The potential for Bitcoin to serve as an alternative to the US dollar is gaining traction, with economist Jeremy Siegel asserting that countries may ultimately abandon the US dollar for Bitcoin.
Trump’s mixed messages about his support for Bitcoin and simultaneous opposition to BRICS initiatives illustrate a complex landscape.
For over a decade now, the BRICS alliance (Brazil, Russia, India, China, and South Africa) has been advocating for “de-dollarization” to lessen reliance on the U.S. dollar in international trade and financial transactions. Despite facing hurdles along the way and failing to diminish the Western currency’s dominance, Jeremy Siegel, an economist at Wisdom Tree, a financial services company, supports the analogy that de-dollarization is inevitable.
As reported by Benzinga, Siegel’s stance underscores Bitcoin’s rising significance in the global financial system. Siegel commented on former President Donald Trump’s ongoing endorsement of Bitcoin (BTC), highlighting its potential to undermine the dominance of the US dollar more significantly than gold or currencies from BRICS nations.
Siegel’s observations extend beyond the immediate tensions among BRICS countries. Trump has publicly celebrated Bitcoin, raising eyebrows given his critical stance toward BRICS efforts to create a new reserve currency. “It’s curious that Trump threatens 100% tariffs on BRICS nations while simultaneously endorsing Bitcoin’s price rise,” Siegel remarked, reinforcing the idea that Bitcoin is perceived as a potential global currency akin to what BRICS is pursuing.
Furthermore, Siegel argues that Bitcoin poses a more substantial threat to the US dollar as a reserve currency than any initiatives stemming from emerging market economies. Trump’s positive outlook on cryptocurrency could propel its adoption on a wider scale, prompting additional countries to shift away from traditional dollar reserves.
Bitcoin’s Dominance Increases
As we have reported multiple times, the Russian government is adopting a comprehensive strategy that leverages cryptocurrencies as essential tools to navigate the sanctions imposed by Western nations. With China continuing to impose strict regulations on cryptocurrency, Russia sees significant growth opportunities; currently, there are around 17 million cryptocurrency users in Russia.
Additionally, Bitcoin’s recent surge to $100,000 earlier this year has caught the attention of major institutional investors, prompting firms like BlackRock to significantly bolster their holdings. MicroStrategy has further solidified its commitment to Bitcoin, purchasing an additional 21,550 BTC for $2.1 billion, with an average price of about $98,783 per coin.
Amidst this increased adoption, President-elect Donald Trump has expressed mixed sentiments. At a rally in Wisconsin, he cautioned that countries moving away from the dollar could face severe consequences, including the imposition of a 100% tariff on their goods by the US. Despite these warnings, he has shown support for the establishment of a US Bitcoin reserve, signaling an unexpected alignment with the cryptocurrency adoption seen in BRICS nations. With Trump’s recent victory in the 2024 election, significant challenges may loom for the BRICS.
As of now, BTC is trading at $98,024, reflecting a 0.80% increase over the past day and a 2.07% increase in the past week. This demonstrates the volatility inherent in this rapidly evolving market.