Originally Posted by Milwroad
Originally Posted by oldtrapper
Originally Posted by Milwroad
Originally Posted by oldtrapper
If Bitcoin becomes the world reserve currency, won't it become a self fulfilling phenomenon? That action would devalue all other fiat currencies, thus stabilizing Bitcoin and assuring its future use and value. What might major global sovereigns do to prevent that? What could they do?

It's hard for me to imagine any sovereign, especially China, being trusted to hold a world reserve crypto currency denominated in their fiat monetary units.


Bitcoin will not become the world's reserve currency. No government would allow a private citizen to create a reserve currency anymore than they would go back to a gold standard (as much as some want that). The Fed and other central banks are working on their own digital currency. I think we will have one in the next 10-20 years or so.



I am not sure how they could stop it. All governments are suspect and acceptance is everything. If countries start insisting on crypto payments, then they are in. And, the less fiat currencies are trusted the more likely that seems. It seems to me that world reserve currency favors one nation and it all has to do with confidence. All the other nations have a default reason to favor a neutral, non sovereign cryptocurrency reserve.


Maybe we are talking about different things (if so I apologize) but I do not think any government would want a currency outside of their control. It would make monetary policy impossible. Much like a gold standard. That said there are certainly issues with fiat currencies.In a sense bitcoin is the ultimate fiat currency. Backed by nothing at all.
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I am quite certain governments want control of their currencies, but one gets to be the reserve currency and that gives them a very real advantage. It seems to me all other governments would prefer Bitcoin over a currency that the reserve currency printers can manipulate. If other countries want to be paid in Bitcoin, how does anyone stop it? The gold standard no longer applies, so it seems a very real possibility that Bitcoin could become the international currency of choice.

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