Summary. Bitcoin could potentially replace the U.S. dollar as the world's reserve currency, but for this to happen, the digital currency would need to make progress in several important areas. Currencies serve as a medium of exchange, a store of value and a unit of account.
Not only, what is replacing Bitcoin?
Altcoins. Altcoins, or digital currency alternatives to bitcoin, tend to see lower levels of acceptance among major companies. Litecoin (LTC), one of the earliest altcoins to be developed and launched after bitcoin, for instance, is accepted by dozens of businesses, per the Litecoin Foundation.
On another note, is the US dollar crashing? The US is facing a dollar collapse by the end of 2021 and an over 50% chance of a double-dip recession, economist Stephen Roach says. Stephen Roach.
Wherefore, is the US dollar losing value?
Beyond that, the dollar also appears to be buckling under the pressure of the debt the U.S. government is accumulating. ... The national debt has exploded in 2020 and could balloon by $4 trillion to $5 trillion before year's end—the largest annual increase in history.
Is Bitcoin a Fiat?
Like fiat currencies, Bitcoin is not backed by any physical commodity or precious metal. 15 Throughout much of its history, the current value of Bitcoin has been driven primarily by speculative interest.