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37 sats \ 5 replies \ @justin_shocknet 22 Mar \ on: Bitcoin Is On Its Way To De-dollarize The World bitcoin_beginners
This is an oversimplified and boring flavor of Bitcoin narrative that has been repeated ad nauseum for over a decade. The overlooked factors in posts like this are why we have an eternal September of people that think Bitcoin is failing and inevitably end up shitcoining or becoming lemmings for reckless and unnecessary forks.
Yes, Bitcoin is hard and fiat isn't. That doesn't mean the dollar is being replaced around the world as you might expect, evidence shows quite the opposite.
Heck, even this board is overrun with ECashers and other tokenized credit maxi's. I made the mistake of looking at Nostr this morning to see Bitcoiners simping over dollar based ECash transactions.
Since the fiat-shitcoin mind virus in still prevalent in the Bitcoin community after all this time, it's a guarantee that fiat shitcoins are here to stay in the world more broadly.
We must understand the reasons for this paradox:
First, Bitcoin's deepest exchange market is in dollars, this comes at the expense of worse fiat currencies, not Bitcoin. This last flex the dollar has is enough to keep it around longer than it otherwise might survive in a heads on competition. Dollarization is a pre-requisite to bitcoinization. This "dollar milkshake" has been playing out long before Bitcoin's existence, the consolidation of all the European fiats into the Euro-Dollar system might have been the first domino, BRICS next... and so on. Trade and borders are very real things, you still need some level of cooperation with 3rd parties to trade physical things with someone across the globe.
Second, no meaningful cohort outside of psuedo-governmental institutions under mandate save in dollars. Better money is meaningless when you have none.
Dollars are used to buy things, people without access to a dollarized banking system rarely have any earnings to save. In unbanked countries, shitcoins to transact dollar denominations are more common than Bitcoin, this is why Tether and other stables have such big markets. Bolivares still exist in Venezuela, where ironically Bitcoin Cash is used more than Bitcoin, despite both being worthless as a savings instrument.
I say this as someone working on Means of Exchange tech for Bitcoin and believe that Means of Exchange usecases are Bitcoin's second act to come, but it won't be the only means of exchange nevermind the predominant one.
Dollarization is a pre-requisite to bitcoinization. Not invalidating any thing you said. However, I am a beginner so it might seem oversimplified to a veteran. Also, I was trying to tell that de-dollarization is happening. It's happening at macroeconomic levels now. Countries like China and Russia, and even India, are grouping together to find other means. They are so far successful as well in their attempts.
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As I stated, the world is NOT de-dollarizing, it is dollarizing at the expense of other fiats.
Brazil Russia India China (BRIC) were never dollarized, that's exactly why they've always been looked at as global competitors. They are global competitors to the dollar only because they make stuff and people buy it with whatever currency [they] demand.
Now should BRIC countries unify their currency, that would be teaming up to fight or slow the relative strength of dollarization happening around them. If they were dollarized it wouldn't matter, they could just Bitcoinize.
Small fish gets eaten by a medium sized fish, medium sized fish gets eaten by a large fish. Money works this same way. Dollar is the medium fish and it's got plenty of eating left to do.
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But ultimately it will be eaten by.
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You mean ideally... Ultimately implies some evidence of inevitability, but all evidence has been to the contrary.
Here we are on a Bitcoinized discussion board, and yet, there are territories dedicated to the proliferation of fiat payments tech.
Since there's always going to be people without any wealth to protect, there's always going to be a fiat shitcoin the wealthy use to coordinate them.
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Things are changing, mate. It won't be overnight but it surely be.
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