Finance

Will Cryptocurrency be chosen next for the world reserve?

The trade war between the United States and China could go south at any moment. This might lead to the two countries weaponizing their currencies through devaluation. But this fact certainly does not inspire confidence in the US dollar. Has the time come to think about the next world reserve currency and if that happens, would it be a digital one?

Every global currency in the past had to end

When we look back, we can see that there have been several world reserve currencies over the centuries. In the last 6 centuries, the world has mostly been dominated by the European countries, until it was time for the US to take the lead. The Europeans discovered and exploited the American lands starting with the 1400s. Spain, Portugal, France, the Netherlands and the UK had seen their currencies dominate international trade. After the Bretton Woods agreement that took place in 1944, the US dollar became the world reserve currency instead of the UK pound. If you want to know more about the trading algorithm, you should browse https://trustedbrokerz.com/trading-software/bitcoin-evolution.

Every one of the world’s reserve currencies in the past has maintained dominance for about 80 to 110 years. It has become 75 official years for the US dollar to enjoy that status. The American currency has been participating in international trade even before the Bretton Woods agreement. It feels that its deadline is nearing. The thing worrying about the US dollar is that it does not comply with the Bretton Woods system any longer. The Nixon administration cancelled the gold peg in 1971 and the scene for the current petrodollar was created. This allowed the US to print money more freely and live at the expense of others as every nation needs oil for their economies.

However, this might change in the near future. Also, countries like Russia, Brazil, China, South Africa and India pose a threat to USD dominance. Also, there is a trade war going on that can lead to unknown consequences.

Is it time for a crypto world reserve currency?

The world is moving towards another world currency and there are chances that it would be a decentralized digital currency. Central banks might issue digital currencies sooner than we can expect. We might witness a world reserve cryptocurrency, which would be controlled by governments. There are little chances that this will be a public network. The chance that you hear about a cryptocurrency, like Bitcoin, become a world currency, is edging closer.

Now might be the time for you to learn more about cryptocurrencies and ride the bull. Bitcoin prices are surging again this year and have offered positive returns in every quarter. There are talks of the cryptocurrency crossing the $20,000 mark by the end of this year.

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