Bitcoin is turning into the world's next reserve currency
The US dollar has been heavily relied on for many years as being a stable currency. This is proven by the fact that 65% of all US dollars are currently being used outside of America, with 80% of trade finance conducted in the US dollar and 85% of forex trade volume involved the US dollar.
Countries all over the world have suffered from irrecoverable losses at the hands of inflation which has rendered their currency obsolete in the bigger world picture. However, the dollar has remained stable which has harnessed people's trust and faith it.
So, how could Bitcoin come along and take the US dollar's place as the world's reserve currency?
Unfortunately, the US dollar can be difficult to come by in legal terms which have resulted in black market currency trading to flourish. It is simply too difficult for people to have access to the US dollar due to limited foreign reserves and very high exchange rates with some currencies. There are many people who are wanting to get their hands on US dollars who would need to take the illegal route.
Examples of illegal buying and selling of US dollars can be seen in Egypt where the central bank had to shut down 48 of the 115 exchange bureaus, Ethiopia where security forces searched house to house to shut down illegal trade operations, and Nigeria where dealers were trading the US dollar for a rate weaker than the government-sanctioned rate.
This is where Bitcoin can thrive. Bitcoin does not rely on the government or banks and bypasses government control and regulations. Bitcoin is also a far more reliable currency for countries where inflation has sent them into a downward spiral. The government is capable of limiting the supply of foreign exchange, however, it is not capable of regulating Bitcoin.
Bitcoin is reliable, however, it is scarce at the moment. It can be argued that there is not enough Bitcoin available for it to be the world's next reserve currency. But this can change. The wonderful thing about digital currency is the fact that it can adapt and transform over time. If John Oliver is to be believed, a billion-dollar value for Bitcoin is not impossible.
It will be interesting to see if cryptocurrency could potentially rule the world one day and, with all of the positive changes happening to Bitcoin and other cryptocurrencies in 2019, it may very well be a possibility.