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ammu40
Guest
The adoption of bitcoin as a global reserve currency would mean that the US dollar would no longer hold that position. Under a bitcoin standard, prices would be denominated in bitcoin, and it would function as a unit of account. While it's still early to predict, bitcoin is already being used as a currency in some places like El Salvador. The bitcoin standard would lead to central banks holding bitcoin on their balance sheets, and the bond market would become superfluous. The stock market would shrink, and some businesses would go bankrupt. However, the bitcoin standard would eliminate fiat credit bubbles and cure inflation, resulting in a more productive and healthier economy over time. While there would be some pain in the transition to a bitcoin standard, it would be worth it in the end.