#Bitcoin will eventually be held by nations across the globe.

I took a deep dive look into the reason why countries will start holding #Bitcoin in the future here:
๐Ÿ”ฝ
First, let's look at FX reserves:

Foreign Exchange Reserves (or FX reserves) are cash and other assets, such as #gold, held by Central Banks.

One of the main reasons countries hold FX reserves is to instill confidence in their nation's financial markets and economy as a whole.
The largest and most important reserve currency held is the $USD.

Besides the euro, there has been no real competitor to the dollar dominance as a reserve currency.
The amount of #USD held as FX reserves is at its lowest in recent history.

The 1990's high of 72% has dropped to under 60% in 2020.

Looking at the international scene, there is no indication the trend of de-dollarization will change, and may accelerate with the rise of $BTC
The process of de-dollarization is happening in real time.

On the global stage, many nations are moving away from the $USD for various political and economic reasons.

This leaves an opening for something else to gain a foothold.

One obvious choice is #Bitcoin
Central Banks also hold #gold in large reserves, for similar reason to #USD.

It acts as a 'guarantee' of the debt, and can help strengthen the financial position of a nation.

Former Fed Chairman Ben Bernanke famous said that Central Banks hold gold because of "tradition."
There are over 33,200 metric tons of #gold held by nations and international agencies.

In recent years, many nations have increased their gold reserves as they move away from #USD

Soon, the move away from the #USD will be towards holding #Bitcoin

Leaders of nations are both publicly and privately expressing a huge interest in #Bitcoin .

El Salvador recently passed a bill formalizing #Bitcoin as legal tender.

This is the first step towards legitimizing $BTC, and may lead to nations eventually holding it as a reserve
Other Latin American nations also have public officials expressing interest and support for #Bitcoin

These include government officials from:

๐Ÿ‡ฒ๐Ÿ‡ฝ #Mexico
๐Ÿ‡ต๐Ÿ‡ฆ #Panama
๐Ÿ‡จ๐Ÿ‡ด #Colombia
๐Ÿ‡ช๐Ÿ‡จ #Ecuador
๐Ÿ‡ง๐Ÿ‡ท #Brazil
๐Ÿ‡ต๐Ÿ‡พ #Paraguay
๐Ÿ‡ฆ๐Ÿ‡ท #Argentina

The story will not end here
With the #USD losing more ground, many have been turning to #Bitcoin and #crypto instead.

#Bitcoin has a fixed amount of 21 million, as opposed to a theoretical infinite number of #USD .

As there are no signs of money printing ending, expect the trend toward $BTC to continue
To sum up:

1. #USD is losing its status as the top Foreign Exchange Reserve currency with continued de-dollarization

2. #Bitcoin continues to grow in popularity, and is being formalized by banks, cities, and now nations

3. The trend towards #Bitcoin and #crypto will continue
Thanks for reading through!

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More from @crypto_tolkien

8 Jun
THREAD:

Why #Bitcoin will surpass #Gold .

1) Market Cap

Currently Gold has a market cap 16 times larger than Bitcoin
Gold has been around since the beginning of human history. It has been used not only as a store of value, but as a currency as well.
Fast forward to more recent times.

In 1944, over 700 delegates from 44 countries met and agree to what became know as the 'Bretton Woods system.'

The purpose was to create a foreign exchange system and *prevent devaluation of currencies*.

Thus the US dollar was pegged to gold
Read 12 tweets
7 Jun
The idea of a 'flippening' between $BTC and $ETH is a contentious topic that has once again reemerged in popular discussion.

I decided to do a deep dive into the subject.

What I found was very interesting, to say the least.

All data and observations can be found belowโฌ‡๏ธ
First, let us define the term.

The #flippening refers to the possibility of $ETH gaining a larger market cap and surpassing $BTC.

This would make $ETH the largest and most important blockchain and cryptocurrency in the world.

$BTC has never lost the #1 spot Image
The idea of the #flippening becoming a real possibility first started to gain traction in June 2017.

At the time, $ETH had 83% of the market cap of $BTC,
It's market cap was quickly increasing, and $ETH 's rise seemed to have no end in sight. Image
Read 16 tweets

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