• Bitcoin could become a global reserve currency, replacing the US dollar
• If that happens, things would be priced in bitcoin and central banks would hold bitcoin on their balance sheets
• This would move from a debt economy to a savings economy and production-based economy instead of consumption-based.
What is a Global Reserve Currency?
A global reserve currency is a form of money that is widely accepted by countries around the world. It can be used as a unit of account, medium of exchange and store of value. The current global reserve currency is the U.S. dollar which has been the dominant currency since World War II.
What Would Life Be Like Under A Bitcoin Standard?
If bitcoin were to replace the U.S. dollar as the global reserve currency, then things would be priced in bitcoin at stores instead of U.S. dollars all over the world. This means that people’s daily lives would change drastically because they’d have to use bitcoin for their transactions instead of fiat currencies like they are used to now. Additionally, central banks could hold bitcoin on their balance sheets giving them an advantage over other countries who don’t do so already.
The Legacy System On A Bitcoin Standard
Under a bitcoin standard, many aspects of our current financial system will become obsolete or superfluous such as bond markets and central banks might not even be necessary anymore due to their purpose being replaced by holding bitcoin reserves on their balance sheets instead . This shift from using debt economies to savings economies and from consumption-based economies to production-based ones will bring about massive changes within our economic systems worldwide if it occurs eventually in the future when Bitcoin becomes globally adopted as a mainstream form of payment method and asset class for investments/savings purposes alike..
Benefits Of Moving To A Bitcoin Standard
Moving towards using Bitcoin as our global reserve currency has its advantages too – mainly freedom from financial oppression due to its decentralised nature which makes it difficult (if not impossible) for governments or other entities to control it unlike traditional fiat currencies where there’s always some form of inflationary pressures present due to centralised monetary policies implemented by these same governments/entities that control them accordingly through various regulations & policies enacted upon them at any given time..
It may still take some time before we see an eventual adoption of Bitcoin becoming our main global reserve currency but with more countries accepting it as legal tender while also embracing its potential benefits over traditional forms money (such as privacy & security) this doesn’t seem too far out into the distant future anymore either – especially considering how much traction this digital asset has gained throughout recent years both financially speaking & technologically wise alike!