Bitcoin could become a global reserve asset!

Ever since its inception, Bitcoin's skyrocketing price and popularity have kept everyone thinking and creating new fields of possibilities. Although Bitcoin can be volatile in terms of price, the way its price increases over a period of time is profitable in many cases. Therefore, as various countries are currently caught in the web of various debts ranging from inflation, the storage of wealth through Bitcoin can be considered as a possibility for countries. And that's what entrepreneur and investor Mark Cuban is considering. Who is a famous name in crypto industry. He recently opined that geopolitical instability and inflationary pressures could prompt Bitcoin to become a global reserve asset.

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He is an entrepreneur as well as a billionaire. He sees a situation where Bitcoin becomes a reserve asset as fiat currencies suffer from inflationary printing. We know that crypto has been in the news a lot since the US presidential election. As we know former President Trump is quite crypto friendly at present. Increased support in Silicon Valley for that could indicate a "bitcoin play" from the big tech sector. The entrepreneur also highlighted that the geopolitical role of the United States has been called into question. Even the introduction of future tax cuts that have already been promised by the current election or by promises made by presidents could worsen inflationary pressures.

But one thing to remember is that these things will happen, but they are not out of the question. Currently, there are many countries that hold dollar or gold reserves as reserves. But one thing you cannot deny or deny is that fiat currencies suffer from inflationary printing. This includes the US dollar. As we all know that US dollar is the primary currency used for cross border trade settlement and savings.

However, we have seen in recent times that the value of the dollar fluctuates more and also the actions of various countries in the field of international trade have an impact on the US dollar due to this. And that's why a former speaker of the United States House expressed his opinion earlier this year and he said that stablecoins can save the dollar. And if the global dollar is to maintain its popularity and dominance, it must play a role in maintaining its global dominance. Using stablecoins is a way for the dollar to maintain its dominance in the face of extraordinarily high debt obligations and competition from different countries' trade or currencies, particularly the Chinese yuan or the Russian ruble.

One important point, however, is that although the fundamentals of fiat-pegged stablecoins are not exceptional, they are essentially the same as the underlying currencies they represent. But if the stablecoins can be strengthened, one thing is clear that these dollar stablecoins will increase the demand for greenbacks. It would even mitigate the potential debt crisis that resulted.

Currently, cryptos can be a way and possibility to escape from the ongoing inflation or financial crisis. For example, if we look at Venezuela, we can see that many citizens or a growing number of individuals are turning to cryptocurrencies for relief in order to overcome the problems of sanctions, government corruption and runaway inflation that the country is currently facing and to escape the economic hardships. Digital assets accounted for 9% of the total remittances sent by the country's expatriates to the country last year. The country's government is eyeing a growing number of crypto remittances. Because it reflects lower transaction costs and near-instant turnaround time than traditional fiat remittance services. Also many countries are turning to crypto especially due to low transaction fees and time savings. However, the Cuban entrepreneur hopes that Bitcoin can be used as a future reserve asset.