Is The Crypto Dethroning Bitcoin And The US Dollar In The Making? The Inevitable Is Coming.
Ladies and Gentlemen, the world is reshaping at a rapid pace right front of our eyes everyday. The global economy and global supply chain will never be the same, sanctions do boomerang. We are just experiencing the tip of the iceberg today. The full impact and severe pain will be felt in 12 to 18 months. The Ukraine conflict is the excuse and justification for what is to come globally in the crypto world. This article will lead you to what is an inevitable major event in the crypto world since Bitcoin’s birth.
Update: May 5th 2023: we all know from the news, BRICS is about to launch a BRICS gold backed currency to drive trading. The UAE, Algeria, Saudi Arabia and others are joining BRICS. This article published a while ago has become a reality. Let’s see when it is reveiled to the world if the BRICS currency is a gold backed digital currency!
The Prelude
Sanctions also create alternatives and new initiatives. In 2014 sanctions applied against Russia backfired. Russia under sanctions stopped buying goods from Europe and instead started to buy goods from other countries in South America and Asia. The increase in export boosted these countries’ economies. The fundamental issue with a change in supply chain: once it is changed, it is changed for good until the next disruption, there is no going back and taking the old route. Our lawmakers in the West seem to forget that.
The West has been more than arrogant with old powerful cultures: Russia, Persian, China, Middle East, and India. When an empire faces a challenge, it will create alliances to secure a victory over the challenge. The pillar for their empire’s prosperity, power, and success has been trading, complemented with the ability to protect, secure, and acquire new resources using their military. The plan to revive the Silk Road is a clear testimony that the old is becoming new, with intentions to put the Suez canal in second to none position on the trading map. When there is cross-countries trading, using one currency facilitates the exchange of goods and payment, the US dollar got its power from this dynamic.
The Ancients
In the West, we have an Instagram memory, what we see one minute is forgotten the next. Old cultures do not forget. US lawmakers are trying to have China denounce Russia, it will not happen! China is diplomatic but has a score to settle with the US. There is an old French saying: revenge is a meal you consume cold. Indians call it Karma, inshallah in the middle east. The biggest flaw with the Western mentality and arrogance: we take other superpowers’ kindness and diplomacy for weakness until we push it too far.
China has not forgotten in 1991 NATO, led by the US, bombed Europe. Once, we had a country in Europe named Yugoslavia. US pilots bombed the Chinese embassy in Belgrade killing Chinese civilians and officials. We may call it collateral damages, China remembers it differently. Iran will never see the West the same way after sanctions and commander Soleimani’s assassination. India has similar scares from recent wounds inflicted by the West, so the Middle East.
While we are playing “Call of Duty “ in the west, the rest of the world is preparing to play a game called “Call of Dignity and Honor”. As I am writing this article, China just suffered a tragedy with the Boeing crash, and instead of sending sympathy messages, the US officials sanctioned China the same day. Respecting cultures is a lost cause for western officials.
What we may be also witnessing is an Anglo-Saxon ethnic oppression: Slavic with Russian, Persian with Iran, Chinese with China, Indus with India, Saudi with Saudi Arabia, and Ottoman with Turkey. Ethnic conflicts never ended well in history.
Why Saudi Arabia and Turkey?
- Saudi Arabia: the US trying to involve the Kingdom in 9/11 and trying to incriminate Prince Mohammed Ben Salman in the Khashoggi’s murder, it is not acceptable for the Kingdom.
- Turkey: President Erdogan hasn’t forgotten the coup fomented in the US in 2016. Erdogan was warned right before the coup by the Russian intelligence and left the country in a Russian plane saved from the coup. The Ottoman Empire has also a serious problem: the Bosphorus strait is under the Montreux Convention, Turkey has no say so on the use of this segment of Turkey which does not align with the Ottoman spirit. A new canal is being built which will put back the access to the Black Sea under Turkish control, the Bosphorus strait may become unnavigable by accident or intent, giving access to the Black Sea under full Turkish control. President Erdogan seems to be pro-Russia one day and then pro-US the next, it could be confusing, but it is Erdogan’s way to state: The Ottoman Empire has no boss, fact supported with the purchase of Russia’s S400.
- Saudi Arabia and Turkey both also share another pain: Israel gets F35 and other leading-edge military weapons, when Riyadh and Ankara ask for it to protect their land they have to beg and are taken for a dance by our senile western lawmakers. The message to the Kingdom and Turkey is clear: “we don’t trust you as much as we trust Israel, your country is not as important as Israel, and by default Israel is leading the region and you come second.”
