Today, I’m going to dive into an often overlooked yet crucial topic that will have an impact on our economy and, over time, the world of cryptocurrencies.
As you know, the U.S. dollar has a strong influence in the global financial ecosystem.
Over the centuries, it has consolidated its dominant position, influencing much of global development.
In recent times, however, you may have heard the term “de-dollarization.” This is not a new concept. French President Charles de Gaulle mentioned it in 1965, calling for a return to the gold standard.
So, what exactly is the “BRICS Cooperation Mechanism”? The BRICS cooperation mechanism is a group of world economies including Brazil, Russia, India, China and South Africa. According to Goldman Sachs Group, these countries will dominate the world economy, while the established G7 countries will gradually fade out of the market.
It should be noted that the total population of the countries participating in the BRICS cooperation mechanism accounts for 40% of the world's population, and none of these countries is a member of the G7.
The main goal of the BRICS cooperation mechanism is to break the hegemony of the US dollar.
How to achieve? Introduce a gold-backed BRICS cooperation mechanism currency for transactions between BRICS countries, covering commodities such as oil, computer chips, minerals, and use reserve currencies to regulate these transactions.
This would reduce the hegemony of the dollar and benefit countries that create fiscal surpluses.
At the current moment, countries like Russia and Brazil need dollars to import goods, but they will focus on expanding local currency transactions among BRICS members. Argentina, for example, is already taking action.
With dollars in short supply, they are conducting transactions in yuan and using it to repay part of their public debt for the first time.
But what would happen if many other countries also joined the BRICS cooperation mechanism? The dollar will take a bigger hit.
In fact, the gross domestic product (GDP) of the BRICS cooperation mechanism has exceeded 31% of global GDP and has exceeded the GDP of the United States. Another key point involves artificial intelligence.
China has announced that it hopes to achieve global leadership in artificial intelligence in just seven years, and more specifically in 2030, with the support of the entire BRICS cooperation mechanism. "Allow the market, but what role has the United States always played in artificial intelligence?" This will affect the supremacy of the United States in technology and may cause huge damage. Think about the impact Apple and this brand has had on the world. In 2022, Apple's annual revenue will be $394.3 billion.
If China begins to displace this technological advantage, U.S. GDP will take a devastating hit.
Despite the scattered geopolitical context, such as: • Russia/Ukraine war • China's real estate bubble • Bank of China's liquidity crisis • China's demographic issues The road to dethroning the US dollar has begun.
The mainstream media will create "click-through" headlines that raise fears of an impending dollar collapse.
It's worth noting, however, that this isn't a quick process like an on/off switch. It will take a long time, probably 20 to 30 years. About our Bitcoin economy?
We can speculate that given Bitcoin’s neutrality and resilience, it is likely to offer a different solution to gold as it comes from the free market. Gold Standard/Bitcoin Standard.
It is wise to closely monitor global developments to take advantage of investment opportunities that may arise.
