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Bitcoin World Reserve Currency

Bitcoin Price Will Skyrocket If It Becomes Worlds Reserve Currency By 2020

Bitcoin Price Will Skyrocket If It Becomes Worlds Reserve Currency By 2020

Bitcoin Price Will Skyrocket If It Becomes Worlds Reserve Currency by 2020 Recently, the governor of the Central Bank of the UAE reversed an earlier statement by the government which contained all virtual currencies and transactions thereof are prohibited. The actions of the regulatory agencies as it concerns this disruptive technology shows an element of panic and confusion. The knee-jerk approach of governments around the world towards Bitcoin and Blockchain leave room for a lot of questions. The actions of the regulatory agencies as it concerns this disruptive technology shows an element of panic and confusion. Just recently, the governor of the Central Bank of the UAE reversed an earlier statement by the government which contained all virtual currencies and transactions thereof are prohibited. In a statement to Gulf News clarifying the regulation, Mubarak Rashid Khamis Al Mansouri, Governor of the Central Bank, said: These regulations do not cover virtual currency, which is defined as any type of digital unit used as a medium of exchange, a unit of account or a form of stored value. In this context, these regulations do not apply to Bitcoin or other cryptocurrencies, currency exchanges or underlying technology such as Blockchain. The UAE is not an isolated situation because we have seen similar developments in Nigeria , where the Central Bank, after advising the public against investing in digital currencies returned a few days later with a circular requesting banks to produce nominees into a committee that will produce the policies and guidelines that will guide Blockchain regulation in Nigeria. A number of reasons have been identified for the perceived back and forth behavior of government towards Bitcoin and Blockchain. Michael Vogel , CEO of Netcoins sees the i Continue reading >>

Currencies - What Is Needed For Bitcoin To Become The Reserve Currency Of The World? - Bitcoin Stack Exchange

Currencies - What Is Needed For Bitcoin To Become The Reserve Currency Of The World? - Bitcoin Stack Exchange

What is needed for Bitcoin to become the reserve currency of the world? Bitcoin's characteristics seem to make it a prime candidate as a reserve currency, given it has fast transactions to anywhere in the world at a low cost with little to no price manipulation or export/import controls. Imagine a traveller arriving in a foreign country, having bought 100 Bitcoins in his country. Rather than go through a middle-man currency exchange, he finds someone who wants Bitcoins (or even a Bitcoin ATM) and sell his Bitcoins for local currency. When he is ready to leave, he simply sells back his local cash for Bitcoins without being hit twice by the currency exchange's transaction fees. What would have to happen to make this a reality? Is it feasible? You would be hit twice by the currency exchange anyway if you were to buy Bitcoins for your local currency, and then buy the foreign currency with Bitcoins. If you would perform those transactions at exchanges ran by large companies, there is little difference from a traditional model. If instead you would use exchanges like Mt.Gox, the spread would go back to the people, rather than a company. The spread might be smaller or bigger, it all depends on the market. Banks and companies like Visa often allow you to withdraw foreign money at a local ATM in the foreign country, sometimes even not charging you anything for the operation asides the money conversion spread. You perform only one conversion for the bulk of your money, and whatever is left over you can sell back at the money exchange. So by bypassing Bitcoins, you can save money (if the banks operated at a comparable margin as the Bitcoin exchanges, be they owned by a single company or not). Most Bitcoin exchanges offer you money withdrawal to a bank local to the currency. If yo Continue reading >>