- The same goes for South American and African countries when forced to accept political or commercial conditions in order to get a loan from the IMF and other western financial institutions.
The west has become extremely liberal over the past 20 years, and it is now at a point where western cultures are strongly deviating from the older culture beliefs and cultural foundations.
Jurassic Park
Our aging lawmakers, who for most of them were born before a floppy disk, are out of touch with us the people, they are disconnected from reality. They are taking us flirting with WWIII daily since the beginning of the Ukraine conflict adding fuel to the fire.
When it comes to the crypto world, they are assuming creating a digital “fiat” currency would entertain the masses. A fiat currency even in a digital format is still a fiat currency. They just don’t get it. We all know the digital Dollar and Euro will be a tool to increase government control and reach into our personal life. Our dinosaurs seem to believe we are idiots.
Idiots they think we are when planning to issue vouchers worth 300 US dollars per household to cope with the rising price of energy. Where do you think that money will come from? Your pocket.
With their careless sanctions our lawmakers are showing to the world they do not care about maintaining a global economic balance. This is not acceptable for a country trusted with its currency as a reserve. The world is watching their moves and what other countries see is not a pretty picture. The message our US and EU lawmakers are sending: “if you use our infrastructure we will use it as a weapon, if you trust us to hold your reserve we will seize it, if your corporations and citizen invest and spend in our country we will seize their operations and assets”. The trust in the US and EU was eroding but just died with the Ukraine conflict. Within the next 5 years, we will see countries around the world unleashing from the west. The Yuan is gaining popularity, but not a practical long-term solution.
Another strong toxic message the West is sending, as we have seen in the past with other players in politics, Jens Stoltenberg is retiring from being the head of NATO to where? Being the head of Norway Central Bank. Apparently military expertise is needed in the financial world.
When dealing with other countries our western lawmakers think they are superior and can command and abuse. How long can this last?
Pres. Biden warns that food shortages are “going to be real,” … Our dinosaurs are recklessly making decisions that will directly impact the welfare of their citizen, and have citizens pay a heavy price for it while lavishly wining and dining. The Russian and Ukrainian clash is Russia and Ukraine’s problem, John Doe in Biloxi Mississippi has nothing to do with it, why he and his family should be penalized for it? This is the perfect primer for antigovernmental riots, in the magnitude of the French Revolution. The next US election will have to be rigged to an insane level to have Biden reelected. Political chaos and social unrest are coming.
President Biden repeatedly insulting President Putin is another strong message to foreign leaders: 1) he has not the tenure to be a leader, only banana republic leaders defecate verbally 2) if Joe Biden takes the liberty to insult a foreign leader, behind closed doors he probably uses insults to speak about other foreign leaders as well. Respect is the apex in diplomacy with older cultures.
The only level-headed leader in the EU is Hungary’s PM, Victor Orban, and when challenged on his decision not to participate in the sanctions against Russia or take a side in the conflict responded “Hungary’s concern is Hungary”. Hungary PM is thinking about his country and people first.
The Landscape
The landscape has been in the making for the past few years, with its boundaries clearly defined a few weeks back when the sanctions against Russia were imposed. The landscape is clearly shaped by countries that did not jump on the sanctions bandwagon. Basically the world except for the US, Canada, some European countries, and Australia.
The way the West is implementing sanctions is another vicious approach to implementing sanctions, the sanction packages approach is sadomasochistic. They keep on churning the knife in the wound on a weekly basis to try to inflict pain with additional sanctions, not only to the Russia government but also to the Russian citizens who have nothing to do with their government decisions. The rest of the world is watching, not only it is not working but what they see is not pretty.
The landscape is also shaped by current and new trade agreements, Chinese and Russian led initiatives. While our attention is on the Ukraine conflict, Eastern, Middle Eastern, African, and South American countries are signing significantly powerful trade agreements on top of the one already signed and implemented such as BRICS. The allies are uniting.
For third countries, sanctions are opportunities to replace goods provided by the West, resulting in improving their economy while taking away market share from the West. There is a need to have one currency to facilitate and support the cross-countries trade agreements.
The West key players are about to find out they are left with no friends to play with, in an already challenged domestic economy.
The Tool
We are all aware China, Russia, India, and other countries have been accumulating gold as a reserve at a fast pace. Major global powers have been dropping the dollar as a trade and reserve currency at a fast rate. The value of a reserve currency is not only its use on a global scale for trading and its relation to commodities, but also based on trust and adoption.
