If the adoption of Bitcoin becomes massive, its price could rise exponentially and turn it into the world’s store of value. Matthew Pines believes that BTC is a new neutral global reserve asset as no power can control it.
Various economic specialists recently predicted that the pioneering cryptocurrency could become a world store-of-value asset in the coming years. In that way, fiat currencies like the US dollar, the euro, and the yen would take a backseat.
Fred Thiel, CEO of Marathon Digital Holdings, believes that Bitcoin (BTC) is already a reserve currency nobody controls. He noted that it works as an ideal value asset whose use no one can prohibit or kill when confidence has decreased.
The executive said several countries would soon use BTC as a reserve asset and warned about the impact it would have. He estimated that Bitcoin would grow even more, and its adoption would continue to appear in all aspects of commerce.
Avik Roy, the president of the FREOPP, stressed that the medium of exchange is not what matters but the store of value. He clarified that the US dollar, the euro, and the yen lost their wealth as a store of value. That is due to inflation, although it has been low, and the policy of printing banknotes, which suggests a new economic world order.
Contrary to the Euro, the US Dollar, and the Yen, Nobody Controls Bitcoin
Roy summarized that the fiat currency system was the problem. The expert stated that the proportion of Treasury bonds from foreign governments and investors has decreased over the past 15 years. Meanwhile, the participation of the US Federal Reserve (Fed) has grown.
He considers those curves might cross and that the Fed might become a leading holder of Treasury bonds in 10 years. Besides, he commented that the Latin American monetary policy is unsustainable and dangerous.
In that context, Bitcoin could transcend the US dollar, but it would be a challenging period with tremendous economic and social dislocation.
Bitcoin as a Store of Value Changes the Known Monetary System
Matthew Pines, a member of the Bitcoin Policy Institute, considers BTC a new neutral global reserve asset. In other words, no power controls it, but individual citizens are in charge of directing it. That is driving the biggest economic innovation engine that is changing the world.
Pines also highlighted that Bitcoin aligns with US values as it counteracts its adversaries, so the government should encourage it. He mentioned that China has tried to use its national currency for exchanging oil for years, supported by Russia.
That situation would force countries to keep reserves in their national currency to buy oil. That would devalue the US dollar as a world asset and change the monetary system. Researcher Lyn Alden clarified that it all comes down to understanding the properties of real money, and BTC seems a viable option.
Alden stated that Bitcoin could outperform gold, which large capital groups would realize when its price reaches several hundred billion US dollars. If that happened, it would become a significant part of the reserve assets of several countries, organizations, and individuals.
By Alexander Salazar
