Can Bitcoin Become the Next Global Reserve Currency?

Can Bitcoin Become the Next Global Reserve Currency?

10.01.2021: One of the most interesting trends surfacing in the crypto industry today is the increasing likelihood of Bitcoin emerging as the next global reserve currency – something that Bitcoin fundamentalists have been preaching for the last decade.


One of the most interesting trends surfacing in the crypto industry today is the increasing likelihood of Bitcoin emerging as the next global reserve currency – something that Bitcoin fundamentalists have been preaching for the last decade.

 

Image source



With the combination of transparency and decentralized trust brought on by the blockchain, individuals and companies across the world have had the opportunity to participate in a free financial system since the emergence of Bitcoin some twelve years ago.



Since the dawn of Blockchain, trust in this trustless system has been slowly rising with a diverse range of individuals, institutional investors, and even world governments investing in the technology and the various tokens in circulation today. One result of this has been the free flow of liquidity across borders in a remarkably revolutionary way – satisfying the ever-growing need for a more efficient global financial system.



Mr. Yoon Kim is an accomplished and dynamic crypto analyst and strategist. He successfully built the TMT sector of Tremblant Capital and helped the company increase its AUM from $200 million to $5 billion in five-years’ time. He then launched Vestry Capital, a global TMT equity fund as the head of which he served as an advisor and consultant to various hedge funds and blockchain projects.



With his 20 years of experience in investing and in the blockchain industry, Mr. Kim acutely understands these shifts in the global financial system.



For that reason, one of the key topics of conversation during The New Normal of Blockchain & Cryptocurrency panel which AIKON organized in late October was “where the future lies for the USD and its long-term position as the world’s reserve currency”.



Mr. Kim indicated that the USD losing some of its standing in the global financial system and possibly its status as the reserve currency as an inevitable product of blockchain’s accessibility and decentralization.



As Mr. Kim has pointed out, the current financial system has been in place since World War II – 75 years now! On average, global financial systems have typically lasted for ~70-80 years each. We are, then, coming to the end of an era and can stand with bated breath awaiting the next financial revolution.



Moreover, history has shown that significant global events often precede the breakdown of institutionalized financial systems. For the Pax Britannica, it was World War I. For the global financial system, we have today, it may very well be the impact of COVID-19 on the world economy.



Having been a staple of the global economy, and considering the turmoil, the US has endured throughout 2020, USD is in serious danger of being dislodged from the position of power it has enjoyed over the last three-quarters of the 21st century.



Given the amount of influence that US politics now has on the rest of the world, and being mindful that the level of engagement that USD (as a global reserve currency) will have on the rest of the world after the presidential election will probably never reach the levels from 40 – 50 years ago when it was at its peak. With the decrease in the level of engagement of the US with the world economy after the Soviet Union dissolution, what we see now are the effects of the politics that took 20 years to materialize.



In that sense, Mr. Kim pointed out that it is very probable that USD is about to be dethroned as the most important currency in the world.



And while there are those who would like to see the Chinese RMB take its place, Mr. Kim considers this very unlikely to happen. For one, dethroning USD from the position of the global reserve currency would put a significant amount of pressure and responsibility on the Chinese financial system, responsibilities the country seems to be shunning presently. For instance, China has been accused of intentionally increasing demand which then leads to an increase in the prices of international commodities.



Therefore, the question is what will supplant USD as the global reserve currency or at least become an alternate reserve currency running in parallel with USD?



Mr. Kim stated that Bitcoin seems to fit perfectly, especially taking into account the timing of its rise, as well as its ability to cross borders with very little effort.



As political and economic relations between the US and China continue to collapse, it is becoming increasingly unlikely that either the USD or RMB will be viewed as a viable global reserve currency going forward.



Bitcoin may prove to be the thing that both nations, as well as the rest of the world, decide they can live within the upcoming decades.



While the Chinese government is actively restricting crypto trades, there is massive support within the government for cryptocurrencies and blockchain. This implies that they have a long-term strategy in place, where Bitcoin would be used to dislodge the USD as the global reserve currency.



In the same way, we’re seeing the causality of the US global economics politics conducted in the past 20 years and its effect on the situation now, there is a good chance that 20 years from now we will have Bitcoin as the reserve currency of the world simply because it will not be controlled by any one nation and its financial system.



Should Mr. Kim’s predictions come to be realized, individual and corporate players in this new market that is quickly gaining momentum should be preparing for the shift.