Bitcoin Has Little Shot At Ever Being A Major Global Currency

Bitcoin Has Little Shot At Ever Being A Major Global Currency

Bitcoin has little shot at ever being a major global currency Oracle of Omaha, Warren Buffett, said on CNBC Wednesday morning that the speculation in bitcoin, and other cryptocurrencies, "will have a bad ending." Cryptocurrencies have fallen 10 percent to 20 percent in value in recent days. Anytime bitcoin is mentioned, it is expressed in U.S. dollar terms. A customer uses a Bitcoin machine in Piccadilly Circus in London. With cryptocurrencies still in the news, tumbling 10 percent to 20 percent in recent days thanks in part to a change in calculating how the coins are valued, the debate rages on as to whether bitcoin , ethereum, ripple, bitcoin cash and litecoin are, in fact, money. The Oracle of Omaha, Warren Buffett, said on CNBC W ednesday morning that the speculation in bitcoin, and other cryptocurrencies, "will have a bad ending." Appropriately, dogecoin, a digital currency that began as a joke based on an internet meme, has risen sharply in recent days and hit a total value of $2 billion. By Wednesday it had retreated to a market value of about $1.5 billion, according to CoinMarketCap. But rather than seeing all these digital currencies as a small part of a larger system known as blockchain, I am predisposed to view them as just speculative tokens in a cryptocurrency bubble that has inflated more quickly than any other in financial market history. Admittedly I'm green with envy for failing to foresee the explosive rally in the price of bitcoin when it was first brought to my attention several years ago. Having said that, there are many things I find quite ironic about how bitcoin and other "cryptos" are described. First, they are largely denominated, or discussed, in U.S. dollar terms. If, however, you are buying and selling these currencies on the various excha Continue reading >>

Bitcoin: The Next World Reserve Currency? | Strategic Money Report

Bitcoin: The Next World Reserve Currency? | Strategic Money Report

Stay informed about the markets and economy with Strategic Market Notes. You first download a Bitcoin wallet mobile app, such as Blockchain, and set a password. You press your phone against the glass and a QR code appears; then you follow the instructions, to feed in cash only. Then the machine sends Bitcoins to the phone. Now maybe I am nave, and thats a strong possibility for sure. However, do you have a picture of this? Have you ever walked the streets in New York City? I have a color glossy of folks carrying multiples of $1,000 cash to place into a machine to get Bitcoins. They had better quadruple the police force in the city. Cash grabbing muggings are about to be a growth industry. But get an idea of the growth here. The first 1,000 merchants were first noted in September 2012. By September 2013, there were 10,000 merchants. At 1,000 per week, the Bitcoin is going to double the 10,000 number every two and a half months, and this growth is even more dynamic in China, India, Russia, and South America. Ironically, the financial press has been singing the demise of the U.S. dollar due to Fed money printing for 5 years. The money printing has and still is amassing incredible debt denominated in dollars. Now a cyber-currency appears and has had a 9,000 percent growth in value in less than two years. The dollar still floats against a basket of other paper IOUs around the world. Meanwhile the Bitcoin, if this continues, may devalue and debase them all. They have outlawed the ownership of gold in India. However, they are allowing a cyber-signal called Bitcoins. China lives in constant defiance of the power of the U.S. dollar, so they allow Bitcoins. Ditto for Russia so they allow the use of Bitcoins. Inflation in South America is a spectator sport only exceeded by soccer Continue reading >>

Can Bitcoin Become A Global Reserve Currency? John Oliver Weighs In

Can Bitcoin Become A Global Reserve Currency? John Oliver Weighs In

Can Bitcoin Become a Global Reserve Currency? John Oliver Weighs In Can Bitcoin Become a Global Reserve Currency? John Oliver Weighs In The future value of Bitcoin has always been an intriguing topic of debate. Any prediction associated with this notoriously volatile cryptocurrency will always generate a backlash. John Oliver, the host of HBOs Last Week Tonight, is a bit on the fence in this regard. More specifically, he claims Bitcoin can be either worthless or billions very soon. It is always refreshing to see a new talk show regarding cryptocurrency. Although this is just one episode of Last Week Tonight, it does raise a lot of interesting questions. More specifically, John Oliver touched upon some very intriguing topics during that episode. One of his topics revolves around the Bitcoin price, which is of great interest to many people around the world. More specifically, John Oliver states the obvious truth about Bitcoin. Its price will either be zero or billions in the next few years. This is the most logical assumption when it comes to the future Bitcoin price right now. It is a big gamble to invest in cryptocurrrency. That also applies to any other investment people make in other industries. John Oliver wants to warn people about the risks. Markets are volatile and tend to swing either way. It may not necessarily be a global currency anytime soon either. However, Oliver acknowledges it may happen, for all we know. We see more efforts towards regulating Bitcoin, which also gives it more legitimacy in the long run.Until that is in place, however, Bitcoin will always remain a niche market, for obvious reasons. If John Oliver is to be believed, a billion-dollar value for Bitcoin is not impossible. Achieving that high value will not be easy whatsoever, though. The way Continue reading >>

