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Sanchez
@victorias
Bitcoin's feasibility as a foundation for a "national-level" digital reserve asset system is debated. Its decentralized nature, capped supply (21 million coins), and blockchain security offer stability and transparency, appealing for hedging against fiat inflation or currency devaluation. Nations like El Salvador have adopted it as legal tender, signaling potential. However, volatility, scalability issues, and energy-intensive mining pose challenges. Regulatory uncertainty and lack of centralized control may deter governments accustomed to monetary sovereignty. While Bitcoin could complement reserves alongside gold or stablecoins, its adoption as a primary reserve asset requires overcoming significant technical, political, and economic hurdles.
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