Posted on 11/03/2015 8:27:03 AM PST by Another Post-American
The value of digital currency Bitcoin has soared 70% - and analysts think it could become one of the world's major reserve currencies within 15 years. The cryptocurrency has made big gains over the past two months, since it hit a low of $213 (£138) in August. But as it's currently trading at $370 (£240), it's nowhere near its early-2014 peak of $1,100 (£715). Some have speculated that Bitcoin interest from MasterCard and Bain Capital Ventures has legitimised the currency, which is the payment method of choice on the dark web. Others say it could be down to people using it to bypass capital controls in Greece and China. According to Bitcoinity.org, most trading in the past month has come from Chinese Bitcoin exchanges. The European Court recently ruled it is a currency and exempt from VAT. New research suggests it could become the world's sixth-largest reserve currency by 2030, with $1bn (£650m) being invested by big financial institutions in the next two years. The report comes from a company called Magister Advisors, which advises the technology industry on mergers and acquisitions. Partner Jeremy Millar said blockchain, the technology that powers Bitcoin, has revolutionised finance. He said: "Blockchain is without question the most significant advancement in enterprise IT in a decade, on a par with big data and machine learning. "Bitcoin has proven itself as an established currency. "Blockchain, more fundamentally, will become the default global standard distributed ledger for financial transactions."
(Excerpt) Read more at news.sky.com ...
Ping!
That’s funny, I haven’t noticed that one on Coinmarketcap. :-)
Personally, I’m a big fan of Piggycoin though...
Doesn't sound like a basis for a reserve currency to me.
The invention of bitcoin has been likened to the invention of the steam engine.
Even though there will be only 21 million bitcoins, each is divisible into 100,000,000 parts.
Bitcoin is a deflationary currency, which is the enemy of big government and the modern welfare-warfare state.
Bitcoin have value because people deem it to have value, just like they deem other items to have value, like precious metals.
Precious metals all have “value” exclusive from being only monetary,what can bitcoin do?
When is the fed going to go after the bitcoin users?
After all, any real threat to the fed’s fiat currency will surely be dealt with in the most brutal manner possible.
And don’t forget, there’s plenty here on FR that have a stake in maintaining the status quo (ie: control) by hanging paper and pushing electronic psuedo currency, not to mention continuing to gamble on the market with fake fed dollars.
Tulips worked as a currency once, let’s do that one again, since it worked so well the last time. /s
The popularity of one currency over another in international trade is dependent on debt. Remember debt spelled backwards is investment, and countries that have a lot of safe and profitable investment opportunities find their currency in demand. The US is still the country with the best investment opportunities and that is why the dollar is still king around the world.
Anybody want to bet their life savings on a venture in China? Brazil? India? Russia? How about Bitcoin? There isn't even a price system for Bitcoin. If I want to buy something with Bitcoin I have to convert it into some other currency to determine the real price. Most of the time I even have to buy another currency first and pay with that. Depending on how we play the definition game, Bitcoin isn't even a currency. Bitcoin is really just a distributed ledger system, a kind of virtual safety deposit box. That's all it is.
OK, so everybody wail and rant and throw a tantrum. Tell me how I'm going to be left behind ...blah blah blah. I know Bitcoin is an emotional topic for a lot of folks.
Simple answer to original post.
No.
The value in Bitcoin is in the network. I can send money anywhere in the world with it, for pennies or less, inside of 10 minutes, securely, with no govenment interference. Try that with precious metals or cash.
Additionally, I can walk across any border in the world, even naked, and I bring my bitcoins with me. Try that with any other currency.
Bitcoin will go away if the worldwide internet goes away (e.g. grid collapse), while precious metals will remain. That is why I also own some precious metals, also.
If bitcoin’s encryption is broken by quantum computers, there are quantum computer proof encryption algorithms waiting in the wings.
I’m bullish on bitcoin. Bitcoin is the enemy of government and the Federal Reserve counterfeiters.
Nice non-answer,gold is on our space satellites,silver is used in medicine,pal&plat in our vehicle catalyst,etc,ect.
What can bitcoin do?
Bitcoin is a scam and a ponzi scheme and is burdened with extreme counterparty risk.
Which is fine, but that won't make it attractive as a reserve currency. You will need vast opportunities for investments denominated in Bitcoin. Until you see that happen any talk of Bitcoin becoming a reserve currency is just wishful thinking.
“:Could Bitcoin Become Major Reserve Currency?”
No.
http://www.investopedia.com/terms/d/dutch_tulip_bulb_market_bubble.asp
Whether bitcoin ends up as reserve currency or not, who cares.
The original article is clickbait, with pie-in-the-sky claims.
That said, bitcoin will be a game-changer, IMHO, and having some of the properties of precious metals, and other unique properties, there will be a place for bitcoin to protect one’s assets from the ravenous state.
Here is a Stefan Molyneux’s take:
https://www.youtube.com/watch?v=Cs6F91dFYCs
sure, why not? anytime an IDEA like bitcoin can gain 80% “value” in a week like it just did or quadruple its value” in a 3 month period like it did a couple of years ago and then completely crash again after a while sounds like the perfect reserve currency to me! After all, if you don’t like it’s “value” today, then just wait a short while and it’ll have a radically new “value” a short time later. But then again, I COULD be wrong; after all, I’m far from an expert on such matters.
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