In a recent interview, Dan Held, Kraken’s head of growth, argued that the main cryptocurrency on the market, Bitcoin could become a global reserve in approximately 10 years. This is how he maintained it during an exclusive he had with CoinTelegraph.
For some proponents of Bitcoin, replacing the US dollar as the world’s reserve currency is a lofty goal, albeit achievable. But is it realistic?
Held noted that, in developing countries, Bitcoin is primarily valuable in avoiding censorship. Whereas, in the western world, Bitcoin is attractive as a hedge against central bank money printing.
He assured that the transition to “hyperbitcoinization”, a world in which billions of users adopt Bitcoin, begins with retail users. Then institutional investors and finally the participation of governments.
The permissionless nature of Bitcoin is the fundamental property that is leading this transition. It’s true, free money. It is money that no one but you can control, “he said.
Since the end of World War II, the US dollar has been the world’s reserve currency. Today, more than 59% of foreign bank reserves are denominated in US dollars, according to the International Monetary Fund.
However, the dollar’s position as the world’s reserve currency has been weakened of late.
Some experts agree with Dan Held and believe that Bitcoin will be the next world reserve
In addition to the views of Dan Held, other experts such as Campbell Harvey, a professor of international business at Duke University, previously told CoinTelegraph that, as interest rates rise in the United States, “the riskier it becomes as a currency. backup. At some point, it is too risky and alternatives are sought. ‘ In fact, economic history teaches that the world’s reserve currencies do not last forever.
During August of last year, the business intelligence company MicroStrategy announced that it had adopted Bitcoin as its main treasury reserve asset. While, in early 2021, former Canadian Prime Minister Stephen Harper upped the ante.
Suggesting that not only companies, but also governments, could use cryptocurrency as a reserve. Although as part of a “basket of things” that also included gold and fiat.
The conviction that the future is in cryptocurrencies
For his part, the billionaire American investor Stanley Druckenmiller, founder of Duquesne Capital, bets on cryptocurrencies.
In addition to assessing how well positioned Bitcoin is, he considers that the technology around them will facilitate the future finding an alternative to the dollar as a world reserve currency.
The investor recalled in an interview on CNBC, that “five or six years ago I said that cryptocurrencies were a solution in search of a problem.” And, who has now realized that continued financial stimulus and hedging against inflation encouraged cryptocurrencies.
The truth is that, as well as these specific examples, there are many followers of Bitcoin. They believe that the currency will be so powerful that it will end the hegemony of the dollar. And, it will transform the monetary system from its roots. Based on the theory that we are witnessing the end of a historical cycle.
Expansive policies coupled with high debts and deficits threaten the dollar’s position as the world’s reserve currency. It is here that Bitcoin aims to reclaim and seize the ground.
Can Bitcoin Be the Next World Reserve? Let us know your opinion in our comment section.