The United States has played a major role in the way the global economy moves, but this is slowly changing. A strong, global economy should be stable, which encourages growth and investments to thrive. The United States has provided that in years past, but with populism on the rise, globalization losing momentum and political uncertainty developing across the world, reserve currencies are proving to in a volatile state for now. One of the largest players in the global economy is China. China has profited from stability and seems to be well-aware of the danger the world’s political unrest poses to the economy as a whole. This is one reason why China is pushing for a new global currency that would be free of American influence. It seems that the Bitcoin is starting to slowly become that currency even with new regulations in place.
It is estimated that 51% of Bitcoin users are outside of the United States, so the idea of separating global currency from the U.S. is feasible. Several countries and thousands of vendors are already accepting Bitcoin technology as a form of payment, which means this adoption of payment will only grow.
Obviously, there are a number of positive reasons to move toward this type of currency. For one, governments like the United States, India and the European Union will not have the power to influence the currencies within our global economy. Additionally, the value of the currency will not be tied to any one government’s failures, such as Greece whose economic failure devastated the country and their currency’s value.
Clearly, there are benefits for governments, but there are also benefits for people. With Bitcoin, a person will no longer have to worry about banks using their savings to make investments, which is activity that most banks conduct in today’s society.
By 2030, Bitcoin is estimated to be the sixth largest reserve currency in the world.The chances are high that the Bitcoin will convince countries to join the technologically-infused monetary revolution, especially with a country as financially powerful as China paving the way. For more information on the development of Bitcoin, review the infographic below created by
New Jersey Institute of Technology’s Online Masters in Business Administration.