This is probably going to be one of your favorite videos you've ever watched.
‘Why?’ you may ask.
Because I know you guys love it
when I completely fail and have to admit that I'm wrong.
So many of you absolutely live for this moment,
and today, I'm going to provide you with the entertainment you demand.
I have to admit.
I was wrong about Bitcoin.
Are you not entertained?
Let's get it.
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My name is Ben.
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In this video,
I'm going to voluntarily humiliate myself by admitting
I was wrong.
The sweetest words in the human language
and some of the most rarely spoken words in my life.
I actually haven't been wrong about anything
since the late 1980s
when I predicted Rick Astley would be a one-hit wonder,
and no one would know who he was in the future.
For once, he actually let me down.
Boy, was I wrong about that one.
I'm going to explain to you though, why I may have been too hard on Bitcoin.
I've said publicly very many times that Bitcoin will never be the electronic currency system
it was originally designed to be by its pseudonymous creator, Satoshi Nakamoto.
In the Bitcoin white paper, the title was actually “Bitcoin: A Peer-to-Peer Electronic Cash System.”
Now, many people have focused a lot on the title alone.
Roger Ver and the Bitcoin Cash enthusiasts contend that the title was actually the core fundamental principle of Bitcoin.
This is why they forked Bitcoin.
They want to have bigger block sizes for their transactions.
Now, what this does is that it would allow them to pack more transactions inside of one block,
thus making the network faster and more scalable.
Bitcoin Cash’s community has been vilified and meme to death
for their desire to see a faster Bitcoin.
Now, I've said many times
that they could have gone about it differently,
and the optimal decision would have probably been to name Bitcoin Cash something different,
other than taking on the name of Bitcoin and trying to pretend that they are Bitcoin.
In their attempt to overtake the Bitcoin brand, they turned off a lot of people.
But here's the thing.
This Bitcoin fork exposed the fatal flaw of Bitcoin when it comes to being a digital currency.
It is just far too slow.
And, in my opinion, the lightning network is not a solution that's viable for the long term,
but what if I told you,
there is a way, where as slow as Bitcoin is,
it could actually fulfill Satoshi Nakamoto’s original vision for Bitcoin,
and, in fact, it could become the digital currency of the Internet,
and actually could become the reserve currency in the world?
That is in direct opposition against what I've argued for the longest time on this channel.
To me, Bitcoin is digital gold.
It's tortoise-like speed prevents it from being a tradable currency fit for retail adoption.
So, how in the world could I make this total about face and admit that I was wrong?
Well, as most of my apologies and admissions,
technically, I'm still right.
But if I say I'm wrong, you'll watch this video.
Here's the point.
Bitcoin can be digital gold and the electronic currency in a very interesting situation you may never have considered.
We talked a lot about the reserve currency of the world.
Right now, it is the US dollar and soon could become the digital won
or the physical won
if things continue going the way that they are.
So, let's examine exactly what the definition and purpose of a reserve currency is.
According to Investopedia:
A reserve currency is a large quantity of currency
maintained by central banks and other major financial institutions
to prepare for investment, transactions, and international debt obligations,
or to influence their domestic exchange rate.
A large percentage of commodities, such as gold and oil, are priced in the reserve currency,
causing other countries to hold this currency to pay for these goods.
So, what does all that mean?
Let me put it simply for you.
Since we live in different countries and use different currencies,
we need some base standard by which we all,
as a global community,
can use to trade back and forth.
The world reserve currency right now is the US dollar,
and this is the very key to the United States' economic success and dominance
in the last century.
It's been based upon the fact that every other country in the world has to own USD
to operate globally in finance.
This gives a huge boost to the value of the dollar,
but it's almost time for the US dollar to go gently into that good night, sir.
Why do I think that?
Is it because I'm an American and want to see pain and suffering throughout the world?
Is it so my beef coins would be worth more monies?
No, not at all.
I'm a big fan of history and historical precedent.
We talk about it a lot on the channel.
Things happen in cycles, and according to history, the US dollar’s time is almost up.
This chart lays out the history of world reserve currencies since 1450.
Over almost 600 years,
there's been six different world currencies.
If you could do some quick math, that means about every 100 years, there is a new reserve currency.
Technically, the average of the last five world reserve currencies is 95 years each,
and right now, the US dollar is sitting at 95 years.
The chart you're looking at is actually 7 years old, 1925 to 2020 is 95 years.
So it's almost time to have a new one.
The only question is, what will it be?
What circumstance will bring it about?
The Chinese yuan is certainly the top candidate right now,
as they look to dominate the United States within the next 5 years.
But recently, the digital won was not well received after its test run.
But are we missing the most obvious thing here?
Most of the world does not like China.
In fact, not only is the United States basically a war with China already,
but even in European countries,
they are finding out a lot about China's espionage and battle tactics,
as they've been taking over businesses left and right.
Additionally, there's been a lot of secrecy and scandals between African countries
and China as well.
The world does not want China to be the reserve currency, I'm very confident.
And don't forget what's going to happen when it finally comes out that China intentionally released the pandemic disease to bring down the rest of the world,
because I would say, whether or not it was intentionally released or accidentally released,
China used it to their advantage to weaken and take advantage of other countries.
That's why they allowed their people to travel internationally, but not domestically.
Think about that for a minute.
Then think about this question.
Would the United States rather have China or Bitcoin be the reserve currency?
I'm very confident that if faced with that decision, the answer will be very obvious.
Now, of course, the US will fight like hell to make sure the dollar does not lose its reserve status.
But unfortunately, that decision is not solely up to the United States.
It's up to supply and demand.
It's up to the free market.
So a big push to make Bitcoin the reserve currency could make it possible,
and after this next bull run, the excitement will be at a fever pitch.
But this is where things get wild.
Bitcoin itself is not ever going to be the world's digital currency choice
because it's too slow.
But what if the eventual choice for the digital payment solution is pegged to Bitcoin in the same way stablecoins are pegged to the US dollar, other assets, or baskets of assets.
That's pretty wild if you think about it.
If that occurred, then Bitcoin would actually be the basis for the digital electronic cash.
What a weird turn of events that would be!
Now, I have to be honest with you,
the more things developed in the world and in cryptocurrency,
I believe this is a very likely scenario,
but what if Bitcoin does not become the world reserve currency?
I believe it's still likely that Bitcoin becomes the basis or the peg for the digital currency of the internet, whatever that will eventually be.
There actually are already cryptocurrencies pegged to Bitcoin, including Binance is BTCB,
or TBTC, an-Ethereum based Bitcoin-backed crypto.
But Vitalik Buterin, Ethereum founder, has said he's skeptical about any Bitcoin-pegged cryptocurrency,
saying, I'm worried about the trust models of some of these tokens.
It would be sad if there ends up being $5 billion of BTC on Ethereum,
and the keys are held by a single institution.
The point of what he is saying here is that many Bitcoin-backed cryptocurrencies may have elements or centralization to them that investors must be careful about.
If a truly decentralized Bitcoin-based stablecoin built on a faster network than Bitcoin does become a viable currency option then the game could be on lock.
I'm pretty shocked honestly that there has not already been a bigger push to make this possible.
But I do expect Bitcoin-backed currencies as digital payment solutions will become a heated niche.
And whoever wins that battle could end up ranked second,
only behind Bitcoin itself.
Let me know what you think about this theory.
Drop your comments down below.
That's all I got.
Be blessed.
BitBoy out.