As bitcoin reaches new highs, Is it good news for the world? Or is it just the cannary in the birdcage?
When people around the world mass exodus their local currency because it is plunging in value they often flock to bitcoin, and the price goes crazy.
Economic and Political Uncertainty
People are desperate for real alternatives that work and not just political rhetoric
Venezuela, Zimbabwe, India, Asia, South Korean, Japan, Philippines, China
The global financial system is largely based on the US dollar, but for how long, what happens when we loose that privlige?
What will prop up the dollar then?
Non-Dollar Trading Is Killing the Petrodollar
A profound transformation of the global monetary system is underway. It is being driven by a perfect storm: the need for Russia and Iran to escape Western sanctions, the low interest rate policy of the U.S. Federal Reserve to keep the American economy afloat and the increasing demand for Middle East oil by China.
As the U.S. dollar continued to lose purchasing power, several oil-producing countries began to question the wisdom of accepting increasingly worthless paper currency for their oil supplies. Today, several countries have attempted to move away, or already have moved away, from the petrodollar system. Examples include Iran, Syria, Venezuela, and North Korea… or the “axis of evil,” if you prefer. (What is happening in our world today makes a whole lot of sense if you simply read between the lines and ignore the “official” reasons that are given in the mainstream media.) Additionally, other nations are choosing to use their own currencies for oil like China, Russia, and India, among others.
As more countries continue to move away from the petrodollar system which uses the U.S. dollar as payment for oil, expect massive inflationary pressures to strike the U.S. economy.
The implications of this transformation are immense for U.S
A Dollar Decline Is Inevitable, While a Collapse Is Unimaginable, But that's the same thing people in other countries felt about their currency. The dollar declined 40 percent between 2002 and 2008 and the U.S. dollar is at lowest level in nearly 3 years
Since 1913 the U.S. dollar started down a long, steady road of devaluations. Using the U.S. government’s own figures, to obtain the same amount of purchasing power of $100 in 1913, you would need over $2,000 today.
The value of the dollar index, which tracks the dollar against six major global currencies, has fallen about 10% since January
Ever wonder why your dollar doesn’t seem to stretch as far as it used to? There is a simple explanation: It’s worth less. The reason? The nation’s money supply is constantly being expanded.
Bitcoin is about to undergo a split.
The so-called hard fork, which has the potential to create two blockchains, each with its own set of coins, brings to a head a three-year-long battle between two factions
So investors are accumulating in anticipation of the 'fork' this month driving price as well.
Financial institutions, who are historically wary about Bitcoin are increasingly showing signs of interest in the digital asset. When compared to the performance of stock markets and fiat currencies, combined with more and more regulatory structure coming into place, it is unsurprising that institutional money has started flow into the crypto-economy as well.
What do you think?