Re: What's Next For Bitcoin Amid Tariffs and Recession Fears?
We all have a very poor understanding of what is really happening with the modern financial system.
For example, we do not know how the introduction of central bank digital currencies will affect Bitcoin. We do not even know whether the US has finally abandoned the idea of implementing an American digital dollar or not. We do not know whether Donald Trump's reforms will have a positive or negative effect on the US economy (or perhaps they will destroy it altogether).
For example, we do not know how the introduction of central bank digital currencies will affect Bitcoin. We do not even know whether the US has finally abandoned the idea of implementing an American digital dollar or not. We do not know whether Donald Trump's reforms will have a positive or negative effect on the US economy (or perhaps they will destroy it altogether).
CBDC?
That topic, in its current form is currently dead.
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What will happen to the US dollar and US government bonds? Will the US dollar be able to maintain the status of the world reserve currency or not?
I believe that because of the U.S. current economic and geo-political policies, they’re risking the U.S. Dollar’s status as THE main world reserve currency. Because the current administration wants to bring manufacturing back in their country and be “an exporter” of U.S. made goods, then like China, the U.S. probably needs to lower the value of their currency to be more competitive.
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Will the central banks of all countries include the first cryptocurrency in their gold and foreign exchange reserves or not?
They probably should?
¯\_(ツ)_/¯
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Will the money supply in the world increase or not?
Zoom out. YES it will.
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Will we see low central bank interest rates (refinancing rates) or will they not be reduced?
Rate cuts + Q.E. will happen if the unemployment rate starts surging.
In my opinion, centralized stablecoins in their evolutionary development can turn into an analogue of CBDC.
I would probably prefer THAT than a CBDC directly controlled, and minted by a government entity. Because with stablecoins minted and distributed by a government entity, it's the denationalization of money as envisioned by F.A. Hayek WHICH could be better.
F.A. Hayek said - Government monopoly over money mainly leads to instability because of incompetence, and mismanagement. The solution is to let "private currencies", like business-entity issued stablecoins, to compete, to encourage stability and innovation.