In a recent interview, Dan Held, head of growth at Kraken, argued that the market’s leading cryptocurrency, Bitcoin could become a global reserve in about 10 years. He maintained this during an exclusive he held with CoinTelegraph.

For some Bitcoin proponents, replacing the US dollar as the world’s reserve currency is a lofty, if achievable, goal. But is it realistic?

Held, noted that, in developing countries, Bitcoin is primarily valuable for bypassing censorship. While, in the western world, Bitcoin is attractive as a hedge against printing money from central banks.

He assured that, the transition to “hyperbitcoinization,” a world in which billions of users adopt Bitcoin, begins with retail users. Then institutional investors and finally the participation of governments.

Bitcoin’s permissionless nature is the fundamental property that is leading this transition. “It’s true, free money. It’s money that no one but you can control,” he said.

Since the end of World War II, the US dollar has been the world’s reserve currency. Today, more than 59% of foreign banks ‘ reserves are denominated in US dollars, according to the International Monetary Fund.

However, the position of the dollar as a world reserve currency has recently been weakened.

Some experts agree with Dan Held and believe that Bitcoin will be the next global reserve

In addition to Dan Held’s opinions, other experts such as Campbell Harvey, professor of international business at Duke University, told CoinTelegraph earlier, that, as interest rates rise in the United States, “it becomes riskier as a reserve currency. At some point, it’s too risky and alternatives are sought.” Indeed, economic history teaches that world reserve currencies do not last forever.

During August of last year, business intelligence firm MicroStrategy announced that it had adopted Bitcoin as its main treasury reserve asset. While, in early 2021, former Canadian Prime Minister Stephen Harper raised the stakes.

Suggesting that not only businesses, but also governments, could use cryptocurrency as a reserve. Although as part of a “basket of things” that also included gold and fiat.

The conviction that the future lies in cryptocurrencies

Meanwhile, American billionaire investor Stanley Druckenmiller, founder of Duquesne Capital, bets on cryptocurrencies.

In addition to assessing how well positioned Bitcoin is, he considers that the technology around them will facilitate in the future an alternative to the dollar as a world reserve currency.

The investor recalled in an interview on CNBC ,that ” five or six years ago I said that cryptocurrencies were a solution in search of a problem.” And, he now realized that continued financial stimulus and inflation hedging encouraged cryptocurrencies.

The truth is that, as well as these specific examples, there are many followers of Bitcoin. They believe that the currency will be so powerful that it will put an end to the hegemony of the dollar. And, it will transform the monetary system from its roots. Based on the theory that we are witnessing the end of a historical cycle.

Expansionary policies coupled with high debts and deficits threaten the position of the dollar as the world’s reserve currency. It is here that Bitcoin aims to reclaim and harness the terrain.

Will Bitcoin be the next global reserve? Let us know your opinion in our comments section.