Will Bitcoin Replace The US Dollar?

With Grammy award-winning artist Cardi B, Jack Dorsey predicted on Tuesday that Bitcoin would eventually replace the US dollar in the digital currency market. In response to Cardi B’s question on Twitter, Dorsey said, “Yes, Bitcoin will.”

Cardi B and the tech billionaire’s spat on Twitter about cryptocurrencies replacing the dollar sparked a flurry of comments and emotions. Billy Markus, the co-founder of Dogecoin, created a meme comparing Dogecoin to the US currency. A talk about Bitcoin was “inevitable,” according to Dennis Porter, a Bitcoin investor.

Recently, Dorsey stepped down as Twitter’s CEO to concentrate on Block, previously known as Square, a finance business, naming Parag Agrawal the new CEO, who is now deeply engaged in Twitter’s decentralized initiatives.

Currently, Square is working on a developer platform and a hardware wallet for bitcoin, both of which would benefit from this new initiative.

We’d follow our hardware wallet methodology if we did this: develop openly and collaboratively with the community,” Dorsey tweeted. To construct a bitcoin mining system, a team headed by Square’s hardware lead, Jesse Dorogusker, will conduct a feasibility study.

Dorsey has invested in Bitcoin. When he first began pushing Bitcoin as the king coin in 2017, he was hooked. Bitcoin was at its lowest point in recent years in 2018, but Dorsey remained undaunted and continued to proclaim it as a potential international currency. On the blockchain, Dorsey has just launched the whitepaper of his decentralized Bitcoin exchange proposal—tbDEX—in support of transparency in payment methods. Bitcoin will play a significant role in the company’s future, according to Dorsey.

Will BTC Replace The USD

Famously, the American actor Will Rogers spoke on how “too many people spend money they haven’t earned, to purchase things they don’t desire, to please people that they don’t like.” It’s a thought-provoking statement that begs the question: What is money, and how does it work? To put it simply, a form of payment is anything that may be accepted as such. Money serves as a store of value as well as a means of trade. That leads us to the most well-known cryptocurrency, Bitcoin (BTC). Is it really a form of payment? The Communist Party of China (CCP) disagrees. Many Americans, including several well-known politicians, now believe this to be the case. Who’s right here? In addition, who is right? To put it another way: If Bitcoin fails, many individuals will lose large sums of money for no reason.

When it comes to Bitcoin, we seem to be at an impasse, with countries like China and Turkey restricting their use while others, such as the United States, are welcoming them.

China’s recent sweeping ban on crypto trading and mining, says Cointelegraph, “may be ascribed to the surge in involvement by American organizations.” What attracted so many Chinese miners? To countries across the world, including the US.

With one in ten Americans have experimented with cryptocurrency over the previous year, it’s simple to understand why. Teenagers in basements and prominent politicians are both examples of Bitcoin fans. It’s worth noting that Francis Suarez, the Miami mayor, has said that he plans to pay himself “100 percent in Bitcoin.” It was stated on December 10 that he planned to invest some of his retirement savings in Bitcoin. 

Bitcoin, like all other cryptocurrencies, is only a digital representation of value. It’s not really useful. Contrary to common opinion, it is a poor store of value because of its intrinsic volatility. Trying to make critical transactions using Bitcoin, on the other hand, is excruciating.

The decentralized aspect of Bitcoin is frequently cited by proponents. It is not regulated by central banks, unlike conventional fiat currencies such as the USD and EUR.

It is estimated that 10% of the country’s wealthiest citizens currently own 70% of the country’s total assets. Bitcoin, the great equalizer, comes to the rescue. That’s not going to happen. As a matter of fact, it is designed to help those who are already powerful. Researchers have shown that Bitcoin has a one-percenter issue of its own. More worrisome is the fact that the situation is expected to worsen in the future.

More than $230 billion worth of Bitcoins is now owned by the top 10,000 Bitcoin investors, according to a new study. In other words, only 0.01% of all Bitcoin owners now own 27% of the world’s most popular digital currency. Microstrategy, a US-based firm led by charismatic Michael Saylor, has invested more than $2 in Bitcoin; Tesla, on the other hand, has $1.5 billion worth of BTC. There goes Bitcoin’s promise of bridging the wealth gap.

In nations devastated by conflict and systematic failures of governance, Bitcoin does serve a role. Using Bitcoin as a medium of trade has become something of a last resort in these nations. Bitcoin may be a lifesaver for those in severe circumstances.

Nothing but faith can support Bitcoin, even if some experts believe that this trust is misguided. At least the US government is behind the currency, despite its apparent shortcomings. Most investors still have faith in the currency. Expect a digital dollar, not a completely unpredictable cryptocurrency, to replace the existing dollar.

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