Isn't this the same thing for USD? The reason the dollar is so strong is because everyone needs dollars right now. The more deals that countries set up between themselves to settle their transactions outside of the dollar, the less demand there will be for dollars. So how much buying power will USD have if less people around the world want to use it?
The problem here is that there is not an endless supply of Bitcoin, there are only 21 million of them. Nobody can mint more. Which is part of the reason for volatile movements. The government will eventually come out with it's own digital currency, which they are already discussing it as we speak. You think Bitcoin will automaticly dissapear when this happens? Another thing you are forgetting is Bitcoin is a worldwide currency. We don't need the U.S to function. Even if it were to be banned, users would just relocate to other countries. Nuff said
If, and it's a big if, the gov't can come up with a crypto that is easily moved around the world without the need for a trusted third party, there won't be a need BTC. If a gov't backed crypto can be had by the rank and file of all the third world countries, easily moved across borders and used peer to peer as a medium of exchange, is there really a need for BTC. A US dollar, Euro or even a Gold backed crypto would fulfill most of the need in the unbankable world. Where then is the value of bitcoin? All I can see is rarity and the hope there will be someone who will pay a higher price than you did.
You're conflating US $ stablecoins and BTC on purpose Is there even a fiat currency that is gold-backed? and trusting any central bank they have the gold they claim they do that you can redeem for has not worked in the past
boomerz and their love of gold... anyway, crypto backed by real gold and redeemable for physical gold from a US regulated and licensed by the state of New York It's been out for many years I was thinking of buying some a while back, hardly any defi adoption for it https://paxos.com/paxgold/# https://coinmarketcap.com/currencies/pax-gold/
All I'm saying is what if. There is no US or Gold backed stable coin . Yet. All I'm saying is that if the gov't meets the need with a regulated crypto why would you need BTC.
Being a reserve currency strengthens the currency - but i think this is small. What really keeps the dollar stable is that it is backed by a powerful and stable government. You can’t say the same for any crypto. That is why so many are complete frauds. we will probably settle transactions with crypto. A USD coin will be a fiat currency by definition. Btw - a bitcoin is a fiat currency too: one that is backed by nothing other than some computer code.
Well, to add my two cents... today I started my first accumulation of bond ETFs for the first time. The coupons are less than what you'll get from staked ETH and the rest. But... I'm happy to diversity my portfolio a bit more.
False Bitcoin is backed by the mind-boggling 300 million trillion hashes per second of computing power Bitcoin network hashrate