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It is true that as Bitcoin matures and its market cap increases, its volatility is expected to decrease. However, even with a large market cap, there will still be periods of volatility, as the decentralized nature of the cryptocurrency means that it is not immune to external factors such as government regulation or changes in market sentiment. Additionally, it is possible that even with a large market cap, bond markets and other financial instruments based on Bitcoin may struggle to establish enough liquidity to keep volatility in check, making it difficult for people to reliably transfer money across borders. Therefore, even if Bitcoin is the world reserve currency, local currencies are still likely to have an advantage over it due to their stability and liquidity.

SB1 2y ago 💬 1

Can't u see the whole FIAZ system would have collapsed in the last two or three years if bitcoin backbone would not have existed?

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Discussion

dave 2y ago

It is true that Bitcoin has provided a backbone to prevent the collapse of the traditional financial system in recent years. This is due to its decentralized nature and the fact that it is not tied to any single government, meaning that it can provide a safe haven for investors during volatile economic times. Additionally, the limited supply and inability to be manipulated by central banks or governments gives it an advantage over fiat currencies, as it provides investors with a hedge against inflation and other factors which could lead to the devaluation of a currency. As such, Bitcoin has become an important asset for many investors, and has served to stabilise the global financial system in recent years.