Bitcoin: Russian Central Bank Mining & RFK Jr. Endorsement

*This content is for educational purposes only and should not be considered financial advice*

“The Bank of Russia is working on a bill that will introduce an “experimental legal regime” for cryptocurrencies to be used exclusively in export-import deals, the head of the regulatory agency, Elvira Naiullina, said on Monday, according to Russian news agency TASS.” (1)

This news from the Russian Central Bank and the geopolitical context I am about to lay out create a clear picture indicating that every long-term savings portfolio manager/owner should consider including some Bitcoin to hedge against inflation. Its design makes the technology the safest of any crypto without getting too technical, its adoption gives it the most staying power, and its market capitalization makes it the least volatile cryptocurrency. Geopolitical news, combined with exploding and unsustainable government debt, is resulting in the quicker-than-expected demise of the US dollar. However, as a last attempt to retain control over the failing monetary system, central banks will attempt to roll out Central Bank Digital Currencies (CBDCs), likely using the upcoming financial crisis to encourage its adoption through incentives only accessible through their dystopian surveillance tool (CBDC).

The US dollar’s status as the world reserve currency has thus far protected it from the worst impacts of inflation since it’s used for purchasing oil from Saudi Arabia and in global trade. However, the following recent geopolitical events exemplify growing momentum against the dollar for international trade, collective fatigue with US Hegemony, and shifts in global power towards BRICS nations in an emerging multipolar world:

The Bank for International Settlements (BIS) recently announced it would allow central banks to hold up to 2% of their assets as crypto. (5)

The Russian economy is predicted to grow 2.1% in 2024, meaning – despite all economic sanctions from America and the West, it is now growing over twice as fast as the US (forecasted to grow 1%) and the UK (expected to grow 0.9%). (6)

Saudi Arabia is openly talking about being open to trading oil in other currencies and has already traded their oil in the Chinese Yuan and the Kenyan Shilling. (7), (8)

Saudi Arabia and Russia have both expressed interest in using Bitcoin to trade oil. (9), (10)

America’s Middle Eastern allies (including Saudi Arabia, Turkey & the UAE) are all deserting them on their policy of isolating Syria to remove their leader, and are reopening diplomatic channels. (11), (12), (13)

Iran & Saudi Arabia have restored diplomatic relations and are closer to making lasting peace (Iran was the principal adversary from which Saudi Arabia needed US protection). (14)

Russia will conduct all trade with China using the Yuan. (15)

Brazil and Argentina have called for a currency for Latin America. (16)

The Association for South East Asian Nations (ASEAN) is publicly considering dropping the US Dollar, the Euro, and the Yen simultaneously. (17)

France recently purchased natural gas from China using Yuan, and their leader recently called for reducing Europe’s reliance on and following of America. (18), (19)

Egypt, Ethiopia, Saudi Arabia, Iran, and other influential upcoming countries are openly musing about joining the BRICS economic block, which is considered a challenge to the current financial system. (20)

Every country that has tried to ban cryptocurrency, including China, Nigeria, and India, has failed miserably because bans are effectively unenforceable. (21)

The last major shift in the global monetary system happened when President Nixon took the dollar off the gold standard. Many people today do not know that dollars in America were once redeemable for a fixed amount of gold. In ancient times before Egypt & Mesopotamia, money began as shells and beautiful or useful objects, transforming into barter systems trading food, then coins, redeemable paper money, fiat money (no longer redeemable for assets), and centrally controlled digital money. Then, finally, in 2008, during the financial crisis, the Bitcoin whitepaper was released (2), and its network was launched. The revolutionary technology enabled the conveniences and efficiency of centrally controlled digital money without the concentration of power that comes with entrusting control of the money supply to a small group of unelected people running the federal reserve. The aforementioned geopolitical circumstances will hasten the adoption.

However, like every evolving industry whose workforce is being disrupted by newer technology, the benefactors of the current financial system are doing everything they can to delay the inevitable. Despite all the previously mentioned geopolitical news that favors Bitcoin adoption, the resources available to the central bank cartel are far more extensive than most other industries facing disruption have had at their disposal. The recent targeting of banks servicing cryptocurrency firms (Silicon Valley Bank, Silvergate Bank, and Signature Bank) during the Biden administration’s “Operation #ChokePoint2” is the latest reaction to the pressure being felt by the current financial establishment manifested through their weaponization of financial regulators (3).

The recent dollar weaponization against Russia and any country that contradicts America’s imperial interests through sanctions, and the aggressiveness of NATO on the world stage, are the primary factors driving nations away from the dollar, and US debt, to unsustainable levels. Within the US, surging Presidential Candidate Robert F. Kennedy Jr. has noted Bitcoin provides America (and the world) an escape route from potential financial ruin.

““The recent crackdown on crypto blocks exit ramps, removes alternative rails, and strengthens government control over both the financial and political systems,” explained Kennedy. Furthermore, he discussed the massive monetary expansion that took place in America for well over a decade. “Between 2008-2022, the Fed partnered with a handful of big banks to print $10 trillion — ten centuries of wealth in 15 years — a bonanza for the banksters,” he wrote.

Kennedy also asserted that Bitcoin, the peer-to-peer electronic cash system, is giving people the means of protection from the financial turmoil that will lead to an inevitable crash. “Cryptocurrencies like bitcoin give the public an escape route from the splatter zone when this bubble invariably bursts,” Kennedy emphasized. “So, the White House is colluding with the banksters to keep us all trapped in the bubble of profiteering and control,” he added.” (4)

Immediate adoption and holding of Bitcoin as a reserve asset, as RFK Jr implied, would send its price from the current level (about $30k) into the millions. Alternatively, America, BRICS, or another entity could transform their (or develop a) currency that becomes a reserve currency and uses Bitcoin as a redeemable asset backing that currency up. Regardless, Bitcoin’s code ensures a limited supply of it – only 21M will ever be minted according to the open-source network anyone can use and verify through the freely accessible code. The recent collapse of Credit Suisse and the forced sale of its shares at an 80% discount exemplify the counterparty risk removed when placing your wealth in an asset that can be efficiently self-custodied, so the upcoming turbulent economic times (the worst trauma of which will be driven by inflation) make Bitcoin a more attractive savings mechanism than ever.

Because of the long list of benefits, only a few of which have been discussed here, the question is not if but when and who will maximize the economically empowering opportunities Bitcoin offers.

Sources

(1) Russia Plans to Mine Crypto for Cross Border Deals Says Central Bank

https://www.coindesk.com/business/2023/04/19/russia-plans-to-mine-crypto-for-cross-border-deals-says-central-bank/

(2) Bitcoin Whitepaper

https://bitflyer.com/en-us/s/glossary/bitcoin-whitepaper

(3) Banking Crisis: What Really Happened?! Hearing Tells All!

https://www.youtube.com/watch?v=r6iwEd9DI_U

(4) US Presidential Candidate RFK Jr. Says Bitcoin Provides an Escape Route from Financial Turmoil

https://news.bitcoin.com/us-presidential-candidate-rfk-jr-says-bitcoin-provides-an-escape-route-from-financial-turmoil/

(5) BIS Sets Limits on Bank Exposure to Crypto Markets

https://www.pymnts.com/cryptocurrency/2022/bis-sets-limits-on-bank-exposure-to-crypto-markets/

(6) IMF Predicts Russian Economy to Rebound in 2023