Hello dear readers and followers, the Bitcoin price action has found support in the $21,000 area, which has awakened some emotional stability among investors and traders, but what has been generating more confidence is that there is news where it has been determined that Bitcoin can become a reserve unit of global value of neutral character.
Before moving forward we must first put in context how we have reached this point of asserting that Bitcoin can become a neutral global unit of value reserve, remember that after the Vietnam War the United States began to lose control of the economic and financial system in the world.
The dollar began to weaken within the world's economic and financial system, after the central banks of other countries demanded to exchange their dollars for gold, a request that caused the United States to run out of gold reserves, which triggered the U.S. executive to unilaterally cancel the famous Bretton Woods agreement, and then the situation entered into a frank weakening of the dollar as a reserve of value.
In this sense, it is stated that since then most currencies are not backed by anything and their exchange rates are free-floating, hence, in order to maintain the dominance of the US dollar, the White House reached a clever agreement with Saudi Arabia, in exchange for military protection, the Saudis guaranteed that they would only accept US dollars for their oil, an element that has been maintained to this day.
The crisis that has been generated around the military tension involving Ukraine, Russia, China, the island of Taiwan and the United States has caused the BRICS countries (Brazil, Russia, India, China and South Africa) to intensify their ties, and they plan to expand their alliances and create a global currency, which would bring more chaos to the already deteriorated traditional financial system.
Against this unclear economic and financial backdrop, Bitcoin could become a NEUTRAL asset of value that everyone agrees on, as it is not controlled by any state.
SOURCES CONSULTED
BeinCrypto. Petrodollar: the beginning of the end is near, Bitcoin as a neutral solution. Link
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