Trace Mayer Tips Bitcoin To Replace Dollar As World Reserve Currency

Trace Mayer Tips Bitcoin To Replace Dollar As World Reserve Currency

Trace Mayer tips Bitcoin to Replace Dollar as World Reserve Currency Early Bitcoin investor and evangelist Trace Mayer has made a compelling case for the digital currency to be given world reserve currency status. The host of his own podcast, he started investing in bitcoin in early 2010 and has been publicly promoting the cryptocurrency since 2011. Trace Mayer came across bitcoin while writing a paper on the topic of History of money and currency in American Law during his American legal history class. Not too long after that, he began his own podcast titled The Bitcoin Knowledge Podcast . In the past, he has repeatedly stated that bitcoin will someday replace traditional fiat currency. While gold is sound money and limited in supply, it doesnt move well. On the other hand, the US dollar enjoys an enormous amount of liquidity but does not have a supply cap. According to Mayer, this is where bitcoin can be used since it combines the best of both worlds. If introduced as an equity-based system, it has the potential to replace fiat currencies. Mayer further states that people are no longer tied to traditional ways of finance and banking via bitcoin. They are also willing to choose new money which is more sound, reliable and isnt confined by borders of countries. He continued, stating that just as newspapers were replaced by blogs and books by e-books, bitcoin could do the same to fiat. The blockchain technology, highlighted in bitcoins whitepaper , is independent, robust and most importantly, decentralized. No countrys central or reserve bank, government or even non-governmental organization can fundamentally influence the price of bitcoin. Currently, the dollar is viewed as the worlds reserve currency since banks across the world have dollar reserves to manage their cur Continue reading >>

Could Cryptocurrencies Take Over The Us Dollar As World Reserve Currency?

Could Cryptocurrencies Take Over The Us Dollar As World Reserve Currency?

Could Cryptocurrencies Take Over the US Dollar as World Reserve Currency? Ashour Iesho November 17, 2017 7:00 am The total cryptocurrency market managed to reach a market valuation of over $200 billion this year, and this has caught the attention of the entire finance world. Cryptocurrencies were the clear winner of 2017. Major cryptocurrencies like Bitcoin, Ethereum and Litecoin have massively increased in value over the year, effectively outperforming investments like stocks, commodities, and bonds. The incredible performanceof cryptocurrencies has given many skeptical people in the finance and business community more confidence in decentralized currencies. In September2017, Christine Lagarde, the Managing Director of the International Monetary Fund, stated that cryptocurrencies could potentially replace most fiat currencies in the future. The biggest finance and technology corporations are mostly focusing on the technology that powers most cryptocurrencies, the blockchain. Some experts believe that the blockchain technology could greatly benefit the traditional finance system, without having to completely replace it with Bitcoin. Bypassing Sanctions with Cryptocurrencies The finance and business communities arent the only ones that are closely watching cryptocurrency space. Several governments have shown interest in digital currencies and their underlying technology. The Estonian and Tunisian government have already experimented with their own fiat-based cryptocurrencies. The Russian government sees another use casefor cryptocurrencies like Bitcoin. In the last couple of years, Russia has been under heavy financial sanctions from western countries. After Russia annexed Crimea, many politicians suggested banning Russia from accessing the international banking system, Continue reading >>

