The Erosion of Dollar Hegemony and the Rise of Crypto Assets

Founding members of the BRICS countries discovered a concerning trend during their visit to South Africa. This emerging national alliance is considering launching a gold-backed Crypto Asset. This prospect has unsettled many American investors. If this emerging Crypto Asset is used for international oil transactions, it could signify the end of the dollar's dominance in this strategic economic sector.

The large-scale abandonment of the US dollar may lead to a massive influx of dollars back to the United States, bringing devastating inflation risks to the purchasing power of the American public. In the face of this severe situation, some investment experts recommend large-scale investments in assets that can retain value during high inflation periods, such as gold, silver, and especially Bitcoin.

Bitcoin is considered to have many advantages in avoiding economic turmoil. Its deflationary nature and increasingly widespread international adoption make it an ideal tool for protecting personal wealth from potential currency crises. Although the Bitcoin market is highly volatile, it is now seen as one of the most reliable investment options.

Some experts refer to fiat currency as "fake money"; in contrast, they see gold and silver as "God's money," while Bitcoin is called "people's money." This reflects a distrust of the traditional financial system and a preference for decentralized currency.

Bitcoin is considered a decentralized currency, free from government and bank control and intervention, thus offering greater freedom and security. Some investors compare Bitcoin to gold and silver, referring to them as "real money," while fiat currency constantly depreciates due to government monetary policies.

One important reason investors are gradually favoring gold, silver, and Bitcoin is their liquidity. Compared to assets with lower liquidity like real estate, these assets are easier to buy and sell during market fluctuations. Moreover, holding Bitcoin is considered an effective way to hedge against inflation.

Some investment experts have made optimistic predictions about the future price trend of Bitcoin, expecting it to reach $100,000 or even higher in the coming years. However, whether these predictions can be realized still needs time to verify.

In any case, Bitcoin and other Crypto Assets are challenging the traditional financial system and may play an increasingly important role in the future global economic landscape. Investors should closely monitor developments in this area and make informed investment decisions based on their risk tolerance.