Bitcoin: A peer-to-peer electronic cash, a whitepaper of bitcoon published by Satoshi Nakamoto. People have focused a lot on the title alone. Many contend that the title was actually the core fundamental principle of bitcoin.
This is why some groups suggested to increase block size or create lightning networks for the bitcoin to be fast. This leads to some arguments from the bitcoin communtiy and resulted into a fork.
Bitcoin fork exposed the flaw of bitcoin when it comes to being a digital currency: it is just too slow. The lightning network is not a solution that's viable for the long term. But, there is a solution where as low as bitcoin is, it could actually fullfill Satoshi Nakamoto's original vision for bitcoin and in fact, it could become the digital currency of the internet and could become the reserve currency in the world.
For me in the past, Bitcoin is digital gold and it's tortoise-like speed prevents it from being a tradable currency fit for retail adoption.
Bitcoin can be digital gold and the electronic currency in a very interesting situation we may never have considered.
We hear a lot about the reserve currency of the world which is the US dollar and could be soon be the digital one. So what is a reserve currency?
Since we live in different countries and use different currencies, we need some base standard by which we all as a global community can use to trade back and forth. The world reserve currency right now is the US dollar and this is the very key to the United States economic success and dominance in the last century.
It's been based upon the fact that every other country in the world has to own US dollar to operate globally in finance. This gives a huge boost to the value of dollar but it's almost time for the US dollar to go down gently into the mainstream.
According to history, the US dollar's time is almost up!
For almost over 600 years, there's been six different world currencies. If you could do some quick math, that means about every 100 years, there's a new reserve currency. Technically, the average of last five world currencies is 95 years each and right noe the US dollar is sitting at 95 years (1925-2020). So it's almost time to have a new one, the only questin is what will it be?
The Chinese one is certainly the top candidate right now. They look to dominate the United States within the next five years but recently the Digital Yuan was not well received after it's test run.
We are missing the obvious thing here.most of the world does not like China. In fact, not only the United States basically a war with China already but even in European countries. They are finding out a lot about China's espionage and battle tactics as they've been taking over businesses left and right. Additionally, there's been a lot of secrecy and scandals between African countries and China as well. World does not want China to be the reserve currency, i think.
And don't forget the Covid-19 pandemic. What if China intentionally released the disease to bring down the rest of the world? Wether or not it is intentionally released or accidentally released, China used it to their advantage to weaken and take advantage of other countries. That's why they allow their people to travel internationally but not domestically.
Would the United States rather have China or Bitcoin be the reserve currency?
I think, if faced with that decision, the answer would be very obvious. Of course the US will fight like hell to make sure the dollar does not lose it's reserve status. Unfortunately that decision is not solely up to the United States. It's up to supply and demand, it's up to the free market.
Here's the twist. Bitcoin itself is not ever going to be the world's digital currency choice because it's extremely too slow, but what if the eventual choice or the digital payment solution is pegged to bitcoin in the same way stable coins are pegged to the US dollar. If this occurred, the bitcoin would actually be the basis for the digital electronic cash.
The more things develop in the world and in cryptocurrency, this scenario is a very likely to happen.
So what if the bitcoin does not become the world reserve currency?
Well, i think, bitcoin will be the basis for the digital currency of the internet whatever that will eventually be.
What do you think of this? Let me know by leaving a comment down below.
Amazingly written