Pax Bitcoinica - The Dawn of a New Monetary Order
Lately, I’ve found myself diving into the Nihon Keizai Shimbun. While the language barrier is still a challenge, the insights are literally off the hook, especially when it comes to understanding global financial dynamics.
One recent piece caught my attention, the potential for a seismic shift from the dominance of the U.S. dollar to Bitcoin under the new Trump administration. Strap up let’s dive in.
Trump’s Role in Shaping the Bitcoin Narrative
For the first time ever, Bitcoins price rose past $100,000 in December 2024, propelled by speculation that Trump’s administration might ease regulations on crypto.
With a market cap now exceeding $2 trillion, Bitcoin has outpaced Tesla and is inching closer to Amazon’s valuation. In GDP terms, Bitcoin is now as large as countries like Canada and Brazil—a reality no one could have envisioned a decade ago.
This meteoric rise has led to the creation of the new slang: Pax Bitcoinica. Drawing inspiration from historical eras like Pax Britannica and Pax Americana, this phrase describes a future where Bitcoin replaces the dollar as the foundation of global economic stability.
But what does that mean for the dollar’s supremacy?
The dollar’s share of global foreign exchange reserves has been steadily shrinking. According to IMF data, its share is now at 57.4%, the lowest since the turn of the century.
In contrast, during the early 2000s, the dollar accounted for over 70% of reserves. While it still dominates as the primary reserve currency, the trend is clear, its influence is waning.
This decline is not just an international phenomenon. Domestically, Trump’s rhetoric and policy direction suggest an openness to alternatives like Bitcoin.
According to Henry Farrell, a professor at Johns Hopkins, Trump’s inner circle includes Bitcoin advocates and deregulation proponents. If Trump prioritizes loosening restrictions on cryptocurrencies, the dollar could face even greater challenges.
Challenges from Emerging Economies
On the global stage, the BRICS nations—led by China and Russia—are actively seeking to reduce their reliance on the dollar.
Russia, excluded from major financial networks, has been pushing for a common currency that bypasses the dollar entirely.
China, facing its own economic pressures, is also reconsidering its dollar-heavy foreign reserves. Economists like Zhang Ming have publicly advocated for reducing dollar holdings, signaling a growing consensus in Beijing.
If these movements gain traction, the world could see a more fragmented monetary order, with Bitcoin positioned as a neutral, decentralized alternative.
Could Bitcoin Really Replace the Dollar?
The idea of Bitcoin becoming the world’s key currency might sound like science fiction, but the foundations are being laid.
Unlike the dollar, Bitcoin isn’t tied to any one nation, giving it an edge in a world increasingly skeptical of U.S. monetary policy.
In conclusion
A decade ago, Bitcoin at this price was unthinkable. Today, it’s a reality. While the dollar’s glory days may not be entirely behind it, the cracks in its dominance are becoming harder to ignore.
Bitcoin believers are gaining influence globally. The future is no longer about who controls the dollar. It’s about who controls belief—and right now, Bitcoin has the world’s attention.
Thanks for reading. Kindly share your thoughts in the comments.
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🧐 Interesting reading key! This reading that might be interesting for you
🇮🇹 https://inleo.io/@italiadash/evitare-la-spirale-di-morte-di-bitcoin-jog?referral=italiadash
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