Countries trusted the dollar as a safe investment and the US managing their reserve. This is all gone now, after Iran, Syria, Venezuela, and now Russia seizing or freezing reserve as invalidated the US Dollar or Euro as a reserve currency, our senile western lawmakers destroyed the business case for their currency has a reserve. The US and EU as custodians of another country’s assets are too risky for foreign countries today. The message is loud and clear: unless your desire is to be a vassal state with an axe hanging over your head ready to drop anytime when you sneeze the wrong way, then the US Dollar and Euro are for you.
This leads us to the inevitable creation of universal gold-backed crypto, architected and created by a Chinese and Russian cooperation, just like the new Silk Road and supporting the Silk Road and other international trade agreements.
Some of they key benefits:
- Bypass the West banking system and SWIFT
- Working 24/7 unlike SWIFT
- Fast with transfer within seconds
- Preventing the West to use it as a weapon
- Single currency to support trade activities across the globe with no need for currency exchanges, a Bitcoin on steroids. Bitcoin has been leading the crypto world, just like some segment of our history, his son will rule and be more powerful.
- The world is ready to drop the US Dollars for global trading, they need a replacement
- Show me some gold and I will give you some crypto, no more fiat, the end of the Bretton Woods system as we know it, which is strongly challenged nowadays with countries printing bills at will out of thin air
- It is not only a foreign perspective but also a domestic one, we lost trust in our currency in the West
- A paper bill is becoming a thing of the past, just like digital format books have dethroned paperback books
- We can add more benefits to the list.
The CBDC initiative in the west is being architected, rather a complicated and difficult approach to government issued digital currency, giving control to western government to create digital currency at will, with the intent to counter the risk posed by so-called “stable coins”, just a bad business case. Any currency is as good as it is widely accepted and used. If the US Dollars and Euro are dethroned in global trade so will any digital currency representing it.
The Submission
The sanctions backlash will be heavy and will be paid on both sides but mostly in the West as time goes, the difference is: the East can live without their foofoochino at the nearest Starbucks and use regular coffee, the West will have a hard time adjusting to the changes in lifestyle and cost of living triggering panic attacks, fear, and hate. It will be a blow on a material and emotional level. The younger generations in the West are just not prepared for hardship.
The inability to trade in US Dollars and Euro will push the West into submission and force the West to accept the universal gold-backed crypto by buying it to trade globally and forcing them to backtrack or act against the sanctions they imposed or about to be imposed on Russia and China.
We are not sure how much gold there is in Fort Knock and other countries in Europe no one knows how many of the universal gold-backed crypto the West will be able to buy with their gold as collateral.
When imposing severe sanctions on a country, you also use your last ammo. The country under sanctions has nothing to lose then and is cornered to retaliate with crippling blows. The next stage could be global war and no one is interested in it, it would be total global destruction.
A military force that has very little oil to power their military equipment, as no GPS (Russia demonstrated they can take satellites down a few weeks back), is running very thin on food supply and starving troops, severe domestic problems, a collapsed economy, as only one and one only option: to surrender. It doesn’t matter how powerful your military is.
The West is trying to impose a siege on Russia, a strategy defined by blocking all resources in and out of an enemy location to weaken the enemy and have the enemy surrender, exactly what anti-Russian sanctions and NATO are aiming at achieving, with one slight miscalculation: the West is now isolated and surrounded by countries not participating in sanctions. Like a Viking episode, the army putting the siege around the enemy’s fort is not realizing or realizing too late, they are surrounded by the enemy allies, squeezed between the enemy fort and the enemy’s allies. A strategy used over and over again in history, always ending in a massacre for the attacker.
The When
The go-live opportunity would be in 18 to 24 months from now. Why? The West seems to have the upper hands with sanctions however they are quickly realizing the impact of the backlash leading to a severe price to pay for the sanctions they applied and will apply in the future at the detriment of their countries. The perfect storm is brewing:
- Global supply chain rearchitected will bypass currently established architecture, providing more opportunities for third countries and taking away from rich Western countries, not so rich anymore as they used to be.
- It has not even started yet and manufacturers are running out of parts to manufacture, the spring seeding season for the agricultural sector is at risk, this season will be hard and doomed for the following seasons.
- A fatal blow for some small businesses who had already endured the Covid impact and can’t take another blow
- Losses of jobs and unemployment increase
- Triple fold good impact for goods: not only a rise in the product price but also a rise and shortage in diesel increasing the cost of transporting the good to your nearest store
- Inevitably the governments will have to cope with by raising taxes and blame the Russians as usual
- The collapse of the gig digital economy: “Sorry buddy, I don’t need your “guru” course on becoming a coach of coaches. What I need is meat and mashed potatoes!”
