#Bitcoin #FED #ECB

Is a new world reserve currency going to replace the US dollar?

I don't think so, but not in the way most people think.

I'll try to explain:

So first, what is a world reserve currency?

1. A reserve currency is a large amount of currency held by central banks and major financial institutions to use for international transactions.

2. A reserve currency reduces exchange rate risk since there's no need for a country to exchange its currency for the reserve currency to do trade.

3. Reserve currency helps facilitate global transactions, including investments and international debt obligations.

4. A large percentage of commodities are priced in the reserve currency, causing countries to hold this currency to pay for these goods.

In my way of thinking, the concept of having a world reserve currency is coming to an end. It's a keynesian invention that is based on a fiat debt based ponzi scheme in the first place. Central banks are the ones at the core of such a reserve currency and they will be gone in the future we're going into.

Sure, governments will come up with their new fiat digital fascist currency app, but people are going to reject them.

So, will #Bitcoin then be the world reserve currency?

No, because there won't be debt nor central banks and thus it fails the definition within that category.

Yes, Bitcoin will be used to pay in international trades, other stuff will get priced in Bitcoin and it will be widely adopted and used with other functionalities. The willingless to lend Bitcoin out will be way less than is now the case with fiat money.

So yes, the US dollar won't be the world reserve currency anymore. And yes, we're moving into the #Bitcoin standard, but that isn't a world reserve currency.

Bitcoin isn't money, it's code that some use like money. 😉