This article originally appeared on aikon.com

Permanent-URL: http://www.automobilsport.com/can-bitcoin-become-next-global-reserve-currency---218056.html

10.01.2021 / MaP

More News

Kia Motors America announces organizational change
08.01.2021
Bill Peffer Steps Down as Chief Operating Officer and Executive Vice PresidentKia Motors America’s (KMA) chief operating officer and executive vice president, Bill Peffer, resigned yesterday in conjunction with his pursuit of a new opportunity in the automo more >>
Trucks & Electrified Vehicles Propel American Honda to Strong 2020 Finish
05.01.2021
  American Honda     Q4     Total 366,068 -8.9%Cars 138,925 -13.4%Trucks 227,143 -5.9%    ACURA Q4Total 41,329 -7.3%Cars 11,069 -8.3% more >>
Merger of FCA and Groupe PSA approved by shareholders
04.01.2021
FCA and Groupe PSA expect to complete the combination on January 16, 2021Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) and Peugeot S.A. (“Groupe PSA”) announce that their respective shareholders’ meetings, held today, approv more >>
Kia Motors announces 2020 global sales and 2021 goals
04.01.2021
  Kia’s global sales total 2.61 milllion units in 2020, down 5.9% y/y           : Korea sales increased 6.2%; sales overseas dropped 8.7%    December sales recorded at 218,256 units, a 3.8% decrease y/y          : Korea sales decli more >>
Bernhard Van Bellingen - new Brand Manager at Bugatti Brussels
01.01.2021
  As of this 1 January 2021, Bernard Van Bellingen takes over the reins of Bugatti Brussels. As Brand Manager, he will occupy an 360° function that includes sales, after-sales, public relations and the marketing. In addition to his new duties a more >>
EU and China comprehensive agreement on investment
31.12.2020
China is one of the largest and fastest growing economies in the world, with a domestic market of 1.4 billion consumers.Increasing EU business relations with China will help boost EU economic growth.T more >>
SMMT calls for immediate ratification and implementation of draft UK-EU Trade and Cooperation Agreement
30.12.2020
    Draft UK-EU agreement avoids ‘no deal’ disaster for UK automotive industry.    Sector welcomes supportive Rules of Origin with phase-in periods and commitment to reduce customs burdens, and calls for immediate ratification.    With just hours from ratification to implementation, government s more >>
SMMT comment on the signing of a UK-Turkey trade deal
29.12.2020
      Mike Hawes, SMMT Chief Executive: “We welcome today’s agreement between Turkey and the UK to extend preferential trading terms beyond 31 December. We now await the full text of the deal to assess the impa more >>
Global Passenger Car Sales to Plunge by $440B in 2020, Entire Market to Drop by 10% in 2021
29.12.2020
The COVID-19 pandemic hit the automotive industry hard, causing supply chain disruptions, factory closures, and huge sales and revenue drops. According to data presented by StockApps.com, global passenger car sales is expected to plunge by $440bn in 2020 due t more >>
A transportation, infrastructure and climate priority
28.12.2020
President-elect Joe Biden has pledged to build more clean transportation, more renewable energy and more resilient electricity infrastructure — part of a sweeping $2 trillion plan to “Build Back Better.”These are the right proposals for America, at the rig more >>
Appointment of Louis-Marie Chevalier, Director of PSA Retail France
28.12.2020
From January 1, 2021, Louis-Marie Chevalier is appointed Director of PSA Retail France. He will report to Anne Abboud, Senior Vice President of PSA Retail. He succeeded Eric Basset who leaves the group for personal reason.A graduate of the ESCP and the IEP of Aix-e more >>
MITSUBISHI MOTORS Announces Production, Sales and Export Figures for November 2020
27.12.2020
November 2020     Fiscal Year 2020 (20/04-20/11)     Calendar Year 2020 (20/01-20/11) Volume(unit)     YoY(%)     Volume(unit)     YoY(%)     Volume more >>
British engine production falls -8.2% in November
24.12.2020
UK ENGINE MANUFACTURING    189,883 UK engines built in November as output declines by -8.2%.    Production for domestic and overseas markets falls -7.8% and -8.4% respectively.    Engine output has declined in every month of 2020, with year-to-date output down -28.2%. more >>
UK car manufacturing declines -1.4% in November as sector urges Brexit negotiators to ‘seal the deal’
24.12.2020
UK CAR MANUFACTURING (data for November)    UK car manufacturing falls -1.4% in November with 106,243 vehicles leaving production lines.    Output for domestic market declines -10.4% with exports flat, up just 0.3% to 90,597 units.    Year-to-date production now down -31.0% with 380,809 fe more >>
