Part 12/16:
The potential for Bitcoin to serve as a “reserve asset” grows as its market cap and liquidity expand. Countries like El Salvador already adopted Bitcoin for official use, incentivized by its scarcity and decentralized nature. The long-term vision includes Bitcoin ecosystem components like lightning networks and taproot protocol upgrades enabling international trade and settlement.
The Risks of a Centralized Digital Currency
They express concern about the concentration of digital currency infrastructure in state-controlled CBDCs. Such centralization could make entire economies vulnerable if the digital system fails or is shut down—akin to a single point of failure. The vulnerability becomes more pronounced as reliance on permissioned, surveilled digital currencies increases.