BoBo the Bitcoiner 255: What is Bitcoin Reserve скачать в хорошем качестве

BoBo the Bitcoiner 255: What is Bitcoin Reserve

Every country needs their own Reserve to overcome financial difficulties in times of economic hardship. A typical example is the Covid 19 which hit the world in 2020, one of the worst that hit hard on both the govt and her population. In the early years, Reserve assets are in the form of commodity, then oil and later gold. Gold has been the popular Reserve because of its rarity. Sovereign Fiat currency was never respected by other countries. Gold was the only international Reserve standard. It was in July 1944, at the Bretton Woods Conference that 44 countries agreed to peg their currencies to the gold standard for instability that had contributed to the Great Depression and World War II. An ounce of gold is fixed to USD35. Every country starts to horde gold in the Reserve. Because of this gold standard, it restricted govts from printing more money during economic crisis. As economies grew, the demand for money outpaced the availability of gold. This imbalance made the system unsustainable. Many suspect that there is not enough gold at Fort Knot. Allied countries make a gold run, by asking back their gold, by paying USD back to US. Then comes the shocking news from US President Nixon in 1971, who ended the dollar’s convertibility to gold. All gold withdraw was suspended. The world has now come face-to-face with only US dollars as a reserve currency, later on back by oil dollars after Kissinger make Saudi Arabia signed all oil deals must be in USD. Thereafter, the world has no other choice but to accept USD as the Reserve Currency. Ironically, by 1973, gold was trading at around $120 an ounce, reflecting the shift in global confidence and demand for gold as a store of value. When US confiscate Russia USD reserve fund, the world wakes up. If US can simply confiscate a country’s reserve in US, how can America be trusted anymore. During the last few years, every country is trying to reduce their USD Reserve and switch international trading (except with America) to other alternate currencies. The USD Reserve is losing its dominance and importance. It’s a matter of time; the world will not rely on USD for trading anymore. Most of the time, a country’s Reserve are in the form of their own sovereign Fiat currency and/or mix with a basket of other currency. This reserve is built over a long period where countries save their surplus over the years. The more Reserve you have, the stronger the country economically. But problem started when a country run into deficit. That means they spent more than their export of products and services. When still not enough, they print more fiat currency. All without any solid backup plan. The more debt they incur, the more they print. The debt gets bigger, like America today, faced with a debt of $36 Trillion, impossible to repay. Every time we talk about world economic, we have to talk about America, being the most powerful economic country (at least for now and the near future). America can print as much as they want, they world don’t trust US anymore. Today, establishing strategic Bitcoin reserves is on everyone’s agenda right now, led by the big moves from the US administration. BTC is becoming a top-tier asset recognized by the world’s financial powers. The elevation of BTC to strategic reserve asset status would be a hugely positive development. The currency’s progression would demonstrate the extraordinary potential of digital assets, from ETF inclusion to potential national strategic reserve status in the years ahead. This development would likely drive central global banks to recognize BTC as a qualified asset & expand their associated financial services. The fundamental attributes distinguishing BTC, including transparency & liquidity, offer significant advantages over traditional assets. This potential widespread adoption of BTC by mainstream finance & the public sector would integrate it throughout the economic landscape, delivering significant advantages for entrepreneurs, individuals & govts. Despite restoring private gold ownership rights in 1974, 4 decades of separation, combined with govt accumulation, had transformed gold into a luxury commodity with diminished financial utility. While BTC has not yet faced similar restrictions, the risk of “soft bans” through govt accumulation warrants attention & is a real risk. To secure BTC’s future value, it must become more open & accessible, allowing even more people to hold & use it. Establishing national Bitcoin reserves necessitates the creation of open BTC reserves, which would be characterized by universal accessibility, transparent & decentralized architectures, & the issuance of credible, transparent, highly liquid reserve-backed assets. The future of BTC depends on maintaining its foundational principles of accessibility & decentralization while adapting to its evolving role in the global financial system. It’s a question of time, BTC will be the future Reserve standard for the world.