Bitcoin Is A Threat To The US Dominance

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The monetary architecture that rules the world is one of the most important pillars of US dominance. And the US dollar (UUP) is one of its most important tools. The reserve currency of the world has allowed the use of policies not permitted to other countries. The privilege of issuing currency to stimulate the economy, while not having the secondary effects of inflation, is comparable to a superpower. And, the US has become increasingly more reliant on it.

Dollars, Currency, Money, Us Dollars, Franklin

My base scenario has always been the idea that China’s emergence would end up in the revaluation of the Yuan versus the USD. The trade war reinforced that idea in the sense that China could accelerate the development of an internal bond market and create demand for its currency, allowing it to rise to reserve status, at least in some regions. There is nothing fundamentally wrong with that thesis, history supports it, and economics exhibit signs that it might be that way.

However, the status quo often overlooks subtle changes in the social tissue of the world. The brewing of that tends to produce revolutions that rip it off. It happened in Europe five centuries ago, when men’s allegiances were towards the king and not the country itself. Modern politics geared the focus towards the nation-state and nationalism. Now, I wonder if we’re are not going through some similar change.

Don’t expect a definite answer from me. In fact, I am as baffled as it gets. However, let me share a couple of insights.

First, there is an anonymous elite brewing on the internet.  In 1999, the future was the internet, but one year later the web was a fad. We were lectured on the potential of the web, just to be awakened by its insufficiencies. Truth be told the internet in those days was a far cry from what it is today. Still years away was the smartphone that would carry the internet everywhere. I believe many analysts did not consider the impact of the people deeply involved in the web’s architecture during the last two decades. This silent elite has developed the idea that the internet is like the West’s expansion – few rules, many possibilities. One thing that could be possible was an internet-based currency, truly independent of political interference. That’s Bitcoin (BITCOMP).

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Disclaimer: Disclaimer:  This text expresses the views of the author as of the date indicated and such views are subject to change without notice. The author has no duty or obligation ...

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Kees De Vos 4 weeks ago Member's comment

All holders of this "reserve currency" would have to agree? or just the few who own 95%?