In order to maintain its standing as the issuer of the global reserve currency, the United States government will likely support the dollar with bitcoin.
This is part two of a two-part series on the Dollar Milkshake Theory and its logical evolution to the “Bitcoin Milkshake.” This article will examine bitcoin’s role in the worldwide sovereign debt crisis.
The majority of individuals feel that the United States would suffer the most from the commercialization of bitcoin, given it is now the nation with the global reserve currency.
The commercialization of bitcoin disproportionately Favours one nation over all others. The United States is the nation that will profit the most from the commercialization of bitcoin, regardless of its stance on cryptocurrency. This essay outlines why Bitcoin will assist in extending the USD’s existence beyond what most people can imagine.
If we proceed under the premise that the Dollar Milkshake Thesis continues to demolish weaker currencies throughout the globe, these nations will be forced to make a choice when their currency experiences hyperinflation. Some of these nations will be compelled to dollarize, similar to the more than 65 nations that have dollarized or tied their currency to the U.S. dollar.
Some may elect to use the Chinese yuan or the euro as their local medium of exchange and unit of account. Some places might follow in the footsteps of the shadow government of Myanmar and embrace Tether as legal money. Most critically, though, some of these nations will embrace bitcoin.
Bitcoin will be too volatile for nations that may accept it to use for economic calculations and as a unit of account while its adoption curve is still so high.
In order to maintain its standing as the issuer of the global reserve currency, the United States government will likely support the dollar with bitcoin.
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