Bitcoin (BTC) has grown so quickly in the last few years that it is now the most well-known cryptocurrency. As recently as November 2021, its value reached an all-time high as people found out how useful it is in the real world. Bitcoin is mostly used as an alternative way to pay for things, but it is also a good way to save money because it is more resistant to inflation. In some sections, it is felt that Bitcoin’s continued upswing and widespread use around the world could see it replace the U.S. dollar as the world’s reserve currency in the long run. Such views have become increasingly popular lately and many believe that it’s high time governments across the world started holding BTC in their national reserves. How did the Dollar Become the World’s Reserve Currency? 78 years ago, 730 delegates from 44 countries met in Bretton Woods, New Hampshire, to chart a post-war financial order for the world. The deliberations laid the foundation for the global financial system we have today. They led to the founding of the International Monetary Fund (IMF), the International Bank for Reconstruction and Development, and the U.S. dollar as the global reserve currency. The U.S. dollar remains the dominant reserve asset. Most countries keep a monetary reserve consisting of the dollar, precious metals, and other highly liquid assets to meet their financial obligations. These reserves are meant to regulate a country’s money supply and mana...
