The latest news sees the famous founder of Twitter (now X), Jack Dorsey, declaring that Bitcoin has the potential to replace the US dollar.
He did it during a recent speech he gave in Tuscany, Italy, the recording of which was also published on YouTube.
The speech of Jack Dorsey
Dorsey was the co-founder of Twitter, and he was the CEO practically until the advent of Elon Musk.
For a few years now, however, he has mainly been involved in development in the financial sector, with his company Square now renamed Block.
He is also a well-known bull of Bitcoin for several years now.
Not by chance, the speech he gave about ten days ago at the Festival of the Sun was titled “Tech and Freedom”, because the key point on which his evangelization work on Bitcoin insists is precisely freedom.
Dorsey, as he often does now, showed up wearing a t-shirt dedicated to the inventor of Bitcoin Satoshi Nakamoto, and spoke for about three-quarters of an hour.
The heart of the speech was the “permessi”, that is, Dorsey dedicated it to all those things for which you need to ask for permission to do them. His goal was to make people understand how technology can help to no longer have to ask for all those permessi from someone.
Bitcoin news: according to the founder of Twitter, BTC is capable of replacing the US dollar
Obviously, he also talked about Bitcoin.
According to the founder of Twitter, Bitcoin has the potential to completely change global finance, and to grow even outside the West with increasingly broader use cases and as a true unit of value.
Indeed, in this regard, he also explicitly stated that he believes Bitcoin could eventually replace the US dollar in the future.
He does not believe that it could happen in the short term, nor even in the next 10 years, but in a somewhat more distant future. However, he hypothesizes that already within about fifteen years one could begin to observe a similar evolution.
He stated that little by little people are realizing the value of this new system, and above all why it is so powerful. At that point Bitcoin will inevitably also have the potential to dethrone the US dollar as the dominant currency in the world.
Twitter news: the replacement of the dollar by Bitcoin
It should be noted that Dorsey did not say that the dollar in the USA will be replaced by Bitcoin, but that Bitcoin globally could become the reference currency instead of the US dollar.
On the other hand, Bitcoin is by its very nature a global currency, while the US dollar is the national currency of one of the most powerful countries in the world, but not the most populous.
Indeed, as time goes by, the dominance of the USA over the world is slightly waning, after reaching its absolute peak with the collapse of the Soviet Union at the beginning of the ’90s of the last century.
The rise of China, which began at the end of the ’90s, and then that of India, which has just started, are seriously challenging the global leadership role of the USA, and it seems impossible that this trend can be stopped.
At this point, even the US dollar, which over the decades has established itself as the undisputed global reference currency, could slowly begin to lose its leadership on a global level, while obviously maintaining absolute and undisputed leadership in the USA.
However, it remains difficult to imagine that at a global level the leadership of the dollar could be replaced by that of another national currency, such as the Chinese Yuan, or the euro.
To tell the truth, it seems that the so-called BRICS (Brazil, Russia, India, China, and South Africa) are trying to create an alternative global currency to the US dollar, but it would still be a currency dominated by China, and therefore difficult to adopt in those countries where there is strong skepticism towards what comes from China (USA first and foremost).
Bitcoin vs. dollar
At that point, it is correct to imagine that if there is a global currency that truly belongs to everyone, that is precisely Bitcoin.
It should be noted that Dorsey was not talking about the replacement of fiat currencies with Bitcoin as a means of payment (i.e., transactional currencies), but as a benchmark for the global financial system.
He stated that BTC could potentially integrate or replace the US dollar that governs everything, and he emphasized the importance of shifting global dependence from national currencies like the dollar or the yuan.
He said:
“These are two entities that control the value of your money and you do not elect them. While with Bitcoin, you have much more control and much more freedom of action.”
He was referring to the fact that the governors of central banks that issue and manage fiat currencies are not elected by the people, but appointed by the rulers.
Moreover, in China for example, not even the politicians are really elected by the people, whereas in the USA at least this is the case.
The national currencies
In the future, it is very likely that at the national level, fiat currencies will continue to be the main means of exchange used by all citizens, exactly as they are now.
The discourse, on the other hand, should change if the reasoning is elevated to a global level.
In reality, no one decided in a collegial and shared way that the US dollar should become the global reference currency. It was an imposition from above simply because the USA is the world’s largest economic power.
Currently, about 26% of the world’s GDP is produced in the USA (more than a quarter, but this percentage in 2001 exceeded 30%.
When a single State produces almost a third of all the wealth generated in a year, it is inevitable that its currency becomes a global benchmark.
However, this trend is decreasing, and with the rise of India (just begun) the decrease could intensify.
At this point, it is correct to ask whether the dollar will be able to maintain its global leadership, but it is equally correct, as Dorsey does, to imagine that if it does not succeed, Bitcoin would be one of the candidates to replace it in this specific role.