Travis Patron is the founder of Diginomics, a bitcoin news organization where professionals can earn their bitcoin certification. Here he explains why the stateless nature of bitcoin holds the potential to solve an age-old international monetary flaw.
Although the United States Federal Reserve Note carries with it many advantages for conducting commerce and serving as a world reserve currency, its makeup is not void of imperfections.
One of the main shortcomings of the US dollar is the Triffin dilemma, a problem which arises when countries must manage both short term domestic and long term international economic objectives.
Such a dilemma can lead to trade deficits when a country must also satisfy international demand of its currency.
Where the dollar falls victim to the Triffin dilemma, however, the stateless characteristics of bitcoin may hold promise to solve this international monetary flaw, and provide the backbone for a more interdependent global economy.
The Triffin dilemma
The economist Robert Triffin first brought to light an international monetary issue involving the nation holding reserve currency status and the impact such a role would have on domestic trade deficits.
Such a currency arrangement is usually cited to articulate the