In his characteristic style, the renowned author of "Rich Dad Poor Dad," Robert Kiyosaki, has recently shared his thoughts on an upcoming event that he believes could accelerate the de-dollarization of the global economy. According to him, the much-awaited BRICS summit, scheduled to commence on August 22, has the potential to trigger significant changes.
Kiyosaki predicts that during this summit, the BRICS nations (Brazil, Russia, India, China, and South Africa) might explore the possibility of launching a new trading currency backed by gold. In his enthusiastic tweet, he coined the term 'bric' for this potential currency and suggested it could be worth an impressive $3,000, effectively signaling a shift away from the US dollar.
However, it's important to note that top officials from both South Africa and India have already clarified that a BRICS currency is not on the summit's agenda.
Despite the confidence in his prediction, some experts disagree with Kiyosaki's views on de-dollarization. They argue that the dollar still dominates global trade, accounting for 88% of all currency transactions, and remains the primary asset held by central banks, making up 55% of foreign exchange reserves.
Nevertheless, Kiyosaki has consistently warned about the fate of the US dollar, believing its decline could lead to surging inflation. To hedge against such a scenario, he has encouraged his followers to invest in assets like gold, silver, and bitcoin, which he views as safer alternatives amidst the potential transition away from the dollar.
An Opportunity For Crypto??
Amidst the discussions surrounding the potential de-dollarization of the global economy, cryptocurrencies, especially decentralized ones like Hive, could find themselves in a unique position to benefit from such a shift.
Hive, being a decentralized blockchain platform, operates independently of traditional financial institutions and government control. This characteristic aligns well with the ethos of de-dollarization, which seeks to reduce reliance on a single dominant currency. If a new trading currency were to emerge from the BRICS summit, it might trigger increased interest in alternative financial systems, including cryptocurrencies like Hive.
As traditional financial markets experience uncertainty and potential volatility during such transitions, investors may seek refuge in decentralized assets as a hedge against the risks. Hive's decentralized community, consisting of content creators, developers, investors, and users could see a surge in adoption and participation. The community-driven nature of Hive ensures that decisions are made collectively and transparently, offering a level of trust and accountability that traditional financial systems may struggle to match.
Furthermore, Hive's blockchain technology, with its focus on fast and low-cost transactions, could appeal to users looking for efficient ways to conduct cross-border transactions without being hindered by the complexities of traditional banking systems. If such a new BRICS-backed currency gains traction, Hive and other cryptocurrencies might experience increased utilization in global trade and financial exchanges.
In addition, the potential for economic turmoil during the de-dollarization process (if it will infact happen) may lead to citizens seeking alternative means to preserve their wealth. Cryptocurrencies like Hive, which operate independently of central banks and government policies, could become an attractive option for those looking to diversify their assets and protect against the potential devaluation of fiat currencies.
As always, Kiyosaki's predictions have sparked both interest and skepticism, but time will tell how the global economic landscape evolves. While he is known for his sometimes-dire outlook, it's essential to consider diverse perspectives and expert opinions to gain a well-rounded understanding of the complex financial world. I'd love to know your thoughts on this issue in the comment section, do you see the BRICS de-dollarizing the global economy?
Bank of International Settlements Data
Thanks for reading, if you found my post interesting, then remember to hit the follow button so you don’t miss out on future posts. I look forward to your contributions in the comment section.
My name is Edwin Ifeanyi Louis (eil7304) and I love to write about finance and investing, movies, technology, gaming, and fiction on a Blockchain platform called Hive.
