In 2023 Bitcoin is Impossible to Ban! It is the World's Reserve Currency. [orig]
Malaysia and Honduras are gunning for Bitcoin to become a legal tender or money. Today, Bitcoin surged its price as Blockchain Terra (Luna) bought $125 Million worth of Bitcoin as they announced the company is making BTC as a reserve 'currency'.
Terra (Luna) is a 'stablecoin' and is algorithmicly-pegged with USD, it means everytime a USD is created - a Luna is BURNED and everytime a USD is destroyed - a Luna is CREATED.
Bitcoin becoming a reserve currency?
In the current physical world the fiat US dollar is the reserve currency. Now, let us compare that to the Meta world or the Metaverse where Bitcoin will most likely be the unstoppable reserve currency. Remember in history, thousands of years ago money was backed by gold (until 1913 when Federal Reserve was created), hence we knew the term 'gold standard'. In comparison, we can say Bitcoin is very much like gold because of its one characteristic -Scarcity.
If this will be realized the price of Bitcoin will continue to go up way much higher than it is today. One possible way that Bitcoin would gain the status as the world's reserve currency is if AltCoins such as Luna, Avalanche, Ethereum, Solana, etc are going to start adopting BTC as a their 'reserve' cryptocurrency.
We all now El Salvador is the very first country to make Bitcoin as their legal tender in September of 2021, and because of this development it is not surpising where a domino-effect is going to happen with more countries joining in!
Most likely by 2023 dozens of countries will be legalizing Bitcoin as legal money.
The current pandemic/scamdemic, Russia-Ukraine war, and inflation are making Bitcoin tested as a safe haven, a wealth-preserving asset, and an inflation hedge. Testament to this is when the crypto-community donated a $100 million worth of cryptos to Ukraine on the onset of the war. This is evidence that more and more people are beginning to transfer their wealth to cryptos, which a decentralized asset.
During the onset of the Russian sanctions big institutions and oligarchs were quicly understanding what cryptocurrency really is and realizing Bitcoin could not be sanctioned.
The Impossibility if Banning Crypto
The recent survey shows that 25-30% of the American people now owns cryptocurrency, this means that outlawing Bitcoin or any other cryptocurrency is political suicide. What is definitely going to happen instead, is the tightening of regulations regarding owning cryptocurrencies. Politicians and oligarchs are now realizing the business potential of cryptocurrencies. Whats is sure thing to happen is the massive taxes being regulated against cryptocurreny transactions all over the world by which a government can rip-off huge profit from decentralized digital assets. Hence, the price of cryptos will absolutely skyrocket!
JP Morgan and Goldman Sachs are now transacting Bitcoin and trying to lead the crypto race as well.
The next few months will determine Bitcoin
When you have followed Bitcoin and cryptos closely enough in the last 2 or 3 years it is very evident that it has grown so rapidly and big! The downside still is that majority of the traditional market still considers Bitcoin as speculative or risk asset.
Will Bitcoin cement its 'real purpose' as an inflation hedge or a store value just like what physical gold is, or will it remain as some kind of a 'stock' only?
It's your decision.