Will Bitcoin Become The Reserve Currency Of The World?
There’s no denying the future value of bitcoin is an intriguing topic of debate. Also, there have been various predictions about this notoriously volatile cryptocurrency.
Some say it would be a commodity and security while some people believe it would become the reserve currency of the world.
In fact, Max Keiser, a well-known American Broadcaster has also predicted that Bitcoin will dethrone the USD as the world’s reserve currency. He also added that altcoins’ importance would continue to increase as traditional currencies decrease.
Still, could it become the reserve currency of the world?
It sounds unbelievable, even ludicrous. But, not all these predictions could be wrong. However, does this whole idea have a solid ground in reality? So, let’s find more about bitcoins and why it could be a global currency.
Why Could Bitcoin Be The Reserve Currency Of The World?
For a currency to be defined as the world reserve currency, it should:
- Be stable
- Have liquidity
- Be used globally
In its current state, Bitcoin is definitely all of these things.
Despite the 2018’s bearish trend, Bitcoin is likely to be a big beneficiary in the de-globalized world.
Bypassing government regulation, accessible via a smartphone and dependent on a bank account, this cryptocurrency is 100% portable, secure, programmable and transactable. It also offers one of the most viable alternatives to the USD in countries suffering from an inflationary monetary policy.
Well, Bitcoin is already on the way of becoming a global reserve currency as the sovereign nations of Paraguay and Argentina use bitcoin to settle transactions. According to this Cointelegraph’s report, Paraguay has bought pesticides and fumigation products for $7,100 from Argentina and used bitcoins to pay the deal.
This being said, the current price of bitcoin currency $5,259.95 is the only one of the three variables to consider, the other factors being hash-rate and difficulty adjustment. These variables are in constant flux to make sure that the 10-minute emission rate remains constant.
According to Keiser, this gives bitcoin the most ‘rock solid’ monetary policy of any central bank as it produces a new block roughly every 10 minutes with 21 million total coins.
Moving further, bitcoin is fully decentralized, and no one controls it. All the transactions are transparent on the blockchain.
Moreover, here are some important facts that also add to bitcoin’s growth.
Ø It has a market capitalization of $93,148,090,975.
Ø Currently, bitcoin has 30 million wallet addresses that continue to grow.
Ø This cryptocurrency operates on 24/7 global markets.
Ø Bitcoin allows the transfer of a huge sum of money for near-zero fees.
Besides, year after year bitcoin global currency continues to grow, expands its infrastructure and beats people’s expectations.
Summing Up
With a current trading price of 1 bitcoin hovering around $5000, the cryptocurrency has started to get institutional support plus promotion by famous bitcoin traders who have been debating about bitcoin’s superiority over other coins.
With all these factors, bitcoin is surely on its way of becoming the reserve currency of the world.
But, do you agree that bitcoin will become the reserve currency of the world? Let us know your thoughts in the comment section below.
