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What do we know about reserve currencies today? They are easily manipulated by a central body, given that by design, the system is to be controlled from a central point.
It was worth the experiment over the years, but having seen how it has greatly impacted the value the workforce is getting from labor, the vast utility of the currency doesn’t mean much when its economy takes more than it gives.
We have to understand that first of all, centralization cannot be totally eradicated, no, certain things will still have to circle back to a small group of control, however, the value distributing network that should power the worldwide economy needs to be reshaped and managed in a decentralized manner.
## Partially centralized blockchains or projects are not the problems
People have the impression that whatever is centralized isn’t valuable, but the truth is that’s a lie told by the blind. What constant development teaches us is that value in products isn’t left for the non-users to decide, but for the invested.
As one that isn’t involved with something, your opinion actually doesn’t measure up much to anything. That said, a sector of the broader economy can work just fine while being centrally managed. Regardless of how centralized youtube is, it has empowered a lot of people, so you see that these businesses can actually grow and distribute value while the management is to a few.
This is to say that the narrative that Ethereum will be a failure is totally flawed, just because certain aspects of the network make it fail the “decentralization” test doesn’t mean it will fail.
However,
#### Centralized blockchains that claim to be decentralized are fraudulent business setups that share a fair chance of failing long term.
Why bring all this up? Because we have to grow out of the narrative that everything needs to be decentralized and embrace that certain things can’t or shouldn’t. So then, blockchains will see many built in a centralized nature, and that’s totally fine unless the system tries to convince people of being decentralized, this is the scams people need to flee from.
### Ethereum Ether(ETH) cannot be a “Reserve Currency” because;
First, ether has numerous network flaws pertaining to the currency itself, this puts it in a terrible situation to be adopted as a national reserve currency. These flaws primarily include volatility and indefinite network charges and state.
This is bad for any business talk more of a nation’s reserve, my own speculation has it that the reserve currency will much likely be a stablecoin built to be free, decentralized with low fee or feeless structures.
Considering the previous paragraph, Ether cannot be a reserve currency because the network isn’t decentralized, a value medium over the years has proven to be jeopardized from the start if centrally managed.
A global reserve currency has to have these characteristics at its base layer, every other factor is secondary. Bitcoin cannot either due to the limited supply, this only complicates things and would put the nationwide economy at huge risk.
Frankly, it is a bad unit of account on a large scale of accounting, basic level pricing doesn't throw much pain in the air though. Given this, a much more expandible and easily derived asset, based and governed in a decentralized manner will be a better fit for a reserve currency.
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