It is true that the fundamental demand for Bitcoin is in place, it has a superior monetary policy with a fixed supply that is credibly enforced. However, how many nations will be able to afford.
Erik Voorhees, CEO of ShapeShift.com tweeted: “A small nation could buy $10 billion of Bitcoin, wait five years, and no longer be a small nation.”
The reality is that not many nations have so much of disposable wealth. Each of the countries like to work with their own fiat currency. If a nation has 10 billion to spare it is technically a wealthy nation. However, if they have money to spare for BTC as a reserve asset and the BTC price increases, this will actually work.
However, people with knowledge of how nations work have to state that debt-based economies hate constrained money. And, this is why bitcoin will not be implemented in any country as legal tender.
Despite criticism many feel that this is going to happen. This can be a great opportunity for small countries that have disposable wealth.
However, critics have to state that if this should work, why no small nations have done this already, or if they have, why they have not done so publicly. It is easy to imagine that a small nation who buys $10B in Bitcoin and promotes it publicly would begin a domino effect and create a self-fulfilling prophecy.
In this regard, Sydney Ifergan, the crypto expert tweeted: “Some have to state that Bitcoin (BTC) will destroy pretty much all the debt markets. However, the idea of loans for BTC will again arrest user control over their wealth.”
Some think that if people prefer rocketing to success with smart choices instead of slaving away for it, we could see that happen. Some say if this happens there will be no nation. And others fees if it is bought with central bank reserves it wouldn’t have any impact on the nation’s economy or currency whatsoever.
Those who agree to this idea state that interestingly the nations that are best positioned to do this are the ones that are dictatorships.
Bitcoin (BTC) Getting Destroyed by USD
When someone asked, how much would the US Federal Reserve need to spend to dominate the BTC market, then destroy it? Could they based on amount hodl vs ready to sell? That would be awesome just buy every BTC and put them in an address. All BTC burned and that would be the end of speculation. And back to the real world
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