Replacing The U.S Dollar With Bitcoin: Dismantling Fiat Architecture
Using the OSI model helps us understand fiat architecture and how to scale a network like Bitcoin to replace it.This is the second article in a series about lessons that can inform bitcoin’s replacement of the U.S. dollar. Read the first article in the series, on leaving the gold standard, here.The Open Systems Interconnection (OSI) model gives seven layers of computation that allow a network effect to emerge. The network model used today is the TCP/IP model. When the two are compared, OSI is known for having stricter rules and providing delivery assurances as it transfers data. It is also....
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Last week, the Russian president said it was “a bit early” to use cryptocurrencies to settle oil trades. As Russia continues pushing de-dollarization, the Ministry of Foreign Affairs (MFA Russia) is reportedly considering replacing the United States dollar with not only traditional fiat currencies but also digital currencies.Aleksandr Pankin, deputy minister of Foreign Affairs of Russia, reiterated the country’s plans to reduce the U.S. dollar share in Russia’s international reserves and its usage in settlement with foreign partners in a Tuesday interview with local news agency....
Dan Nathan, the founder of Risk Reversal Advisors, says that the U.S. government will not keep allowing corporations like Elon Musk’s Tesla to replace dollars with bitcoin. They won’t “let the dollar fall away from being the reserve currency for the world,” which could happen if corporations keep replacing dollars in their balance sheets with bitcoin. US Government Will Not Let Bitcoin Replace Dollars, Says Risk Reversal Advisors’ Chief Dan Nathan offered his view on the future of bitcoin in an interview with CNBC last week. His comments followed the news of....
Zimbabwe's currency, the Zimbabwean dollar, is undergoing super-hyperinflation. It is not on its last legs, its kaput, its collapsed, its down and out. Zimbabweans will have to exchange quadrillions of local dollars to gain a few US dollars next week. What would you do? There are various options that Zimbabwe might go in. Create a new fiat currency. Create a new fiat currency. Adopt the US Dollar. Adopt Bitcoin. Create their own digital currency. If they create a new fiat currency then who in the global market would accept it? How long would it take to create, and get accepted into the....