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Executive summary: Is Bitcoin The Next World Reserve Currency?

Bitcoin analysts expect Bitcoin to play a significant role for US national security. But can Bitcoin become the next world reserve currency? In this article, I dive into pros and cons of Bitcoin as a strategic asset.
Executive summary: Is Bitcoin The Next World Reserve Currency?

What you will learn:

  • Bitcoin's potential future role for US national security and whether it can become a new global reserve currency.

Executive summary:

  • Massive global change on several fronts could result in crypto playing an increasingly important role in the future.
  • One theory sees Bitcoin becoming a strategic asset for US national security.
  • Bitcoin can defend and nurture existing strengths like incentivizing the use of renewable energy sources.
  • Bitcoin can promote a favorable distribution of power by offering investors digital gold instead of analog gold preferred by states like China.
  • Bitcoin is ideal for defending democratic values: it's "freedom money."
  • The "Bitcoin Milkshake Theory" sees Bitcoin backing the dollar, which sucks liquidity out of other fiat currencies.
  • But Bitcoin will have a hard time becoming the next reserve currency.
  • Fiat would lose its legitimacy if backed by crypto, thus excluding such a possibility.
  • Large-scale mining could turn into a geostrategic liability.
  • Stablecoins may be preferred as a solution thanks to lower daily volatility.
  • Societal breakdown may be a catalyst that delegitimizes all fiat currency.
  • Bitcoin does appeal as "freedom money" and the US should embrace the use of Bitcoin and Bitcoin-related use cases as a financial sandbox in other countries.

Full article:

Is Bitcoin The Next World Reserve Currency? | CoinMarketCap
A look at how global macroeconomic factors could shape Bitcoin’s future — and its potential role in United States’ national security.