- Feds will inevitably hike the rates
- When hardship comes to play in a country crimes rises
- The scarcity of goods and inflation will trigger localized conflicts in some countries around the globe.
- Bird’s flu and other animal diseases impacting our food supply is already at paly and the impact will be worst
- Severe weather conditions: harsh winters, earthquakes, heavy storms, and droughts impacting agriculture and the domestic economy. Our senile lawmakers are making a reckless bet capitalizing on the hope mother nature will be on their side.
- Lack of fertilizer and grains impacting the agriculture and food supply
- As already seen, countries banning export of grains and other goods to protect their citizen from a domestic food shortage, will create food shortage in the West
- In a year from now citizens will not blame Russia but their government for the pain they are experiencing leading to antigovernmental protest and riots. History is full of example when masses facing poverty and hunger get violent
- The usual will take place, the 1% will be smiling it is now the perfect timing to buy low from the masses and make a profit reselling it to the masses by adding some form of Machiavelli instrument to be used by the masses to buy at premium price what was bought from them at a steep discount, and can afford anymore.
- More strange events occurring reducing the supply such as the latest hit on Saudi oil infrastructure leading to a reduction in production right when the US and EU are trying to secure oil production to replace the Russian oil ban
- And more…
It is with sadness that I am reading the news every day, to witness our senile lawmakers aggravating and escalating daily a situation that has already reached a point of no return and leaving us, the people, to cope with the damages. The sanctions backlash momentum is increasing daily.
There is so far the West can go blaming Russia or China for domestic or foreign policies failures. Only incompetents point the fingers without taking responsibilities for their actions. That childish clown show is not working anymore, crypto popularity is also an indicator that we, the people, in the West do not trust the western system anymore.
The Implementation
The implementation will be easy:
- China has already the digital Yuan in place, technology and infrastructure is already tested and proven
- China UnionPay has been in place for a while, a competitor of Visa and Mastercard in some countries
- Russia just shifted to the Ruble and Gold for energy and other global transactions with “hostile countries” (Russia used to refer to westrn countries as partner, not anymore). Russia will also accept Bitcoin as payment for energy as stated by Pavel Zavalny, the chairman of Russia’s Congressional energy committee. The shift was easy boosting the value of the Ruble. Bye Bye US Dollar and Euro
- The adoption part of the implementation is a no brainer, with open trade agreements and with countries observing in the background what is happening to the Russian Federation, Syria, Venezuela, and Iran and the West freezing reserve, and seizing Russian citizen assets (Government and Citizens), the conclusion is simply: our country can’t anymore trust the West.
This last point about trust is more profound than it may sounds, it is about a country’s security, economy, and stability. As demonstrated by the latest events, a foreign country will be at risk by leaning on the West. Foreign private and commercial investments in the US and Europe will decrease as the risks outweigh the benefits. The dollars and euro just lost their use case and the trust in them.
The cash (corporations and wealthy citizens) will flow in a different direction, not west anymore but to neutral countries such as the Emirates, increasing the need for a cross-country common digital currency to facilitate future investments.
The Inevitable
A solid use case for a gold-backed universal Chinese and Russian created crypto exists and is supported by recent global events. It is not if but when it will materialize.
Will this gold-backed crypto dethrone the king the hill Bitcoin? Absolutely!
Will the US Dollar crash and lose its position as a reserve currency? You better believe it!
Will the gold-backed crypto become the crypto of cryptos? Yep!
Will this international gold-backed crypto reshape the crypto world? Yes!
Will a digital US Dollar or Euro be able to compete with it? Not!
Will the gold-backed currency takes priority over Investing in real gold for the average citizen? Yes, I will explain why in another article.
Can any other crypto compete with a universal gold-backed crypto used internationally? I don’t believe so. Even in the event of crypto-backed by big tech, after the election, Covid, and Ukraine war the big tech thought us they can suppress freedom of speech and shut down your account as they please with no justification. There is no trust left in big tech companies and their crypto will be banned in Eastern countries.
So far crypto adoption is at an infancy stage: newbies face a world of confusion too many coins, government-controlled media outlets have done a good job scaring the average Joe from investing in cryptos, the average Joe is confused if he should know blockchain technologies before investing, …etc. The universal gold-backed crypto used in many countries, endorsed by governments and financial institutions around the world will be as good as gold increasing the average Joe level of confidence and triggering a mass shift to cryptos.
Would I buy this new crypto? You bet, so most of us! Welcome to the revolution!
When the world is changing, we have to change with it!
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