Key facts:
The current outlook suggests that the dominance of the dollar in international business will decline.
While this is happening, Bitcoin (BTC) is strengthening as a global currency and store of value option.
You can agree with the policies of President Vladimir Putin and think that he is a sensible politician, or on the contrary, consider that he runs his country as a true authoritarian. When it comes to the president of Russia, extremes feed and there are no half measures. However, despite the ideological differences that we may have with Putin, there is a reality that he has recently denounced that he cannot deny. The dollar, despite being the world currency and reserve of many countries, is the money of a few and is suffering an increasingly serious crisis of confidence because of it.
Those who are reading these lines will say that I have been seduced by Russian propaganda, others will shout to heaven that we have finally realized that the bad guy in the movie is the United States. But, I am not writing this article to point out some supposed enemies of society or delve into conspiracy theories. I do it because I am seeing a paradigm shift and I think it is extremely important that we all have our eyes on this transformation.
But, what is that change that is coming? Well, simple: people no longer want to use someone else’s money, they realize the disadvantage of having “borrowed money” and is crying out for a currency that resists censorship and abuse of power. Ergo, Bitcoin. And I am not inventing any of this, it is part of the claims that bitcoiners have made for more than a decade and that is now headed by the leaders of countries sanctioned by the United States.
History has repeated itself over and over again in recent years. First it was Venezuela that, faced with the sanctions imposed by the United States, decided to create its own cryptocurrency anchored to the price of oil and tried to market its crude oil production in currencies other than the dollar. Iran was another nation to follow suit: promoting cross-border cryptocurrency payments and legalizing mining of crypto assets in the region; a move that was also generated to finance itself after the economic sanctions imposed by the American country.
The list does not stop there: China, one of the most important players in the international market, has also complained about the financial practices of the United States and is promoting the use of the digital yuan to gain power in this sector.
The fight has even reached the oil industry, where China is now trying to make trade contracts with Saudi Arabia in yuan. A move that could be the beginning of the end of the hegemony of the petrodollara financial phenomenon that we explained in CriptoNoticias last year and of which we should all have knowledge to understand in depth the complexity of this crisis.
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Beyond these factors, all motivated by the international policies of the United States that have been widely conflictive with countries that do not conform to the political vision of the West or with regimes that are difficult to classify as “democracies”, the reality is that day after day the dollar continues to weaken as a global currency and bitcoin is strengthened in this narrative.
Bitcoin is on the table and it is a strong option
A few weeks ago, if I had been asked if Bitcoin would be a strong option for countries sanctioned by the United States, I would have said that it was too early to speak in those terms. After all, bitcoin is a relatively young, niche currency that is not yet globally accepted (because it is banned in several countries).
As if that were not enough, nations like Venezuela, China and Iran did not decide to deposit all their government machinery in promoting the use of this cryptocurrency for payment of debts, products and services, much less as legal tender.
However, this week Russia has given a change in the rudder, managing to say loud and clear that Bitcoin is an option and that it is ready to be an alternative to the sanctioning practices of the United States. The head of the Russian Energy Committee, Pavel Zavalny, clarified that the Eurasian giant will trade its oil and gas in currencies other than the US dollar. For example, they plan to accept rubles, yen, gold, and even bitcoin itself in exchange for other nations around the world buying their products.
The decision was made within the framework of a series of statements by Vladimir Putin, where the president accused the West of breaching its monetary obligations by freezing Russia’s reserves. In addition to these accusations, Putin argued that this kind of behavior only undermined confidence in the currencies of the United States and Europe (the dollar and the euro), given the ease with which money belonging to the citizens of a country could be blocked. autonomous country.
Leaving aside that the sanctions that fall on Russia are motivated by the invasion that Putin has carried out in Ukraine, an operation that has cost the lives and peace of millions of people, it is worrying how easy it is for countries like the United States to decide the fate of a nation’s money.
And although it is true that the blockade policy towards Russia is not only carried out by the American country, it is an irrefutable reality that the power that the dollar has in the global market of raw materials, as well as the political weight that it has in the international financial entities, is unbalanced and unfair for countries that depend on the American currency and its monetary decisions.
Almost 60% of world reserves are protected in the dollar. In other words, almost half of the world’s money is in the hands of the leadership of a country that does not exceed 400 million inhabitants. Or, in other words, controlled by a group of people who have all the power to print more money if they wish, block accounts as they wish, and distribute the wealth as they see fit. In the end, the dollar is still a currency for Americans, and anyone who uses it as a store of value must keep in mind that they will be at the mercy of US motivations.
In this context, it is an increasingly pressing priority for the world to find a substitute for the dollar and any other centralized currency. Leaving the fate of your finances in the hands of an all-powerful third party is not the best option we can have when it comes to our own money, so moving towards a monetary system that is resistant to censorship, centralization and abuse of power is a human right that we must guarantee.
The good news is that we don’t have to invent a currency out of thin air, nor have to fight and make agreements with the powerful in power, because the alternative to abuses of power already exists in the financial world. Bitcoin was born as a response to the crisis of confidence in the world economy, standing out for being an asset that does not depend on a central bank or any financial institution. In this way, bitcoin is not vulnerable to censorship as it is a more private and decentralized currency, as well as being resistant to abuses of power as it works through a mathematical code and works thanks to a network of users.
Due to these characteristics, and in view of the current scenario in which the world is submerged, in my opinion it is increasingly obvious that the spaces for the dollar are shrinking, while Bitcoin is getting stronger in the face of the new needs of the citizens of the world. world who ask for greater autonomy.
Disclaimer: The views and opinions expressed in this article belong to its author and do not necessarily reflect those of CriptoNoticias.