Title: Should bitcoin be a reserve currency? Is gold price ‘fixed’? Ron Paul answers (Pt 2/2) Source:
[None] URL Source:https://www.youtube.com/watch?v=18iVvYPw14w Published:Jan 22, 2021 Author:Kitco News Post Date:2021-01-25 16:10:19 by BTP Holdings Keywords:None Views:350 Comments:1
Whether or not bitcoin should be a reserve currency should be left to the free markets to decide, said Ron Paul, former Congressman and host of the Liberty Report.
I say if there is going to be a world reserve currency, it should be something that no one government, or preferably no government at all, has the exclusive rights to print or borrow at will. And free market crypto generally passes that test.
But the key word is "generally". Crytpo is still largely controlled by the development team. While in theory, any set of programmers can make their own versions of the code and it's up to the market to decide whether to adopt it, if something holds a "reserve currency" status, then what happens to routine updates? If/when the crypto reserve currency forks, (splits into 2 versions) which new version is considered the reserve currency? It's problematic.
Of course the reason a reserve currency is desirable is to have something for various countries to measure the value of their own fiat currencies, so why not just do away with all fiats and replace them with the crypto that is the reserve currency? With crypto, there is generally no need for any banking, unless some country wants a safehouse to keep cyrpto for people who can't keep it safe themselves, just as it was with gold.