Predications about Bitcoin becoming the next reserve currency for the world is already doing the rounds. Many feel that this is wishful thinking. While there are those, who wish this becomes a reality. Some feel that in 15 to 20 years, this might become a reality.
Dan Hedl opines, “Yep! Definitely decades” for Bitcoin to become a reserve currency.
Simon Dixon, BTC Angel Investor, recently spoke about how Bitcoin could become a world reserve in his video. He acknowledges that the majority of the people would have cognitive dissidence in this regard.
Some investors were inquisitive questioning about what are the odds for at least one central bank to be already HODLing Bitcoin. If one does so, it obviously means that technically BTC is a reserve currency. Further opined, that at some point in time, it should be the global reserve, which probably might be a 15 to 20-year process.
However, level-headed thinkers have to state that we are overestimating what could be done in 1 to 2 years, while underestimating what could be done in 10+ years.
Dan Hedl took to point out how it takes all the trust to make it work. Further clarified that the Central Bank should not be trusted to debase the currency, but recollected in Satoshi Nakamoto terms on how fiat currencies are full of breaches.
Several investors would love to see Bitcoin become the reserve currency, but they know that it is not going to happen in the short term.
Sydney Ifergan, the crypto expert, tweeted: “Bitcoin (BTC) might not become everything about value for the world, no matter how good BTC can be, centralized authorities from across the world would not want to lose their power to BTC.”
Bitcoin (BTC) would be the First Option in Diversification
Power retention is crucial for administrative authorities, and they will allow BTC to become the official money power; however, very likely, it will be incrementally added to institutions’ holdings in small amounts alongside their holdings. For anyone who wants to diversify into crypto, BTC would be the first option.
Someone rightly stated, historically, currencies are supported by big guns. Further stating, “USD has aircraft carriers, nuclear subs, and stealth fighters backing it. Should BTC/miners start doing the same? IMO, nothing wrong w pushing digital gold narrative/not threatening governments…”
While the trending ideal is that the $USD will lose its status as a global reserve currency, if that be true, the next though in the line is whether BTC will catch its position. Does that mean other fiat authorities would allow it to happen? Probably not.
