π Is Bitcoin going to be the world reserve currency?
Hello!
There is a lot of debate surrounding Bitcoin and its ability to become the world reserve currency.
Today, Bitcoin is far from being considered a currency. Investors that HODL Bitcoin consider it a store of value. Those who use it for their transactions suffer from one of Bitcoin's weaknesses, its huge fees for small transactions.
Since its early years the number of users who use Bitcoin has not stopped growing, we are at historical highs of Wallets created and Wallets that have Bitcoin inside. But in order to compete as a currency, Bitcoin should fix its scalability issues.
In order to be a reserve currency the mainstream adoption would have to grow a lot and that would inevitably make more people make transactions that would end up raising the fees even more.
But if the community and developers can solve this problem, we could go from considering Bitcoin as a long-term investment to world reserve currency. I don't particularly dislike the option of Bitcoin being always considered a store of wealth instead of using it for all the daily transactions I make.
I don't need to use Bitcoin to buy bread, what I need is a tool that helps me fight inflation destroying my savings, a tool that is decentralized and gives me financial sovereignty without having to rely on any third party.
If we take a closer look to the evolution of World Reserve Currencies since 1,400 we are able to see that they always Rise an Fall. This time will rarely be different and the United States Dollar dominance will eventually fall like all the other times. Bitcoin could be a really nice substitute but I doubt it will be anytime soon.
Find here a really nice chart from Dan Held showing the World Reserve Currency evolution over time:
Enjoy! π
