Bitcoin is “Well-Positioned” to be the Global Reserve Currency: Pomp Comes with Guns Blazing
- Bitcoin as a global reserve currency.
- Can you see it? Do you believe it to be?
A reserve currency is one that is held in significant quantities by the government as well as institutions as part of foreign exchange reserves and used commonly in different aspects of the global economy.
The US dollar currently has the title of global reserve currency that was bestowed upon it at the end of the 20th century.
USD’s Time is Running Out
The US dollar is not the first one, many came and went before it. Global reserve currencies last about 100 years while the average lifespan of fiat currencies is 27 years.
So, it comes as no surprise, that the USD is facing challenges.
But is it possible the next global reserve currency could be our very own Bitcoin?
According to Morgan Creek Digital’s Anthony Pompliano, the answer is very much yes.
On a number of occasions, with calls like “non-zero chance Bitcoin will become global reserve currency” and that it is becoming one “right before our eyes,” Pomp is all in.
Threats to Global Currency Status has no Effect on Bitcoin
In a note to clients, Pomp came guns blazing at Bitcoin’s case for a global reserve currency minus the guns.
A new currency, he says has been created by a group of people that is now vying for this status and it’s the best offense against the global reserve currencies is “great defense.”
Unlike the reserve currency USD, Bitcoin is the way to
“survive any known attack.”
Bitcoin moreover, nullifies the threats to a currency’s reserve status.
Given the fact that Bitcoin isn’t controlled by any one person or group, its decentralized nature renders military superiority and economic sanctions irrelevant.
As for cyber warfare, despite there being hundreds of billions of dollars in incentives for someone to successfully attack the system, no one has succeeded yet. Over the past decade, the Bitcoin network only continues to be stronger and more secure.
“Bitcoin’s Department of Defense has no bullets, no bombs, no ships, no fighter jets, and no soldiers. It has thousands of volunteers and millions of computers around the world that are cooperating to ensure there is no single point of failure,”
The First to Achieve the Status Without Ever Engaging in Conflict
There are two factors working in favor of Bitcoin, it is not backed by a nation-state and has the ability to withstand any attack.
Bitcoin’s defense-first approach, Pomp says is likely to shift us from
“military/economic/cyber superiority to anti-fragile superiority.”
In the quickly changing world, nation-states are no doubt behind the curve. And this is where the sleeping giant Bitcoin is
“well-positioned” to be the first currency to achieve global reserve status “without ever having to engage in conflict.”