Early Bitcoin investor and evangelist Trace Mayer has made a compelling case for the digital currency to be given world reserve currency status. The host of his own podcast, he started investing in bitcoin in early 2010 and has been publicly promoting the cryptocurrency since 2011.
Gold, Fiat, and Crypto
Trace Mayer came across bitcoin while writing a paper on the topic of ‘History of money and currency in American Law’ during his American legal history class. Not too long after that, he began his own podcast titled The Bitcoin Knowledge Podcast. In the past, he has repeatedly stated that bitcoin will someday replace traditional fiat currency.
While gold is sound money and limited in supply, it doesn’t move well. On the other hand, the US dollar enjoys an enormous amount of liquidity but does not have a supply cap. According to Mayer, this is where bitcoin can be used since it combines the best of both worlds. If introduced as an equity-based system, it has the potential to replace fiat currencies.
Mayer further states that people are no longer tied to traditional ways of finance and banking via bitcoin. They are also willing to choose new money which is more sound, reliable and isn’t confined by borders of countries.
He continued, stating that just as newspapers were replaced by blogs and books by e-books, bitcoin could do the same to fiat. The blockchain technology, highlighted in bitcoin’s whitepaper, is independent, robust and most importantly, decentralized. No country’s central or reserve bank, government or even non-governmental organization can fundamentally influence the price of bitcoin.
Full Nodes and Wall Street
Currently, the dollar is viewed as the world’s reserve currency since banks across the world have dollar reserves to manage their current account deficits and trade with other nations. However, Mayer believes that bitcoin will soon take over that duty as the world’s reserve currency. He even said that it is more a question of when and not why.
The crypto evangelist believes that the real value of bitcoin will be unlocked once merchants start accepting it as a payment method. This is because increased adoption adds value to the system and makes it lucrative for miners to secure the blockchain. A strong, robust and immutable blockchain is in the interest of all associated parties.
In an interview with Epoch Times, the investor also said:
“There is $90.4 trillion in broad money supply and more than $200 trillion in the bond markets. If you tried to move some of that volume into bitcoin, the value of bitcoin could go higher, much higher as we have limited supply of bitcoin.”
He also explained how he saw the cryptocurrency’s limited supply as a feature, unlike Wall Street, which has a somewhat negative view of it.
When asked about bitcoin’s security and decentralization, Mayer replied positively. Not only is the network secure due to full nodes continually performing validation of transactions, but is also driven by thousands of different people running those nodes all across the world.
Apart from bitcoin, the world’s smartest brains are working on the blockchain technology and making it more secure. He pointed out how the founder of Ethereum, Vitalik Buterin, referred to the Ethereum community as a playground for the most inquisitive and curious brains in the world of technology.