Watch out US Dollar (and Cents), here comes Bitcoin (and Satoshis)

Watch out US Dollar (and Cents), here comes Bitcoin (and Satoshis)


Sorry if that title sounds like the name of a bad kid's book. That was kind of the point. So, listen up boys and girls...

It's been happening slowly in front of everyone's eyes for years now. The world's reserve currency has been shifting. There's no doubt that the US Dollar remains the most used currency, accounting for between 56-59% of global foreign exchange. But, in recent years, countries have begun transacting on the blockchain. At first, it happened slowly and countries like El Salvador were criticized for adopting Bitcoin as legal tender. Last year, the country rescinded the coin's status as legal tender amid protests from its citizens and warnings from the International Monetary Fund (IMF) about price volatility possibly destabilizing their economy. Despite the "failed attempt" at a "Bitcoin-based economy," the country remains committed to purchasing 1 BTC per day, currently hodling over 7400 coins.

Bitcoin remains a key component to the country's economy and growth, the government of El Salvador continues to use volcanic energy from the Tecapa geothermal plant to mine Bitcoin. The facility currently dedicates roughly 1.5 megawatts to mining, though there are ongoing plans to expand this to an additional 5 megawatts.

And so, while Bitcoin does not yet dominate the leaderboard for reserve currencies of global exchange, it has entered the realm:

Top Reserve Currencies (2026 estimates):

  • US Dollar ~58–60%
  • Euro ~19–20%
  • Japanese Yen ~5–6%
  • British Pound ~4–5%
  • Chinese Yuan ~2–3%
  • Other/Bitcoin/Gold: Remaining share (Gold holding high >1,000 tons annually; Bitcoin as a growing strategic asset)

In my view, it will be a very long time before traditional currencies are completely displaced, if ever. But as countries and financial institutions continue to accumulate digital assets (in the US, they're now legally digital commodities), the rise of Bitcoin as a world currency continues to unfold before our very eyes. There are many countries that aren't so public about their hodlings, so they won't show up in any of the statistics. But let's take a look at the current numbers, as posted and pictured by BiTBO:

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So, will the US Dollar eventually lose its dominance to Bitcoin? Too soon to tell, but I think the answer for now is ...hardly...

Even as countries, governments, companies, and individuals ramp up their coin holdings, there remains the legacy financial system which is deeply rooted and engrained in the world economy. While the purchasing power for individuals is slowly eroded over time with fiat currencies, the dollars pounds and yen of the world provide stability...something that Bitcoin simply cannot provide. Volatility is a feature of the coin; it's a beast in its own class. So, why do the financial leaders of the world take such big stakes in something so new, so "risky?" More shall be revealed, but here's an interesting recent development:

Iran has created a Bitcoin-based toll system, for ships passing through the Strait of Hormuz. Tanker operators first email Iranian authorities with their cargo details. If Iranian officials clear the ship for passage, a short-lived wallet address is sent to the tanker operator for them to make the toll payment with a very limited time window. That particular wallet address is used only once, to avoid being blacklisted or monitored by other countries. There are certainly more nuanced details to the circumvention, but that's it in a nutshell.

Bitcoin has been a part of the world's financial plumbing system for a while now, and its constant rise in price will only lead to continued adoption. I'm quite sure that sanction circumvention was not what Satoshi had in mind when authoring the Bitcoin White Paper...or was it?


The original Bitcoin faucet is long gone, but there are still ways to collect some free crypto if you invest some of your free time:
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If you're interested in Bitcoin Lottery Mining and want to get a desktop Bitcoin miner:
  • Head to Solo Satoshi and check out their open-source BitAxe models. They're a great starting point for beginning miners!

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dot com boomer writing on what interests me


Esoteric Selections
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