3 Answers - Will Bitcoin Replace Dollar As The World Primary Reserve Currency?

3 Answers - Will Bitcoin Replace Dollar As The World Primary Reserve Currency?

Will Bitcoin replace dollar as the world primary reserve currency? In short - probably not as control over currency and monetary policy is deeply political, and the use of it requires existence of many financial instruments in this currency that provide deep liquidity. But I think it is possible in theory, I am not sure this would be the best possible solution. I think that we need to design a new better system of global reserve currency, that will handle the global surplus recycling where the process of adjustment is compulsory for the debtor and voluntary for the creditor will be replaced with one in which the force of adjustment falls symmetrically upon debtors and creditors. [1] I think the purpose of decentralized digital currency like Bitcoin is to provide much needed competition for the fiat currencies, which will make the whole monetary system a lot more fair. In other words, Bitcoin will function as gold before the banks created paper futures contracts that allowed to manipulate the price of physical gold. I would say no because Bitcoins ability to act as a reserve currency isnt its core strength or purpose. From my understanding, it was created to allow peer-to-peer transactions online without intermediaries and were untraceable. These are features which some individuals might appreciate, but arent necessarily useful for larger institutions. What large institutions look for in a reserve currency is security and price stability. Bitcoin has so far not met those criteria. There have been several high profile cases of theft involving millions of dollars worth of Bitcoins. As far as I know, stolen Bitcoins have never been recovered. As for price stability, Bitcoin simply hasnt been around long enough to build a user base large enough to stabilize the market and p Continue reading >>

Why Cryptocurrencies Could Push The Dollar From World Reserve Currency Status

Why Cryptocurrencies Could Push The Dollar From World Reserve Currency Status

Why Cryptocurrencies Could Push The Dollar From World Reserve Currency Status {{article.article.images.featured.caption}} Opinions expressed by Forbes Contributors are their own. The author is a Forbes contributor. The opinions expressed are those of the writer. This story appears in the {{article.article.magazine.pretty_date}} issue of {{article.article.magazine.pubName}}. Subscribe This year, blockchain technology has skyrocketed in popularity -- and for good reason. Blockchains have the potential to decentralize how trust is guaranteed in anything that can be stored digitally, which includes money, data, identity and ownership records. It is hard to exaggerate the potential disruption of legacy institutions and business models. In late September, the head of IMF, Christine Lagarde, cautioned that cryptocurrencies can displace central banks, conventional banking and national monies in the long term. What has gotten less attention, however, is how blockchain will impact international politics in general and economic statecraft in particular. A key foundation of the predominance of the West, and particularly the United States, is the reliance on economic power. It is codified in the Bretton-Woods institutions and the role of the U.S. dollar as the world’s reserve currency. Since all financial actors need to function on the U.S. market, the U.S. treasury’s domestic powers are in effect international. If they designate an entity a money-laundering concern or suspect of terrorist activity, the possibility to do business or transfers would vanish. Blockchain-based cryptocurrencies, however, threaten to disrupt this foundation by decentralizing the operation of the financial system outside sovereign states’ control. This ties well into the goals of revisionist states, Continue reading >>

What On Earth Is Going On With Bitcoin? - The Atlantic

What On Earth Is Going On With Bitcoin? - The Atlantic

A bar of gold. A disk of iron. A chain of beads. A card of plastic. A slip of cotton-linen paper. These things are worthless. One cannot eat them, or drink them, or use them as a blanket. But they are valuable, too. Their value comes from the simplest thing. People believe they are money, and so they are. If every currency is a consensual delusion , then bitcoin, a digital cryptocurrency that changes hands over the internet, feels more like a consensual hallucination on psychedelic drugs. The concept of bitcoin was born in a detailed white paper published in late 2008 by a pseudonymous Satoshi Nakamoto. By 2013, one bitcoin was worth $12 . As of this writing, its worth more than $10,000. Its value has doubled in the last two months alone. For any currencys value to increase by 100 percent in eight weeks is, to use a technical term, bonkers. If the Japanese yen or American dollar did the same, their economies would plunge into an infernal deflationary spiral. Throughout history, currency has taken one of two forms : physical assets, like gold or beads, and fiat currency, like government-backed paper and coins. Bitcoin and its brethren introduce a third category: digital currencies that run on a combination of game theory, economics, and cryptographythus, cryptocurrencies. If all money is the sharing of an illusion, bitcoin wants to build a better way to share it. Like many people, Ive long regarded bitcoins rise with both wonder and confusion. To help me make sense of it, I started calling cryptocurrency experts and academics to ask, is bitcoin just a dumb bubble, like 17th-century tulip bulbs ? An investment hedge, like gold? A currency, like dollars? The answers I got werent satisfyingly unanimous. I heard all of the above and none of the above and nobody knows for su Continue reading >>

