Why Bitcoin Will Not Work As The Sole Currency

Single currency if there are different alternatives; Precisely one of the things that I like the most about Cryptocurrencies is the diversity that currently exists and surely many more will come in the future.

Indeed it has become more a store of value than anything !1UP !PGM !PIZZA

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The bitcoin infrastructure is huge, the massive adoption is a reality, everything has started in the third world countries.

In Venezuela 6 years ago we were literally starving and now we have a country where bitcoin miners are regulated and authorized by the state, that was a lot of help for people because our fiat money was destroyed by hiperinflation.

The argument that 21 million bitcoins are few is not valid. Each bitcoin is divisible by 100 million of satoshis and that is increased in the lithgning network and the microtransfers.

I do not support the government of Venezuela but bitcoin is a reality in my country.

I'm not a bitcoin maximalist, I love other cryptocurrencies.

Please check this video. https://m.youtube.com/watch?v=WDvTuYFA2So

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Yea I agree. I don't think those countries would have enough BTC to settle all the transactions going on and it would require some of the largest players. If you add in the deflationary aspects, then I see even less reason why it would work out.

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My hope is that the crucible of the free market will continue to produce more coins which excel at specific uses. BTC for security MONERO etc. for privacy. RUNE for interchangeability (and privacy). The CUB family for finance uses (one can dream right?).

You get the picture. The best situation is to have competitive sifting of cryptos into groups that excel for use case. We see this functioning in technology. Some computers excel at serving data. Some at portability. Some at limited resource environments etc.

I think we are headed in that direction but must guard against the one ring to rule them all type of thing.

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Summary:
In this video, Taskmaster4450 discusses the concept of Bitcoin as a reserve currency in response to a headline suggesting that El Salvador should solely focus on Bitcoin and become Bitcoin maximalist. He critiques the idea, arguing that the commodity-based monetary system is impractical for settling large amounts of money daily and that Bitcoin's capped supply poses challenges for a growing global economy. Taskmaster4450 delves into historical insights, such as the downfall of the gold standard, the flaws in fixed money systems, and the complexities of the international banking and monetary system. He raises concerns about the feasibility of countries like El Salvador embracing Bitcoin maximalism due to challenges in acquiring enough Bitcoin to support a thriving economy. Additionally, concerns are voiced regarding the growing concentration of Bitcoin among large entities like insurance companies and hedge funds, potentially limiting its availability in the market.

Detailed Article:
Taskmaster4450 opens the video by addressing the suggestion that El Salvador should adopt Bitcoin as its exclusive currency, criticizing the notion of Bitcoin maximalism. He argues that settling trillions of dollars daily in commodities, which would be required under a commodity-based monetary system, is impractical. Taskmaster4450 emphasizes the limitations of settling with futures contracts when backed by physical commodities due to the logistical challenges of transporting commodities worldwide for settlements.

The discussion transitions to the historical context, with Taskmaster4450 debunking the mythology surrounding the gold standard. He references historical events like Nixon taking the US off the gold standard and highlights the distrust of the Federal Reserve by the banking system post the Great Depression. Taskmaster4450 sheds light on the ineffectiveness of the Fed's reserves and how banks resorted to securing their deposits independently in the 1930s, demonstrating the lack of trust in the monetary system.

Moving on, Taskmaster4450 critiques Bitcoin's supply cap of 21 million, questioning its ability to meet the demands of a growing global economy. He argues against the idea of deflation being beneficial, drawing parallels with the Great Depression as a period of detrimental deflation. Taskmaster4450 highlights the importance of money elasticity in expanding economies and warns about the pitfalls of fixed money systems that could lead to economic contractions.

Taskmaster4450 raises concern about the practicality of countries like El Salvador transitioning to Bitcoin maximalism, given the potential scarcity of Bitcoin as large entities hoard significant amounts for investment and collateral purposes. He warns about the challenges El Salvador may face in acquiring sufficient Bitcoin to support its economy in a scenario where entities like insurance companies and hedge funds hold substantial portions of the cryptocurrency.

In conclusion, Taskmaster4450 emphasizes the necessity of understanding the complexities of the international banking and monetary system and cautions against oversimplifying the challenges associated with adopting Bitcoin as a reserve currency. He advocates for a comprehensive understanding of diverse monetary systems and highlights the potential hurdles countries may encounter when considering a shift towards exclusive reliance on Bitcoin.