For more than 100 years, the US dollar has been superior in the rest of the world as a global reserve currency. But wWith the turmoil economy and the excessive inflation coming for the US dollar, does Bitcoin break the dollar as the global reserve currency, which is valid for the next hundred years?
Revisiting the History of Global Reserve Currencies
Throughout history, every hundred years, the dominant financial superpower changes hands, and what the world trusts as the main global reserve currency also changes.
II. After World War Bretton Woods agreement He placed the US dollar as the central anchor and gave it in favor of the global reserve currency worldwide.
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Before the dollar, the British pound served as a global currency in the 19th century. Before that, it was the French Franc, and before that, the Dutch gilder dominated the 18th century because of the Dutch East India company's monopoly on global trade.
But the world has changed dramatically since then, and most of the global trade and commerce is digitally executed. The digital age causes fiat currencies to show signs of aging and shows that a new currency is required to keep up with the change in technology.
Reserve currency status usually takes about 100 years. Petrodols have definitely had a good trip in the past 100 years. At some point, people will be using goods (oil, gold, food, houses, etc.) pic.twitter.com/slkwpeq2rh
– PlanB (@ 100trillionUSD) March 26, 2020
Can Bitcoin Change the US Dollar to the Reverse Currency of the World?
Bitcoin is only a digital currency, and the world's first decentralized cryptocurrency that exists and operates without the control or intervention of a third party provides a unique benefit that existing national currencies cannot do: the separation of money from the state.
Countries around the world are striving to create their own natural digital currencies to combine the advantages of cryptocurrencies like Bitcoin with their dominant fiat currencies.
China has been reported to have recently completed the creation of the digital currency, and recently digital dollars have been mentioned in an economic incentive bill.
In today's global conflict conditions and The ongoing power struggle between the USA and ChinaIdeally, the next global reserve currency will have no connection with a particular nation.
Bitcoin was created during the recent economic recession to prevent recurrence of future problems and contained many features that made it more affordable in any digital currency issued by countries such as China or the USA.
The existence of decentralized men outside the control of any nation is particularly valuable, and smaller countries may prefer Bitcoin instead of sending it to the natural currency of a global superpower as a reserve.
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Bitcoin is hard-capped, so while there may be only 21 million, digital currencies such as print-oriented paper currencies that dominate the world today can be created at the door.
In the coming age of hyperinflation, the shortage of Bitcoin can help achieve astronomical values, as the economy has fallen to a full death spiral.
And with additional benefits that can help it thrive in today's strange new world, for example, being contactless and impermeable with the coronavirus may not be long until Bitcoin finds out whether it can resolve the dollar and become a global reserve currency.