The dollar has been the global reserve currency since the mid-Twentieth Century and has been the national currency of the United States since the American revolution. It has faced its fair share of Hardships as it has gone through many depressions but is still recognized as the global reserve currency but ever since Bitcoin has come to the picture, it looks like Dollar finally has a worthy competitor. But can bitcoin replace the dollar?
At this point, everyone agrees that transporting gold is a bit of a hassle and is too slow for the digital age and digital receipts for gold held in vaults aren’t rustproof. Experts already believe that in the next few decades bitcoin might replace gold as the global asset but replacing dollar is the real challenge
The biggest obstacle in the bitcoins’ rise to dominion is its volatility. Its inconsistent nature doesn’t make it suitable for the role of being the global reserve or currency of a country. But with Wall Street coming into mix and entry of new Futures Warehouses like Baakt might make a difference. Now it seems that the reigns of Bitcoin might change from CryptoGods to Wall street. On the other hand, the dollar is already not liked by the other World powers as One currency dominated by one country poses a threat to their own economies.
Central Banks control the dollar and thus control the economies, they can make or break economies and cryptocurrencies essentially works to eliminate these middlemen. And it is going to be these central banks that are going to prove bitcoins biggest hurdle in domination over the dollar. But that doesn’t mean central banks aren’t looking at Bitcoin alternative, many central banks are already researching the potential of bitcoin and what it can do. But as the government keeps on ignoring the rising behemoth that is the bitcoin experts are skeptical about its future.
As trends indicate dollar might not remain on its current throne and in the next few decades it might get replaced by a new and better cryptocurrency system.