The US dollar has been the world’s reserve currency for over 100 years. In 2020, more than 60% of the world’s currency reserves will be held in US dollars, and the trend is rising. Wars and agreements reinforced the supremacy of the US currency. Especially the year 1971 and the end of the convertibility of the USD to gold caused a real US dollar intoxication. However, this article is not about the US dollar itself, but about Bitcoin and the question of whether BTC cannot take the next cycle of a world reserve currency.It would be time because the normal cycle of a world reserve currency ends after about 100 years. For this we take a look into the past and the present and look at whether it is time for a plan B.
The US dollar and its supremacy
As already described in the introduction, many events in the past have led to the US dollar now being the world’s number one reserve currency with more than 60% today. No other Fiat currency is in so many state bank vaults.
The US dollar is used for the majority of financial and commercial transactions around the world. It is therefore only logical that the state banks also rely on one of the largest economies in the world. Evidence of this can be found in prices for the largest commodities worldwide: the best-known example is probably the oil price, which is determined according to the USD standard. As the largest buyer, the United States has been able to push the US dollar on the world in many ways. Incidentally, the Bitcoin price is usually also measured in USD, coincidence?