Today every news channel in every country displays the exchange rate of their national currency vs the US dollar on a nightly basis in order to guage the strength of their currency. Most people know roughly how much their currency is worth in US dollars.
Ask an indian how much 81,000 rupee is worth and they will say around $1,000 USD. Ask a brit how much 830 pounds is worth and they will say around $1,000 USD. Ask a singaporean how much 1,350 SGD is worth and they will say around $1,000 USD.
Most people dont know what their currency is worth in other national currencies but most people know what their currency is worth in USD because the US dollar is the worlds reference currency.
Bitcoin is still small relative to the USD but it is already becoming more global and more prevalent in most countries, every country has its own bitcoin exchanges. It is also starting to be used more in cross border remittances.
People compare their currency to the US dollar in order to measure their currencies performance. But as the US dollars role deminishes and bitcoins role increases people all over the world will start comparing their currency to bitcoin in order to measure their currencies performance.
There will come a time where bitcoin takes over the role of being the go-to reference currency. Soon more people will know what their currency is worth in bitcoin than know what their currency is worth in US dollars and the goal will not be to maintain stability against the USD but to maintain stability against bitcoin.
When this happens bitcoin would have become the worlds reference currency for individuals and after that its only a matter of time before bitcoin becomes the worlds reference currency for institutions and even governments.
The ironic part is no national currency could possibly maintain value against bitcoin as they are all debasing at such a rapid rate. So as bitcoin becomes the worlds default reference currency it will completely unmask just how weak all national currencies are and cause people to see exactly why they should be saving in bitcoin instead of saving in fiat.
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