Will the United States strengthen the dollar with Bitcoin? Most people believe the monetization of Bitcoin will most hurt the United States as it’s the country with the current global reserve currency.
The monetization of Bitcoin benefits one nation disproportionally more than any other country.
Like it, welcome it, or ban it, the U.S. is the country that will benefit most from the monetization of Bitcoin.
Will the United States strengthen dollar with Bitcoin?
Bitcoin will help to extend the life of the USD longer than many can conceptualize and this article explains why.
Some may choose to adopt a quasi-gold standard like Russia recently has. Some may even choose to adopt the Chinese yuan or the euro as their local medium of exchange and unit of account.
Some regions could copy what the shadow government of Myanmar has done and adopt the Tether stablecoin as a legal tender. But most importantly, some of these countries will adopt bitcoin.
For the countries that may adopt bitcoin, it will be too volatile to make economic calculations and use it as a unit of account when it’s still so early in its adoption curve.
For this reason, those countries that will adopt bitcoin will also be forced to adopt the U.S. dollar specifically as a unit of account.
Countries adopting a bitcoin standard will be a Trojan horse for continued global dollar dominance.
With recent developments, such as Taro bringing stablecoins to the Lightning Network, the possibility of moving stablecoins around the world, has increased instantly and for nearly zero fees.
The Federal Reserve of Cleveland seems to be paying close attention to these developments, as they recently published a paper titled, “The Lightning Network: Turning Bitcoin Into Money.”
Zooming out, we can see that since March 2020, the stablecoin supply has grown from under $5 billion to over $150 billion.
