Why will bitcoin become the main reserve currency? The role of BTC in the global economy

Changes are inevitable, and the digital asset market knows this better than anyone. Volatility and price fluctuations, change of supporters and even a change of principles – all this made the first decade of Bitcoin at least stormy.

Initially, Bitcoin was looking for the glory of the world currency, they wanted to see it as a universal, stable instrument of the authorities and censorship. Although it was created in opposition to “government tyranny,” the “investment” aspect of the digital asset came to the fore in the first decade.

Of course, over the past few years there have been major changes in the adoption of cryptocurrency . This is the recognition of legislators, regulators, mainstream media and the general public, but instances of use are quite rare and do not meet the expectations of crypto enthusiasts.

In addition, the number of countries that did not accept cryptocurrency due to its use in the shadow business also affected its use.

With the transcendental level of active BTC addresses, increased hashrate and dominance correlated with the price rally, supporters look at the fundamentals of cryptocurrency as prerequisites for the “real” life of Bitcoin. But can Bitcoin support this growth and become the global currency of the future?

Many supporters of cryptocurrency, especially Bitcoin maximalists, believe that this dream of a “global reserve currency” may come true sooner than it seems. The co-founder of Morgan Creek Digital and one of the leading experts in this field, Anthony Pompiano, called this goal the “ministry of defense” of the coin.

In a recent interview, he noted that Bitcoin can go the way of becoming the main global currency, and this will happen without violence and war. In a world full of lust for power, Bitcoin can become a currency leader without “threats and weapons.” The BTC acts more from “defense” than from “attack”.

In an era when the mind transcends matter, where skill can transcend brute force, where knowledge can transcend power, force is no longer the only decisive factor. From a diplomatic point of view, military mastery cannot be the only determining factor in a country's position; it is also necessary to mobilize economic and technological "armies."

Calling this “indirect use of force,” the American political analyst Joseph Nye, in an article in 2011 entitled “Economic Force Replaced Military Power?”, Has already formulated the above.

In fact, Pompiano repeated the Nye theory, drawing an analogy with the emergence of Bitcoin and the world of cryptocurrencies. The expert said that the prospects for the emergence of Bitcoin as a “global reserve currency” are very large.

• Firstly, from the point of view of military power, Bitcoin is uncontrolled, and its “decentralized nature” makes firepower “irrelevant”.
• Secondly, Bitcoin cannot be limited to any party, therefore, unlike the US dollar, Bitcoin cannot be used as a tool for economic sanctions.
• Finally, given the solid foundations of Bitcoin (the promised reward of a billion dollars in breaking into the BTC network did not lead to anything), exclude possible cyber attacks.

According to Pompiano, it turns out that Bitcoin’s defensive capabilities can exceed three basic conditions that create a global reserve currency, and this will become apparent in the near future:

“The world is changing fast. Nation states out of trend. And Bitcoin is a sleeping giant who has every chance of becoming the first currency to receive the status of a global reserve without the need to enter into conflict. ”

Publication date 05/07/2019
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