UK commercial vehicle manufacturing down -1.9% in November as sector calls for swift resolution to UK-EU trade talks
24.12.2020
UK COMMERCIAL VEHICLE MANUFACTURING    UK commercial vehicle production dips -1.9% in November with 8,605 units built.    Overall decrease driven by -8.8% exports decline, while production for UK rises 10.1% as sector works to meet ecommerce-driven demand.    Almost 60,000 commercial vehicles made sin more >>
EU Commission approves the merger of Fiat Chrysler Automobiles N.V. and Peugeot S.A., subject to conditions
21.12.2020
The European Commission has approved, under the EU Merger Regulation, the proposed merger between the automotive companies Fiat Chrysler Automobiles N.V. (‘FCA') and Peugeot S.A. (‘PSA'). The approval is conditional on full compliance with a commitments package offered by the companies. more >>
Hagerty Investigates The Highs And Lows Of Classic Car Auctions In 2020 -full report here
21.12.2020
    2020 marked the year when auction houses needed digital to survive    Despite widespread issues from government social restrictions, some physical auctions returned strong sales results    Star sale of the year was Gooding & Company’s Passion of a Lifetime event at Hampton Court Palace&n more >>
Kia Motors America announces executive management team appointments
18.12.2020
Promotions Support Kia’s U.S. Growth and Brand Enhancement Strategy    Bill Peffer promoted to chief operating officer and executive vice president    Russell Wager promoted to vice president of marketing more >>
Porsche’s Marketing Communications realigns its global agency model
18.12.2020
Increased brand focus and greater bundling   As part of a pitch process lasting several months, the Marketing Communications department of Porsche AG has realigned its cooperation with the existing agencies. The focus of the previous “Creative Alli more >>
The Special Meeting and the Extraordinary General Meeting of Peugeot S.A. will be held on January 4, 2021 behind closed doors
14.12.2020
In the light of the Covid-19 epidemic and pursuant to the provisions of regulation n°2020-1497 of December 2, 2020 (which extends and amends regulation n°2020-321 of March 25, 2020), the Managing Board of Peugeot S.A. has decided that the Extraordinary General Meeting and the Special Meeting of shareholders holding double voting rights of January 4, 2020 will be held at the head o more >>
Tesla’s Free Cash Flow Up 276% in Q3 2020 Compared to Q3 2019 - $1.395B
09.12.2020
Despite the uncertainty caused by COVID-19 Tesla posted impressive numbers regarding their free cash flow for 2020. According to data presented by Stock Apps, Tesla’s Free Cash Flow increased by 276% compared to the same period in 2019. Tesla’s Q3 free cash flow also experienced an almost $1 billion increase from Q2 2020.Free Cash Flow up by 276%, Cap more >>
Future prospects secured for the Hambach plant: Mercedes-Benz AG sells passenger-car plant in Hambach, France to Ineos
08.12.2020
    Secures employment with future-proof solutions at Hambach plant    Mercedes-Benz AG sells plant to the British company INEOS Automotive    Production of electric two-seat smart EQ models by INEOS Automotive will continue more >>
Jens Brücker becomes new head of Porsche main factory
07.12.2020
Traditional plant in Zuffenhausen under new leadership   Change at the helm of Porsche’s main factory: On 18 November, Jens Brücker was appointed the new vice president of the traditional plant at the headquarters in Zuffenhausen (Germany). Brücker su more >>
American Honda Reports November Sales Results
02.12.2020
  American Honda         Total102,614 -23.4%    Cars39,830 -26.9%    Trucks62,784 -21%     more >>
Mercedes-Benz Bank offers insurance especially for electric vans
01.12.2020
  Mercedes-Benz Bank is boosting the attractiveness of the transition to sustainable mobility with eVan insurance.    The coverage has been adapted for electric vehicles so that the charging cable, wallbox, and battery are also covered, among other items.    A 15 percent discount on the insurance premium is granted. more >>
Kia Motors announces November global sales
01.12.2020
    November global sales at 256,019 units, up 2% y/y    Korea sales increased 3.9% to 50,523 units    Sales outside of Korea climbed 1.6% to 205,496 units    Kia expects strong sales momentum to continue with expanded SUV line-up more >>
British engine production declines by a fifth in October
26.11.2020
