As much as I like bitcoin but it is not yet ready for mass adoption, the price of it is too unreliable for such a large long term commitment like what BRICS countries are making. Imagine if you buy a million barrels of oil (what oil tankers usually carry) worth $80 million in bitcoin and the price drops by 10% which is a normal thing in bitcoin. That is $8 million loss. That's not favorable.
However a centralized currency created and controlled by them is a lot more reliable because they dictate its value (exchange rate) so it can be kept fixed.
At this point bitcoin is good for small size trades and as a small portion of the reserved assets of the country.
However a centralized currency created and controlled by them is a lot more reliable because they dictate its value (exchange rate) so it can be kept fixed.
At this point bitcoin is good for small size trades and as a small portion of the reserved assets of the country.
Sadly, that's the hard truth. BTC is extremely-volatile, which means you can either win big or lose it all in an instant. BRICS countries need something stable that would help them move money across borders with ease. The only logical option would be to make their own currency that would be under their complete control. I'd imagine the new currency would be digital, making use of Blockchain tech for cross-border payments. And backing it with Gold, would make sure the currency will retain its purchasing power no matter what. Similar to what the US did in the old days (except Blockchain tech didn't exist back then).
Whenever BRICS' efforts to displace the USD as the world's reserve currency will become a success or a failure, it's yet to be seen. It's going to take years, if not, decades before this happens. Either way, BTC will keep soaring towards new heights thanks to its decentralized and censorship-resistant design. Just my opinion
