Bitcoin Could Become World’s Reserve Currency: Dan Held

Serial Bitcoin(BTC) entrepreneur, Dan Held thinks that the largest digital asset has the potential to become the world’s reserve currency, although it would take at least ten years for this to happen.

Held, who is currently the director of growth marketing at crypto exchange Kraken, explained the society’s transition to “hyperbitcoinization” during a recent interview. He stated that it would take years for billions of users to adopt BTC and that the first stage of this adoption will be lead by the retail sector.

Dan Held Says Bitcoin Resolves Trust Issues With Money

Speaking on the impact of government policies on currency circulation and the general trust associated with money, Held focused on Bitcoin’s ability to deal with these issues. He noted:

“Bitcoin solves the problem of trusted money. Previously, with money, we’d have to trust the government, they would print much more of it, which would devalue it over time. And as we’ve seen throughout all human history, governments continually breach that promise. Bitcoin solves that problem. The problem of trust by creating a store of value as a kind of like digital gold, if you will, that’s not changeable by governments, not feasible by governments, not mutable, not censorable by governments. So it’s true free money.”

According to Held, the flagship crypto has proven itself to be powerful in both developing and developed nations. Its found utility in developing countries where transactions may be censored by the authorities. But it also found a use case in rich economies that printed excess money for stimulus packages during the pandemic.

Bitcoin to Attain the Status of World Reserve Currency In a Decade

Held suggested that Bitcoin has a good shot at becoming a world reserve currency, which is also referred to as “hyperbitcoinization”.

As Bitcoin gains more credibility in the retail sector and institutional demand for the currency soars, its prospects of widespread acceptance become better. For many investors, Bitcoin is an investment instrument as good as gold, which can also be leveraged for transactions. This helps the primary cryptocurrency to match the parameters set by fiat money — serve as a medium of exchange and a store of value. In Held’s view, the next step is government adoption which “comes out a little bit at a later date, probably like four years from now.”

As for how things might conclude, Held stated, “I think it’s going to be a basket of currencies at first and then eventually a transition to Bitcoin only.”