Bitcoin Surges as Dollar Collapses
As the U.S. Treasury Secretary, Janet Yellen warns, countries all over the world are drifting away from the US dollar, as they lean more towards digital currencies, with Bitcoin reigning high and dollar collapse.
The dollar’s supremacy could be facing an existential driven by Bitcoin and other cryptocurrencies’ quick rise to power, amidst concerns regarding a $34 trillion US debt that may increase the States economic instability.
Bitcoin has risen in price over the past year despite cautionary statements from the Federal Reserve with bets on Donald Trump’s possible return to power pushing for increased confidence in Bitcoin. With Project 2025 beginning to directly compete with gold, Yellen feared that the US’ financial sanctions may further undermine the global status of its currency. Project 2025 is the latest political agenda done by conservatives under the supervision of heritage Foundation.
Sanctions Running the Show
The U.S has targeted several countries for strict financial sanctions, such as Syria in 2011, Russia in 2014 and have been expanded in February 2022, and Iran starting 2018. These financial sanctions in the recent years have led to accusations about weaponizing the dollar. Another reason is that BRICS (Brazil, Russia, India, China, South Africa, Iran, Egypt, Ethiopia, and the United Arab Emirates) group is moving away from the dollar from the western financial system.
“We have very powerful sanctions that are available because of the important role of the dollar in international transactions,” Yellen mentioned in a statement to the U.S. lawmakers on the House financial services committee.
“The more we have used sanctions, the more countries look for ways to engage in financial transactions that don’t involve the dollar.”
In response to Western sanctions over Ukraine conflicts’ Russia’s central bank has encouraged the use of Bitcoins and other cryptocurrencies. “New financial technology creates opportunities for schemes which did not exist before,” said Elvira Nabiullina, Governor of Russia’s Central Bank. “This is why we softened our stance on use of cryptocurrencies in international payments.”
2024 Elections Will Reveal All
The approaching U.S. presidential election in November of this year, has seen some traders bet on the price of Bitcoin going through the roof while experiencing a dollar collapse. Geoffrey Kendrick, head of forex and crypto research at Standard Chartered, predicted a fresh all-time high for Bitcoin in August, which could see it reach $100,000 by election day. Kendrick also suggests that the price of Bitcoin could hit $150,000 by end of 2024 and $200,000 before the end of 2025 giving it a market cap of about $4 trillion.
Amongst the Bitcoin and cryptocurrency community Donald Trump is now their favorite considering his promise to protect people’s right to own Bitcoins. However, the former President is expected to be a key speaker at Bitcoin 2024 conference in Nashville, Tennessee, from July 25-27. Experts considering the contrasts is perfectly timed with Biden administration anti-crypto posture.
Legacy to Digital
The massive debt and the outcomes of financial sanctions have moved it a bit further because of this, Bitcoin and other digital currencies are gaining traction. As a result, the dollar’s future is uncertain as countries, rivals such as China, Russia, and Iran, as well allied ones such as Saudi Arabia (KSA), seek more technologically driven alternatives with dealing with their future financial transactions. Not only will Bitcoin’s $3-trillion rise to power affect global economies, but it will completely alter the current worldly financial system What this means is that the next few years will determine how these transformations are going to reshape our financial sector.
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