, war is permanent and its impact is too. But btc has the potential to bear it. but idk maybe it has the potential to bear total electricity blackout in the world when aliens will come. hahah.

overall, btc has outperformed in the previous fuds, wars, pandemic etc and i think above mentioned three reasons might not become a hurdle for it to become reserve entity but governments like the developed one are never going to use it for reserves. only the developing and near to bankrupt countries might touch this plan in near future.