Posted 2 months ago | by Catoshi Nakamoto
The first U.S dollar, as we know it today, was printed in 1914. Over 100 years later, it’s safe to say that printer must be overheated by now. Before the United States became the world reserve currency, Portugal, Spain, the Netherlands, France and Britain all carried the torch. On average, those reigns lasted 94 years before that responsibility became too hot to handle. As our inflation issue exacerbates, people are starting to wonder: Will America drop the hot potato before the 94-year average? The conversation for Bitcoin replacing the dollar as the world’s reserve currency is heating up. Here’s my hot take.Read More
Lets get it!
Welcome to BitBoy Crypto. Home of the Bitsquad, the largest crypto community in all of the interwebs. My name is Ben. Every day on this channel I show YOU how to MAKE MONEY in Crypto. If you like money and crypto then make sure to hit that subscribe button. If you want to go deeper into crypto, make sure to check out bitlabacademy.com. In this video, we will discuss the possibility of Bitcoin becoming the world’s reserve currency.
Bitcoin World Reserve Currency Is Inevitable
As politicians on the both sides of the aisle take their stance on crypto currency, it’s easy to see how this topic can be highly controversial amongst those who have the power to make real changes. Senators such as Ted Cruz and Cynthia Lummis see crypto as an opportunity to help create revenue for their respective states. Since China has banned crypto yet again, there is a massive gap in the market for mining the asset. Cruz and Lummis are fighting for clarity because they know an opportunity when they see one and they want their states to front run the movement to fill the void. On the other hand, former Secretary of State Hillary Clinton recently stated on a panel discussion at the Bloomberg New Economy Forum that crypto could undermine the dollar as the world’s reserve currency and “destabilize nations”. Is she saying this because she truly cares about the world’s equilibrium, or is it because she has skin in the game in the world of political 3D chess? Considering her net worth is around 120 MILLION dollars, it feels like those closest to the printer will go to any length to protect the ink cartridge and maintain their power over the rest of the world. As we tip toe closer and closer towards mass adoption, I often wonder how many miles these steps will take us. Will Bitcoin just become a globally accepted alternative asset class, or will it surpass the status quo and become the world’s reserve currency for all of humanity? It’s possible. This conversation has been heating up across the Internet with the likes of Jordan Peterson, London Reel, Michael Saylor, Rand Paul, and several other politicians and elite investors weighing in on the possibility. Before we get into the pros and cons of Bitcoin taking over the world, lets first take a leap back through time and look at what made the U.S dollar the powerhouse that it is, where it went wrong, and what can be done about it.
The first US dollar was printed in 1862, and became the official reserve currency of the world less than 100 years later in 1944. The decision was made by a delegation from 44 Allied countries called the Bretton Woods Agreement.” At the time, we we’re on a gold standard which promised you could receive x amount of gold for x amount of dollars. Kind of like how stablecoins are pegged to the dollar now. This system worked! Unfortunately, because we had to pay for another war, the gold standard was abandoned in 1971. (Thanks a lot Nixon) This is where a number our problems really started because that was the year our dollar officially became fiat currency. If you don’t know, this means it’s not backed by anything other than the mutual agreement that we all consent to; that a dollar is a dollar. Since leaving the gold standard in 1971, a multitude of problems went awry. On average, inflation has increased around 4% per year since then. Inflation is even more of an issue now considering over 40% of U.S dollars in circulation were printed in the last 18 months.(source, NOTE: this statistic was released by the federal reserve and is common knowledge, but I sited a source just in case.*12 months since may so 18 months from now*) According to the website wtfhappenedin1971.com, issues with ranging from federal/national debt, consumer price index, personal savings rate, banking crises and many many more all, all went out the window in 1971; a direct result from abandoning the gold standard. This untimely defenestration started an avalanche of issues that cannot be undone unless another system is put in place. Does it make sense that the county that’s is the WORLDS reserve currency is just shy of 29 TRILLION dollars in debt?
Before I say what I’m about to say, I want to take a moment to state that: just because I’m a Falcons fan doesn’t mean I’m not a Patriot. I bleed red, white and blue, but what’s more important: the well being of America’s power, or the well being of the WORLD? It’s no secret that people are losing faith in the government and their ability to make decisions on the global scale. A recent gallup poll points out that the trust in the federal government to handle international problems is at a record low of 39%. (see charts on that page) According to Nasdaq, senator Rand Paul, who accepted Bitcoin donations during his presidential run in 2016, stated, “I’ve started to question now whether or not crypto currency could actually become the reserve currency of the world the more and more people loose confidence in the government.” He has a solid point, and the numbers don’t lie. The truth is, most people who invest in Bitcoin do so because it’s the best bet against inflation. Who wouldn’t want to use a depreciating asset to purchase an appreciating one? Yes, the speed, or time of finality of Bitcoin needs to continue to be improved over time, but there are far more pros than cons to this argument unless the legacy system lines your pockets. There’s the 1% of the 1%, and then everyone else who lives on planet earth, who’s best interest should be at heart?
So say if Bitcoin was to become the world reserve currency…yes, it would take some power away from America, but it would be MUCH more fair for every other country in the world because Bitcoin doesn’t belong to any country. It doesn’t belong to Germany or France, China, America or anywhere else. Bitcoin is for everyone. America has heightened emotions about spreading the ideology of equality, but we don’t want to give up the throne. Each country could still have it’s own currency, and that currency would be pegged to Bitcoin rather than the dollar. In my opinion, this could result in less global conflict because one country wouldn’t have a leg up on the rest. (Other than the size of their military of course, that’s a whole different conversation) No one country should rule the world; we should all be able to co-exist without anyone’s foot on anyone’s neck. What makes the U.S so powerful as the world reserve currency is that their debt obligations are backed by force. For example, if you legally work or provide a service for someone and they don’t pay you, you can sue them. If they don’t go to court, they will be summonsed to go. If you steal money and get caught, you will most likely go to jail. Many battles have fought over taxes, trade tariffs, or someone not paying what they owe. How much more blood has to be spilt over money and greed? Only if there was a universal monetary alternative that decentralized and redistributed the power so money was more fair. (wink wink)
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Consider the alternatives if America dropped the hot potato and was no longer the world reserve currency. Would you rather have China hold that power? Or Russia? Or any other country? Absolutely not. China keeps cracking down on crypto because they want all the Yuan to stay in China. They don’t want their citizens to have any options so they are forced to rely on their government. That right there is a first hand example of why greed should not dictate ANY more global decisions. A totalitarian world is not one I want to live in. There is a better way. As Vitalik Buterin pointed out in an article on nakamoto.com, “When building mechanisms that decide high-stakes outcomes, it’s very important for those mechanisms to be credibly neutral.” For something as high-stakes as the world’s monetary reserve, there is no room for bias; there is no room for greed. There has to be a neutral middle ground with an incentive structure that is fair as fair can be for everyone involved. People are frustrated and their patience is wearing thin; the temperature is rising. Something needs to solve this issue before someone does. Hopefully that something is Bitcoin. Let’s be honest, is it fair for one country to hold that much power over the rest? Do the politicians really believe they can keep printing money and inflating the dollar without consequence? Something has to give, and the longer we push this off, the longer we wait to make a change, the worse it will be for whoever has to clean up the mess.
In 1984, an Austrian-British economist F.A Hayek said, “I don’t believe we shall ever have a good money again before we take the thing out of the hands of the government, that is, we can’t take it violently out of the hands of government, all we can do is by some sly roundabout way to introduce something they can’t stop.” In 2009, the whitepaper for that idea was published, and the world will be better for it.
That’s all I got, be blessed, BitBoy out!