Bitcoin To Replace The Us Dollar As The Peoples Reserve Currency

Bitcoin To Replace The Us Dollar As The Peoples Reserve Currency

Bitcoin to Replace the US Dollar as the Peoples Reserve Currency 45% of the worlds population is under 30 and living in an emerging market. Its a startling fact, and with the population on track to reach 11 billion by 2100, that number is only going to grow. Though the term emerging markets is a catch-all masking enormous variations in economic development there is no doubt that large numbers of young adults are going to face increasingly uncertain times of political and economic unrest. In the past 25 years over 21 countries have suffered incidents of severe inflation. In these cases, as the national currency became increasingly devalued, either due to government over-printing or large injections of counterfeit bills, citizens have privileged foreign currency in order to maintain the import of goods. The U.S dollar, as the worlds leading reserve currency has been that money of choice. Approximately 65% of all U.S. dollars are currently being used outside the United States, 80% of trade finance was conducted in dollars and close to 85% of forex trade volume involved the dollar. But dollars are hard to come by in legal ways. Aggravated by limited foreign reserves and fixed exchange rates pegging the national currency at artificially high rates to other currencies, black market currency trading has flourished. Since the beginning of 2016, Egypts central bank has closed 48 out of 115 licensed exchange bureaus for trading at black market rates. In November 2016, security forces in Ethiopia reportedly went house to house it the countrys capital of Addis Ababa seeking illegal exchange operations. Finally, in Nigeria, dealers trading at an exchange rate weaker than the government sanctioned rate risk running afoul of Nigerian intelligence services. Not all are suffering from Continue reading >>

Can Bitcoin Become A Major Reserve Currency By 2030?

Can Bitcoin Become A Major Reserve Currency By 2030?

Can Bitcoin Become a Major Reserve Currency by 2030? According to researchreleased in late 2015, U.K.-based Magister Advisors, a financial institution which focuses on facilitating mergers and acquisitions in the technology sector, explained that bitcoin could become the sixth largest reserve currency by 2030. Bitcoin has experienced exponential growth since 2009 based on many indicators including user base, trading volume, price, market cap and global adoption. In the last year, some of the largest financial and technology conglomerates including JPMorgan, Goldman Sachs and Fidelity Investments have grown increasingly optimistic towards bitcoin. Traditional market operators such as the Chicago Board Options Exchange (CBOE), the largest options exchange in the US, are in the process of integrating bitcoin to enhance liquidity for large-scale institutional and retail investors. Earlier this month, Ed Tilly, CBOE Holdings Chairman and CEO, stated: We very much look forward to responding to the growing interest in cryptocurrencies through the creation of bitcoin futures traded on a regulated derivatives exchange, with the many expected benefits that this brings, including transparency, price discovery, deep liquidity and centralized clearing. Over the past few years, an increasing number of investors and companies have adopted bitcoin as a digital currency and as a safe haven asset, rather than as a speculative investment and active user bases of platforms such as Coinbase and Blockchain have drastically increased. For Bitcoin to surpass the market cap and consumer base of reserve currencies, it would need to evolve and ultimately solve its scaling issues. Currently, many holders are considering bitcoin as a long-term investment, rather than as a currency. To compete with Continue reading >>

Road To $1m Bitcoin: Reserve Currency And The Crypto Market.

Road To $1m Bitcoin: Reserve Currency And The Crypto Market.

