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View Full Version : Could Bitcoin Become Major Reserve Currency?



M.Ehrmantraut
11-03-2015, 06:44 PM
A week or so ago one of my younger customers brought up bitcoin in conversation while I was doing a repair for him, he asked if I accepted bitcoin as payment and I jokingly told him to stop by the Coinstar machine as I prefer bills to change. I had never really heard much about it until then but saw this posted on my facebook newsfeed earlier and find the whole thing pretty interesting. It is really crazy how our world is changing.


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."



Could Bitcoin Become Major Reserve Currency? (http://news.sky.com/story/1581030/could-bitcoin-become-major-reserve-currency)

Harold Mansfield
11-03-2015, 07:12 PM
To answer the original question, No. Never. The only way anyone with actual money will trust an unregulated, digital currency that is constantly riddled with fraud is if they can exploit it.

JMO of course.

Freelancier
11-03-2015, 07:51 PM
The whole point of fiat currency (and BitCoin is that) is that it is only of value if enough people believe it to have long-lasting secure value.

BitCoin fails that. What you're seeing is a "currency bubble" brought on by a limited supply of Bitcoins, not an increase in value because of widespread acceptance and desire to have it.

see this: The Bitcoin Collective Delusion - Bloomberg View (http://www.bloombergview.com/articles/2014-02-25/the-bitcoin-collective-delusion)

MyITGuy
11-03-2015, 09:53 PM
While it may not become a major currency itself, the technology behind it could have major implications on our current financial industry
Forbes Welcome (http://www.forbes.com/sites/laurashin/2015/09/14/bitcoin-blockchain-technology-in-financial-services-how-the-disruption-will-play-out/)

David Hunter
11-05-2015, 09:13 AM
Heck, just like the money in our bank account, it can all go POOF and never be seen again.

At least with paper currency you have something to show for it.

Freelancier
11-05-2015, 09:26 AM
just like the money in our bank account, it can all go POOF and never be seen again.
Look into FDIC insurance, which should cover your first $250K of poof.

And anyone leaving more than $250K in a single low-interest account in a bank needs to have their head examined anyway.

turboguy
11-05-2015, 09:28 AM
There have been times in history when paper currency became pretty worthless. If there is ever a danger of that happening they should switch to softer paper so we can use it for toilet paper.

Frankly the chances of Bitcoin being the reserve currency are about as good as me becoming President. Very similar to the chances of me winning the power ball since I never buy a ticket. I do agree that it could be the forerunner of something that will change things a lot in the future.

Harold Mansfield
11-05-2015, 12:36 PM
I'm perfectly confident in the FDIC to back my currency. They just went through the biggest collapse since the Great Depression and successfully backed every dollar that they were supposed to from banks that went defunct during the Great Recession.

The real problem with the current system is that banks are still using your deposits for investment schemes knowing that if they fail the FDIC is on the hook should they lose. This current set up still has the ability to break the FDIC should they all do what they just did back in the early 2000's once again.

Otherwise, I'm more concerned with a catastrophic power or internet outage. If that happens it doesn't matter how much money you have or how it is insured since no one will be able to access your account and we won't be able to make ANY withdrawals. It's not like a teller can turn around and look up your info in a file cabinet somewhere.

David Hunter
11-12-2015, 12:45 PM
Otherwise, I'm more concerned with a catastrophic power or internet outage. If that happens it doesn't matter how much money you have or how it is insured since no one will be able to access your account and we won't be able to make ANY withdrawals. It's not like a teller can turn around and look up your info in a file cabinet somewhere.

Yeah!! You never know what could happen.