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Bitcoin is a black hole of wealth that slowly but surely swallows up all the world’s reserve currencies (dollars, euros …). It has survived death and repeatedly collapsed, making even the legend of Lazarus a simple joke. “It is a bubble,” they shout. “Bitcoin is a dangerous prediction and gamble with little chance of becoming a fixed form of money.”

But Bitcoin unbelievers have not only gone astray, but they have also misunderstood the story 180 degrees. Because the success of Bitcoin is by no means speculation but a certainty. Or at least, as much as anything in the financial world can be definitive.

Why are we so sure? Because we, like any other Bitcoin fan, are aware of the amazing technology behind it. We are also aware of the fundamental value of Bitcoin for the liberation and full ownership of our assets. We believe in its ability to transfer wealth over time.

And perhaps most importantly, we believe that Bitcoin is the best way to survive the tectonic economic change we see today.

And we “believers” in bitcoin are no longer alone. Everyone now welcomes Bitcoin, from private institutions and governments to ordinary investors.

Although the media and the public have focused on the short-term price of this asset, Bitcoin continues to quickly and easily overcome many of its structural and cultural milestones.

There is evidence that Bitcoin has become a form of reserve asset. All you have to do is look good.

Orange standard

You do not need to search hard to find facts about the technical and philosophical miracle of Bitcoin, so we will explain what we see to you.

When Fiat money replaced the gold standard half a century ago, the world’s bankers (including central banks) discovered many ways to devalue money.

President Biden’s $ 3 trillion spendings is just the latest example of paper money inflating. Conversely, as more and more people realize, it cannot be inflated: there are 21 million coins, and there is no way to print or create more.

Another advantage of bitcoin is that, due to its digital nature, we do not need any physical infrastructure to store it. There is no need for any heavily guarded rooms, vans, airplanes, or Fort Knox (a place on U.S. soil where gold reserves are held in high esteem). With just a few clicks, you can transfer $ 1 billion worth of assets.

And the fact that bitcoin is not controlled by a central authority has thwarted any attack (there have been several such ineffective attacks).

In short, this is why bitcoin must become the world’s reserve currency. Now let’s see why we believe this.

Bitcoin’s path to becoming the world’s largest reserve currency

We do not need to speculate about the rise of bitcoin as a reserve currency because it is happening right now. No, governments still do not buy it or issue bitcoins. But who said you need a government green light before investing in a safe deposit box?

Several large public companies have already started converting their paper money into bitcoins. And why not do it? When exactly, according to Michael Silver, CEO of Microstrategy, is holding cash like leaning on a melting ice cube? With companies like Tesla, JP Morgan, and Goldman Sachs buying large chunks of bitcoin and opening new trading desks, monetary policy has lost its strength and value for money. Paper is running out; we have certainly come a long way in converting bitcoin to the world’s reserve currency.

There will be no big, special moment for the Fed to suddenly admit that paper money and related policies were wrong and start buying bitcoins. There is no special logical necessity for such an event to occur. Private companies, corporate treasuries, and ordinary citizens choose bitcoin as their savings investment, and this is where everything accelerates.

There is another key factor in the acceptability of an asset that is rarely mentioned. It is often forgotten that politicians are part of the people. If they are smart, financial advisers will encourage them to use bitcoin to protect the global single currency, the global tax system, and the transparent economic structure of the future. The hypocrisy of politicians is becoming more apparent as governments continue to take a stand against bitcoin, which is itself a bitcoin investor.

Success in converting bitcoin into a reserve currency

None of this means that Bitcoin follows a straightforward path to great hegemony. Even our community disagrees on developing the network: some say the existing structure is great, but others think more needs to be done based on user experience (UX), infrastructure, and financial services. To be done on the blockchain. This controversy over legislation also continues as to whether Bitcoin should experience regulation and regulation or should not (or cannot) be controlled.

There is a certain logic in all these views. But as Bitcoin grows, one thing that will inevitably remain is that efforts to eradicate it will be vain. Countries such as India and Pakistan have tried to ban the holding or trading of bitcoins but have failed due to the impossibility of stopping users’ Peer to Peer transactions.

Our view is that regulation and legislation in this area are inevitable. And we hope that governments will engage in constructive dialogue with those who understand the technical and monetary features of bitcoin. It is not in anyone’s interest to postpone this inevitability. But through interaction and collaboration, we can build a new economy that suits our increasingly digital lives.

Yes, regulation is usually a slow and often dubious process. But the sooner we make clear how governments look at bitcoin (black, white, or gray economy), the sooner we can come up with solutions that benefit everyone. We, along with many other financial experts, look forward to and always want to engage with governments and regulators to work together to make the inevitable process ahead more efficient for all.