Road to $1M Bitcoin: Reserve Currency and the Crypto Market. Put your tinfoil hats on and get your decoder rings, Its time to talk about the future. I want to tell you why I think BTC is the newest reserve currency. Im not the only one who thinks so . Its why holding some actual BTC could be the smartest thing youll ever do. Meet BTC, a Shady Lady Looking to Go Good. Last week I pitched bitcoin as more than a cryptocurrency . Its also going to be a very good medium of exchange for large sums of wealth as an intrinsic tool. To put it even more simply, as an actual currency, I bet well see the actual rate continue to climb, making the trading value look like a candle next to the sun. Im talking the long game. Years, not months. If the elder gods (e.g. ultra-rich, shady states etc.) get over their fear of BTC and embrace it, itll make USD look like CAD. In last weeks piece I go into some detail about why I think BTC will go that way, but theres an even bigger factor I hadnt considered which hit me like a ton of bricks. If youre a stranger to the world of currency markets and economics, Ill do a quick flyby. A reserve currency is what everyone agrees on will be used as the standard in trade. The one youre most familiar is the U.S. Dollar. Its the international standard of trade, and pretty much everything else in the real world is pegged to its value. Every government, and major economic actor holds reserves of U.S. currency to back up their economy, and facilitate foreign purchases. So if you dont have faith in the Latverian Doombuck, it doesnt matter, because the government pays with U.S. currency from its reserves. This concept is applied everywhere even micro economies. I see people using certain loyalty programs to swap and trade points, and they are all calculated in Continue reading >>

Economist Barry Eichengreen On The Dollar Losing Its Status As A Dominant Reserve Currency And The Future Of Bitcoin Quartz

Economist Barry Eichengreen On The Dollar Losing Its Status As A Dominant Reserve Currency And The Future Of Bitcoin Quartz

For at least 70 years, the US dollar has been the worlds dominant currency. Central banks around the world hold a large portion of their reserves in the US currency, while private companies use it for international transactions. The trade in US Treasury bonds is the worlds deepest, most liquid market. As a result, the American economy benefits from a currency that greases the wheels of the global financial system. This dominance is historically unusual, according to a new book by Barry Eichengreen, an economics professor at the University of California, Berkeley and expert in global currency systems, and European Central Bank economists Arnaud Mehl and Livia Chiu. In How Global Currencies Work: Past, Present, and Future (Princeton University Press), published this month, they challenge the traditional winner-take-all view that there can only be one dominant reserve currency at a time. This became a common view over the decades when the British pound dominated before the US dollar took over. In the future, some believe, the Chinese renminbi is destined to lead. Using new evidence on central bank reserves from the 1910s to early 1970s, with particularly focus on the interwar period of the 1920s and 1930s, Eichengreen and his co-authors find that reserve currencies can and do coexist. For example, in the period between the wars, it seems the British pound and the US dollar shared reserve currency status more or less equally, depending on the year. Before the First World War, even though sterling was the most important currency, the French franc and German mark were internationally significant, too. From this vantage point, it is the second half of the 20th century that is the anomaly, when an absence of alternatives allowed the dollar to come closer to monopolizing this i Continue reading >>

3 Answers - If Bitcoin Replaces Gold As The Ultimate Reserve Currency, How Much Would One Btc Cost In Usd?

3 Answers - If Bitcoin Replaces Gold As The Ultimate Reserve Currency, How Much Would One Btc Cost In Usd?

If Bitcoin replaces gold as the ultimate reserve currency, how much would one BTC cost in USD? Demand/Supply curve for BTC is not really known - the history is too short. My conservative estimation is x200 of the current price. There are $10T worth of gold in the world. Current market cap of BTC is 35B. Before you start to accumulate the BTCs consider the following: Gold has some uses beyond store of value Uses of Gold in Industry, Medicine, Computers, Electronics, Jewelry Gold is hard to keep, but it is indestructible. In case of BTC if you lost the hash (password) of your wallet you and the rest of the world lost the coins. You can find on the forums people ready to pay 100BTC bounties for cracking their passwords. Losing BTC is NOT the same thing as burning paper money. The list goes on and on. Be careful out there (update here) especially in light of news that Bitcoin could hit $100,000 in 10 years When I see news like this on CNBC the only things I can consider are short or stay aside. BTC is not a shortable instrument. It leaves staying aside. Continue reading >>

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