UK ENGINE MANUFACTURING    197,374 UK engines built in October as output declines by -20.1%.    Production for domestic and overseas markets falls -25.2% and -16.4% respectively.    Year-to-date output remains down -30.1% as sector faces triple whammy of coronavirus, Brexit and 2030 end of sale more >>
October UK car production down -18.2% as sector awaits critical Brexit deal
26.11.2020
UK CAR MANUFACTURING (data for October)    UK car production falls -18.2% in October with 110,179 units leaving factory gates.    Subdued demand from EU and US markets drives -19.1% exports decline, as output for UK buyers also falls.    Year-to-date output lags by -33.8% with 379,30 more >>
UK commercial vehicle production down -25.6% in October
26.11.2020
UK COMMERCIAL VEHICLE MANUFACTURING    UK commercial vehicle production falls by -25.6% as 6,761 units leave factory gates in October.    Production both for overseas and domestic markets in double digit decline as dual impact of Covid-19 and risk of ‘no deal’ Brexit bring down operator confidence. more >>
The notices convening the General Meetings of Peugeot S.A. shareholders on January 4, 2021 have been filed in the official bulletin of legal notices
23.11.2020
The Managing Board of Peugeot S.A. has decided to convene an Extraordinary General Meeting of shareholders on Monday January 4, 2021 at 11 a.m. in order to approve the merger transaction with Fiat Chrysler Automobiles N.V. (“FCA”).A special meeting o more >>
Approval of the prospectus relating to the listing of Stellantis shares
20.11.2020
  Groupe PSA and Fiat Chrysler Automobiles N.V. (“FCA”) (NYSE: FCAU / MTA: FCA) announced today that the Netherlands authority for the financial markets (Autoriteit Financiële Markten) has approved their prospectus relating to the admission to listing and trading in more >>
Stephan Winkelmann named new President and CEO of Automobili Lamborghini
18.11.2020
    Stephan Winkelmann returns to Automobili Lamborghini    He will also remain President of Bugatti    Winkelmann succeeds Stefano Domenicali more >>
Nissan contributes - € 30 million for third quarter 2020 to Renault’s earnings
12.11.2020
Nissan released today its results for the second quarter of fiscal year 2020/2021 (April 1st, 2020 to March 31th, 2021).Nissan’s results, published in Japanese accounting standards, for the second quarter of fiscal year 2020/2021 (July 1st to September 30t more >>
UK auto counts £735 Million cost of Brexit preparation with final plea for zero-tariff trade deal as negotiations enter endgame
11.11.2020
    UK auto industry issues last plea for UK-EU negotiators to agree a zero-tariff trade deal as talks enter the final stretch.    New SMMT survey reveals at least £735 million cost to industry of preparing for Brexit so far, with more than £235 million spent in 2020 alone.    Sector doing more >>
UK used car market bounces back 4.4% in third quarter as more than 2 million change hands
11.11.2020
    UK used car transactions grow 4.4% in Q3 as showrooms re-open, with 2,168,599 vehicles changing hands.    Growth recorded in each month of the quarter, with September plate-change driving highest increase of 6.3%.    Demand lifts across all fuel types, with biggest percentage growth enjoyed by electric ve more >>
Harris Williams Advises Highline Aftermarket Holdings, LLC on its Sale to Pritzker Private Capital
10.11.2020
Harris Williams, a global investment bank specializing in M&A advisory services, announces that it advised Highline Aftermarket Holdings, LLC (Highline), a portfolio company of The Sterling Group (Sterling), on its sale to Pritzker Private Capital (PPC). more >>
Dutch funding set to boost UNCTAD’s work on e-commerce and the digital economy
05.11.2020
African e-commerce ambitions lifted by Dutch funding   Generous grant from the Netherlands will boost Africa-wide ambitions to benefit from e-commerce and provides concrete support to its least developed countries.Digita more >>
BMW Group confirms outlook for 2020 – significantly improved performance in third quarter
04.11.2020
Zipse: “Third-quarter performance underlines BMW Group’s operational strength” - Peter: “We are in an intense cost competition” - Profit before tax in Q3 rises to approximately € 2.5 billion - Return on sales of 9.4% in Q3 - Free cash flow in Q3 exceeds € 3 billion - EBIT marg more >>
American Honda Reports October Sales Results
03.11.2020
      Sales of Acura cars increased 9.1% in October, fueled primarily by robust sales of the TLX (up 8.1%) as the all-new 2021 model completed its first full month on the market    Honda Passport sa more >>
2001-2021 copyright automobilsport.com