According to the history of the last 700 years, reserve currencies have a life expectancy of about 100 years. Seventy-seven years ago this month, the United States dollar (USD) became the world reserve currency (Bretton Woods, 1944). For decades, the United States dollar (USD) has been the world’s currency of choice.

The US dollar’s reserve currency status is dwindling. The US is expanding its money supply exponentially, devaluing the existing number of USD, and this rate of expansion is unsustainable.

For the record, the Fed is not alone. Almost all major central banks worldwide are following this pattern. Today’s central banks include the European Central Bank (ECB), the Bank of Japan (BOJ), and the People’s Bank of China (PBOC) (PBOC). It’s safe to argue that most major central banks are competing to see who can weaken their currencies the fastest.

totalasset of major central banks

One of Wall Street’s greatest investors, Stanley Druckenmiller, believes that the US dollar will lose its status as a reserve currency within the next 15 years.

“I can’t think of a time when monetary and fiscal policy were so out of step with economic conditions.” — Druckenmiller

How long will the USD last if it has a finite shelf life due to both historical precedent and economic irresponsibility? It’s gone. A new fiat? It’s possible, but unlikely. When can you trust? As a result, gold is today’s reserve asset.

Gold is out, and Bitcoin is in. Decentralized, verifiable, immutable, divisible and known supply. Bitcoin is already legal tender in El Salvador, however gold is not owing to transit and dilution difficulties. Various industries are adopting Bitcoin.

A growing number of people are buying bitcoin, including individuals and businesses. The diversity of accumulation accelerates “game theory” acceptance. Example: El Salvador legalized bitcoin in September 2021. Bitcoin wallets currently outnumber traditional bank accounts. To be one of Central America’s fastest growing economies, El Salvador’s exports rose 34% in October 2021 and its GDP is expected to rise 10%.

El Salvador continues to rapidly acquire bitcoin, presently possessing around 1,220 at the time of writing. Bitcoin adoption is a race. The problem is that most don’t understand the race has already begun. Ask Micro Strategy’s Michael Saylor if they plan to sell or cease buying bitcoin.

Laos’ government mines bitcoin. It is expected to generate $190 million in 2022. A bill to make bitcoin legal tender in Tonga is being drafted. Panama, Zimbabwe, and Ukraine are considering adoption. Aspiring Bitcoin hub Singapore.

No restrictions or bans are needed, according to Monetary Authority of Singapore managing director Ravi Menon.

He is in Turkey, the first G20 country to experience near hyperinflation. I’m sure Nayib Bukele will mention the benefits of making bitcoin legal tender for the Turkish people.

For every country that refuses to accept Bitcoin, there are two others ready to do so. A country can ignore Bitcoin, but it cannot be banned. Ignore. Bulgaria has 213,518 bitcoin, Ukraine 46,351, Finland 1,981 and El Salvador 1,220 at press time.

countries and government that own bitcoin

Even in countries where governments do not encourage Bitcoin adoption, strong citizen adoption can force governments to act. Examples include Nigeria and Turkey. Globally, citizen adoption (retail) is gaining ground. According to Statista’s global poll, 32% of Nigerians, 21% of Vietnamese, 20% of Filipinos, and 16% of Turks and Peruvians utilised or owned “cryptocurrencies” in 2020.

Corporate buildup occurs. 34 public corporations held over 213,000 bitcoin as of June 2021. The biggest are Micro Strategy and Tesla. Businesses that have adopted bitcoin in the previous 18 months are majority.

public compnyies that own bitcoin

Google has teamed up with Bakkt to accept Bitcoin payments. Twitter now allows Bitcoin Lightning Network tipping. Milton Friedman predicted in 1999 that Bitcoin may become the internet’s native currency.

SL Green Realty Corp. (NYC Office REIT), a well-known US real estate investment trust (REIT), has invested $10 million in a bitcoin fund. Banks are another industry eagerly embracing bitcoin after years of ignoring and opposing it. Banks make money by lending assets. 6 million customers of the Commonwealth Bank of Australia can now buy bitcoin. Banks must adopt bitcoin or risk extinction.

Pension and insurance funds are also starting to use bitcoin. In October 2021, the Houston Firefighters’ Relief and Retirement Fund (HFRRF) and NYDIG purchased $25 million in bitcoin (and ether). December 2020 debit card payments

Bitcoin attracts pension funds and insurance firms because it allows them to save purchasing power. Inflation has devalued fiat savings. These funds must take risks to maintain their value, which is being eroded by inflation.

Holding bitcoin is easier due to its deflationary nature.

The toothpaste (Bitcoin adoption) is out. Adoption has reached saturation (in terms of scale and diversity), making a global bitcoin standard inevitable. People wearing blinders are unable to see this or the wave of adoption and accumulation.

“Bitcoin has this enormous contingent of really highly educated people that believe in it…. You’ve got this group dedicated to making Bitcoin a commonplace store of value that’s also transactional.”

Getting some may be prudent if the rate of adoption continues to accelerate.