Could Bitcoin Replace the US Dollar as the World’s Reserve Currency?
Date: 2024-10-16 Author: Henry Casey Categories: CRYPTO PAYMENTS
Host Rob Nelson and BeL2’s Head of Operations Sasha Mitchell delved into the matter, assessing its impact on the global financial system and economic stability.
Rob Nelson emphasized that moving to a Bitcoin-based financial system could be a significant step forward, as all major currencies could align around a decentralized currency. He noted that this is not just a fad, but a major change in the global economy: “This is a really big deal. I know it’s early days, but it could be a game changer.”
Sasha Mitchell pointed out the benefits of Bitcoin, including its lightweight nature and guaranteed scarcity. “Bitcoin is so lightweight that it’s easy to move around, and it can store value by ensuring its scarcity,” he explained. Mitchell also suggested that there will be multiple currencies in the future, including ones backed by assets like silver and gold.
When asked about the need to move away from the dollar system, Mitchell highlighted concerns around security and inflation. He noted that the US dollar has lost more than 25% of its value over the past four years, highlighting the shortcomings of a financial system that he believes is built on “an inflationary spiral that will only get worse.”
President Trump has reiterated his intention to impose new tariffs on goods from countries that abandon the dollar, highlighting the ongoing political tensions surrounding the use of the dollar in global trade.
Looking ahead, Mitchell believes that blockchain technology can lead to greater efficiency and the opening of new markets. “If we have a stable currency backed by the digital gold of Bitcoin, then not only will we be able to fight inflation, but we will also be able to open up a lot of new markets that we can trade in,” he said. In his opinion, the transition to a stable currency based on Bitcoin could be “a really beneficial step for all of humanity.”
