3 - 5 minute read
As we delve into the ever-evolving world of finance, it becomes increasingly evident that keeping abreast of the latest developments is paramount to ensuring informed investment decisions. One of the most compelling reasons to invest in Bitcoin today is the looming death of the US dollar, which has been the world’s reserve currency for over a century. The signs of this trend have been brewing for quite some time, and now, it appears we are starting to see entire countries shift away from the US dollar to trade, make purchases, and exports.
However, this isn’t the first time that the world has seen a change in the reserve currency. History shows us that all previous world reserve currencies eventually failed due to the act of overprinting, which ultimately devalued the currency and rendered it worthless. As we trace back in time, we can see that the creation of the Federal Reserve in 1913 was a pivotal moment that paved the way for the dollar to be the reserve currency of the world. Yet, since then, the buying power of a dollar has decreased significantly, with the US dollar increasingly showing signs of the same trends that led to the downfall of previous world reserve currencies.
What makes the current situation more intriguing is the fact that China and Brazil recently reached an agreement to ditch the US dollar in trade and use their respective currencies, most likely China’s yuan. This announcement comes after China and Russia’s agreement to do the same, given the numerous sanctions against Russia. Thus, Russia is now trading with other countries in its own currency, and not in US dollars.
This shift away from the US dollar has serious implications for the global financial landscape, and the stability of the world’s reserve currency is at risk. However, Bitcoin presents itself as a viable alternative that is not subject to the same risks as traditional currencies. Unlike traditional currencies, Bitcoin cannot be inflated or manipulated, making it an attractive store of value.
Bitcoin is currently trading at $28,300, and there is a high possibility that it could break $30,000 in the near future. With a plethora of investors seeking alternatives to the dollar, including Bitcoin, it is no surprise that Bitcoin is still holding up very well. Moreover, it is on course for its best quarter since 2021, and every time Bitcoin approaches its next halving event, which is only 400 days away, it shows an impressive recovery. Fundamentally, the hash rate of Bitcoin is at an all-time high, and the price is approaching its previous all-time high.
However, it is essential to note that investing in Bitcoin carries a high level of risk, and we cannot stress enough that we are not financial advisors. It is imperative to conduct thorough research and make informed decisions based on your own risk tolerance and investment goals. Nevertheless, the death of the dollar is a significant trend that must not be ignored, and Bitcoin may well be a safe haven in the changing financial landscape that we find ourselves in.