Last week we ran an article stating that the U.S dollar could indeed be replaced by Bitcoin to become the world’s reserve currency. Now, a deeper dive into that “implausible(?)” idea. Be open minded and remember, no one thought people could fly (hello airplane). Or go to the moon either. Maybe just a few bitcoins in the wallet might be wise? Much more below.
Bill Taylor/Fintek Capital
“While most people today are not ready to give up their bank accounts for Bitcoin wallets, it will be a crypto currency that’s going to replace the US dollar. The dollar’s death will be on blockchain and I believe it will be Bitcoin that dethrones the dollar.
In an article on Medium, Facebook isn’t just thinking about just creating his own crypto, it wants to replace the U.S. dollar according to Ted Livingston. The founder and CEO of the Kik messaging app, predicted Facebook’s crypto coin could eventually replace the US dollar.
After the end of WWII, the U.S. dollar has dominated the global financial system, just like the British pound before it, and the Spanish dollar before that. But, some of the major economies around the world may want a new digital currency to function as the reserve. The US dollar’s share of global central-bank reserves hit a 5-year low, according to the International Monetary Fund.
How much U.S. currency is out there? According to the Federal Reserve Board of Governors, approximately $1.70 trillion in circulation as of January 23, 2019, of which $1.66 trillion was in Federal Reserve notes. That figure could drop to as low as $500 billion within 10 years, as Bitcoin, and cryptocurrencies in general, become more widely used for transactions.
Bitcoin, Facebook Coin or another crypto could be a clear alternative to traditional government-backed currencies, at a time when governments’ abilities to manage their finances are coming into question…”
Full Story at DailyFintech.com