Home Altcoins News Crypto Tolkien on De-dollarization and Is the Something Else BTC, ETH, LTC, XMR, ADA and others

Crypto Tolkien on De-dollarization and Is the Something Else BTC, ETH, LTC, XMR, ADA and others

Latin American Nations Bitcoin

Crypto Tolkien, Crypto Investor recently expressed, the process of de-dollarization is happening in real time. On the global stage, many nations are moving away from the USD for various political and economic reasons. This leaves an opening for something else to gain a foothold.

We are left wondering is the something else a cryptocurrency like BTC, ETH, LTC, XMR, ADA and others.

He also points to how Central Banks also hold gold in large reserves, for similar reason to USD. It acts as a ‘guarantee’ of the debt, and can help strengthen the financial position of a nation. Former Fed Chairman Ben Bernanke famous said that Central Banks hold gold because of “tradition.”

There are over 33,200 metric tons of gold held by nations and international agencies. In recent years, many nations have increased their gold reserves as they move away from USD Soon, the move away from the USD will be towards holding Bitcoin.

Leaders of nations are both publicly and privately expressing a huge interest in Bitcoin.  El Salvador recently passed a bill formalizing Bitcoin as legal tender.  This is the first step towards legitimizing BTC, and this may lead to nations eventually holding it as a reserve.

Other Latin American Nations also have public officials expressing interest and support for Bitcoin, which includes government officials from Mexico, Panama, Colombia, Ecuador, Brazil, Paraguay and Argentina.

There are no signs that the money printer will be turned off. As such, Bitcoin and crypto adoption will only increase. In fact, Bitcoin is even being adopted by nations. Now, as a legal tender, and perhaps soon as a reserve asset similar to gold.

Those worst hit by inflation are people without assets such as stocks, housing, or gold. Inflation harms the working and middle class the most, as they cannot get more than 0.2% interest on savings. BTC offers a way to protect purchasing power being inflated away.

Smart people including Satoshi Nakamoto realized that inflation was harming many people across the world, and with new policies being implemented by the Fed, it would only grow worse. As such, Bitcoin was created in 2009 as a way to hedge against infinite money creation.

What has happening since then is ever rising prices of assets: housing, stocks, gold. Essentially, if you wanted to keep up with or beat inflation, you needed to purchase and hold assets. Otherwise, you’d have little chance relying only on your salary.

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Maheen Hernandez

A finance graduate, Maheen Hernandez has been drawn to cryptocurrencies ever since Bitcoin first emerged in 2009. Nearly a decade later, Maheen is actively working to spread awareness about cryptocurrencies as well as their impact on the traditional currencies. Appreciate the work? Send a tip to: 0x75395Ea9a42d2742E8d0C798068DeF3590C5Faa5

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