Could Bitcoin Be The National Currency Of The USA?
Could Bitcoin Be The National Currency?
Due to the current state of the American economy, after the announcement of Jason Williams, co-founder of Morgan Creek Digital, who claimed to be the first country to adopt Bitcoin as a national currency, the debate on whether Bitcoin can really be considered as a national currency has been ignited.
The United States will be the first country to adopt #Bitcoin as its national currency.
— Jason A. Williams “Parabolic Guy” (@GoingParabolic) September 16, 2020
At the time of writing, no country in the world accepted Bitcoin as its national currency, but many countries, especially the United States, want to somehow accept or control Bitcoin with regulatory laws. For Bitcoin to be considered the national currency, it must first be adopted by institutional investors and leading traditional tech companies.
Bitcoin started to be seen more and more as a store of value by retail and institutional investors every day. Especially after Covid-19, which has become a global epidemic, many investors have chosen Bitcoin as a safe haven and used their investment preferences in favor of the leading crypto currency. The dollar has weakened considerably due to the trade wars between the US and the Chinese government, the upcoming US elections and other key factors. Therefore, investors naturally prefer to invest in assets that are seen as stores of value such as gold and silver.
The situation that scares investors the most right now is the volatility of Bitcoin from time to time. However, especially as institutional investors prefer Bitcoin more, fluctuations will decrease and BTC, which has limited supply, will realize its potential rise. However, there are still obstacles that Bitcoin has to overcome in order to reach this point.
Bitcoin’s recognition as a national currency is among the very high probabilities that it will happen. But due to the nature of Bitcoin, it will always remain valuable even though it is not recognized as a national currency by any country.