It’s Highly Likely Bitcoin Will Become the Reserve Currency
Best selling author and prominent Bitcoiner Jeff Booth believes Bitcoin will become the world’s reserve currency and all fiat currencies will be pegged to it.
The author of The Price of Tomorrow: Why Deflation is the Key to an Abundant Future was interviewed on Cambridge House International podcast and was quizzed about his beliefs for Bitcoin and the macro economy going forward.
Booth, a well-known Bitcoiner, claims the Federal Reserve’s monetary policy would lead to it losing all credibility, and would lead to Bitcoin’s rise.
‘All of the printing is going directly into asset prices and it’s being robbed from the greater economy,” he described. “What’s coming next is MMT, helicopter money, and everything else. And once the Fed loses its credibility then all bets are off.’
The Federal Reserve has openly said it would print whatever it takes to get through the crisis that is ensuing.
And although the Covid pandemic is being blamed, the truth is it’s Central Banks’ past monetary policy that has created the bull in the China shop, which Booth said would only continue.
The Federal Reserve recently pledged to keep interest rates near zero for several years, saying it would do everything to push up inflation. Something Booth believes will ultimately lead to Bitcoin overhauling all fiat currencies and becoming the next reserve currency.
‘Interest rates are going to continue to go down until currencies fail,’ claims Booth who says a diversified portfolio with Bitcoin and gold is the way forward.
‘I am much more bullish on Bitcoin for a variety of reasons. I think it could be the new gold … Bitcoin works on a network effect. … It should keep on growing and I think one day other currencies will be pegged to Bitcoin … I think it’s highly likely that Bitcoin becomes the reserve currency.’
Bitcoin Is A Better Bet Than Gold
Although Booth says a diversified portfolio with both Bitcoin and gold was the best way forward, the best selling author did say Bitcoin was a better bet than gold.
‘Bitcoin is a better bet than gold, and everyone’s portfolio must include some. Gold is valued where it is for the exact same belief that it will be pegged to currencies,’ Booth warned.
‘When currencies break and safety becomes an issue, portability of gold is really difficult. The portability alone of Bitcoin for safety reasons becomes paramount.’
The ‘Bitcoin better than gold debate’ is backed by MicroStrategy CEO, Michael Saylor, who recently invested $425m of MicroStrategy’s treasury into buying Bitcoin.
Saylor, who likened his $500m cash treasury to a ‘melting ice cube’ looked into both gold and Bitcoin to stop the value of MicroStrategy’s books melting away.
Speaking recently, gigachad Saylor called Bitcoin the best security ever created in the history of the world. Saying human ingenuity could weaken the value gold if there was enough incentive.
‘Bitcoin is an infinitely hard asset, whereas gold can be produced by humans given the right incentive,’ said Saylor.
‘If Bitcoin goes up by a factor of ten, no amount of investment in Bitcoin mining can produce more Bitcoin. If I put $100 billion into gold mining, I will produce more gold. … If I put $100 billion into Bitcoin mining, I will produce no more Bitcoin, I will just produce more security.’
What Is The Biggest Challenge To Bitcoin Becoming a Reserve Currency?
While Jeff Booth and Michael Saylor’s confidence in Bitcoin is refreshing to hear, what is the biggest challenge to Bitcoin actually becoming a reserve currency?
Booth believes governments banning Bitcoin is Bitcoin’s biggest challenge. However, he did play down the idea, saying it was unlikely all governments would come together and ban Bitcoin.
‘I see that as a very low probability, because of game theory,’ said Booth. ‘So in a competitive world where every region needs to attract wealthy people, businesses. If regions ban it, other regions accept it faster.’
No government in their right minds are going to drive out the latest innovation, therefore. And the likelihood for competing governments all coming together to ban Bitcoin is highly unlikely.
Bitcoin Is Slowly Becoming A Reserve Currency
Bitcoin has grown from nothing to a $200 billion monster in just eleven years.
It’s become a cliché, but Bitcoin is finding its value, and as it does, it’s already grown bigger than most national currencies.
Bitcoin is already a reserve currency for all cryptocurrencies. And as it continues to grow along with the Central Banks’ “debt ceilings” Bitcoin will slowly consume national GDPs.
Bitcoin as a global reserve currency might take longer than some think, but with the speed at which governments are printing free money, it just might not.
Author: Tommy Limpitlaw
Source: Bitcoin Maximalist: It’s Highly Likely Bitcoin Will Become the Reserve Currency