Bitcoin has risen from the dead so many times, it makes Lazarus look lazy. Yet its doubters persist: “Bitcoin is a bubble,” they say; a “risky speculation with little chance of ever becoming an established form of money,” they shout.
But Bitcoin’s obituarists are not just mistaken: they are cast iron, copper-bottomed, 180 degrees wrong. Because Bitcoin’s success isn’t speculative, it’s a certainty. Or at least, as certain as anything can be in the world of finance.
Why am I so sure? Like any other Bitcoin supporter, I believe in the brilliance that’s baked into Bitcoin at the technical level. I believe in the fundamental value bitcoin holds for an individual’s financial sovereignty. I believe in its capacity to move wealth through time. And perhaps most importantly, I believe it is the best way to survive the tectonic economic shifts we are witnessing in the world today. And we “believers” are no longer alone. Bitcoin is now being embraced by everyone from institutions to governments to ordinary savers. Despite the press being fixated on price, Bitcoin continues to pass many structural and cultural adoption milestones with rapidity and ease.
All the evidence heralding Bitcoin’s rise to reserve status is there. All you have to do is look.
The Orange Standard
You don’t have to search too far to find disquisitions on Bitcoin’s technical and theoretical brilliance, so I’ll keep my own precis brief.
When fiat replaced the gold standard half a century ago, the world’s bankers (including central bankers) discovered a multitude of ways to debase the currency. President Biden’s $3 trillion splurge is only the latest example of paper money’s malleability. Conversely, and as more people each day are realizing, Bitcoin can’t be inflated: there is a hard cap of 21 million coins. There’s simply no way to print or create more of it out of thin air.
Bitcoin’s other advantages include the fact that, being digital, it does not require physical infrastructure to store. No vaults, no heavily-guarded vans or aeroplanes, no Fort Knox. You can transfer a billion dollars’ worth with a couple of clicks. And then there’s the fact that Bitcoin is not controlled by a central authority, which has rendered any attacks (and there have been a few) ineffective.
That, in a nutshell, is why Bitcoin ought to become the world’s reserve currency. Now let’s look at why it will.
The Road To Reserve Currency
We don’t need to speculate about Bitcoin’s rise to reserve currency status because it’s happening already. No, governments are not buying it or issuing bonds priced in BTC yet. But who says you need a green light from the government before you start putting funds into a safe haven?
Several very large public companies have already started converting their fiat balances into bitcoin. And why wouldn’t they when, as Microstrategy’s CEO Michael Saylor says, holding cash is like sitting on a melting ice cube? With businesses like Tesla,…
Read more:The Inevitability Of Bitcoin Supremacy