Can bitcoin replace the U.S. dollar as a reserve currency

Discussion in 'Stock Market Today' started by Rustic1, Feb 8, 2021.

  1. Rustic1

    Rustic1 Well-Known Member

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    Thought I would toss this out there to hear opinions.
     
  2. Rustic1

    Rustic1 Well-Known Member

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    Just one of the many articles since TSLA made their announcement.
    Interesting look into the future?



    Screenshot_20210208-205324_YouTube.jpg
     
  3. Heena khan

    Heena khan New Member

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    Bitcoin could potentially replace the U.S. dollar as the world's reserve currency, but for this to happen, the digital currency would need to make progress in several important areas. Currencies serve as a medium of exchange, a store of value and a unit of account.
     
  4. andyvds

    andyvds Active Member

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    bitcoin will NEVER replace the US dollar.
     
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  5. turtle957

    turtle957 Member

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    Hard to say...but all things cyrpto still feel a bit too similar to Tulip Mania for me
     
  6. StockJock-e

    StockJock-e Brew Master
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    Way too volatile!
     
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  7. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    I will be surprised if bitcoin ever becomes a reserve currency because it is decentralized.
    Don't forget there needs to be a national government that does politicking to make a reserve currency. Bitcoin has no government that would back it. It's not like a currency just shows up and every country decides to make it a reserve currency above their own printed money.
     
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  8. Rustic1

    Rustic1 Well-Known Member

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    Getting some great responses, the intended purpose of this thread.

    I have never bought crypto and most likely will never.

    Inflation is a problem though and printing more and more fiat dollars is a concern. The U.S. dollar became the reserve currency while it was still backed by gold. That has changed and at some point it could come crashing down.

    Opinions?
     
  9. StockJock-e

    StockJock-e Brew Master
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  10. anotherdevilsadvocate

    anotherdevilsadvocate Well-Known Member

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    Agree. Bitcoin may or may not last for 30 years, but in the future there will be a blockchain-based "crypto"currency that could be used by the government.
    It will probably be boring though, not moving 20% a day.
     
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  11. StockJock-e

    StockJock-e Brew Master
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    yeah, its tough to have a reserve currency that nobody actually uses for buying stuff! :biggrin:

    Nobody is buying BTC because they need to go pay for some bread and milk at the store. The only reason people buy is because its going up, like a stock or commodity.

    Currency needs to circulate, BTC has fees upwards of $10 per transaction now, making it useless as a currency.

    BCH - Bitcoin Cash is more viable as a currency since the transaction fees at $0.002
     
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  12. Rustic1

    Rustic1 Well-Known Member

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    Some sellers such as J.M.Bullion actually give a better rate with bitcoin than they do credit cards. Feel free to look at their website to confirm, however buying a cup of coffee would prove your point. Again, I dont,have never and probably never will own any due to the fluctuations. My heart would explode at the thought of owning it. It does have potential in my opinion.
     
  13. StockJock-e

    StockJock-e Brew Master
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    That will change very quickly if/when Bitcoin goes into a longer term downtrend.
     
  14. Rustic1

    Rustic1 Well-Known Member

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    They have been doing it for years GIl. Accepting crypto payments, they most likely exchange it instantly. You don't have to own it to accept it.
    The big town near me has a ATM you can exchange it with, has for years.
    Its not going away and most people don't understand it.

    I dont own any or promote it. Like you I hate to see the FOMOs get screwed.

    I bought a lot of silver from them years ago, its finally paying off, on paper for now.
     
  15. StockJock-e

    StockJock-e Brew Master
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    I doubt it. Nobody dumps their BTC when it keeps going up every year.

    Unless you need cash, its been historically more profitable to hold BTC, but that is not something that will last forever.
     
  16. Rustic1

    Rustic1 Well-Known Member

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    From what I understand,Only 21 million can be mined, I've read that lots of it has been lost due to losing the passwords to the digital storage.

    I have a friend that I helped with my style of investing/trading a few years ago and he bought 10 in the 500 range and swore he would retire from it someday. I laughed and told him he was crazy and it would go bust. I bought the same amount in silver bullion just to prove him wrong. Looking back, this younger generation may just teach us a thing or two. I dont YOLO or FOMO but beginning to wonder. I still do pretty good w my nickel and dime plays.
     
  17. turtle957

    turtle957 Member

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    I've heard people use this as a selling point for cryptos and Bitcoin specifically but I think Charlie Munger had a really good take on this concept:

    "You know it is one thing to think gold has some marvelous store of value because man has no way of inventing more gold or getting it very easily, so it has the advantage of rarity. Believe me, man is capable of somehow creating more Bitcoin... They tell you there are rules and they can't do it. Don't believe them. When there is enough incentive, bad things will happen."
     
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  18. StockJock-e

    StockJock-e Brew Master
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    Correct.

    Yeah we hear it everywhere and I hate it when people use it as an argument because I feel its bullshit.

    They make it sounds like there is scarcity.. its rare! So you need to buy it because there are only 21M, but that is nonsense.

    You trade btc in decimals right down to a satoshi, which is 0.00000001 of a bitcoin.

    Its not like shares in a company where there are 10M shares outstanding thats it.

    The idea that you need to own an entire bitcoin because they are rare makes it feel like pokemon cards.
     
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  19. Rustic1

    Rustic1 Well-Known Member

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    Totally different concept. Shares can be diluted, split etc. Blockchain is entirely different. I'm not a advocate of if and not suggesting anyone buy or trade it. Most dont understand it and as humans we have a fear of the unknown. Point blank, its a accepted means of currency more and more are converting to it and many more will. It is not going away, like it or not and will soon be widely accepted by major institutions.

    Prove me wrong if you can.

    Again, IM NOT PUMPING IT but you must realize the times of yesterday have changed and will continue to do so.

    The idea that it is rare and everybody must own one is a myth. It simply means that unlike fiat money or share dilution, there is a capped limit that the blockchain maintains the permanent supply.

    The dollar was originally pegged as the reserve currency when it was backed by gold, it is now backed by nothing but a promise to repay.

    Publicly traded companies can dilute shareholders much the same way.

    I can see your point. But you seem to misunderstand the blockchain technology.
     
  20. Rustic1

    Rustic1 Well-Known Member

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    I did a little backtracking and bought some, swore against it for years and did so last night up until a few articles hit my feed.
    Consider me one of the clowns. May my bubble burst at the seems of many.
    Mine is longterm.

    ENTER AT OWN RISK.

    Screenshot_20210211-103553_Chrome.jpg Screenshot_20210211-104134_Chrome.jpg
     

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