For 15 years, I have discussed the warped notion of U.S. “exceptionalism”; i.e., the belief that the world revolves around the 8% of its population living in America. Most American exceptionalism emanates from America itself…however, some other parts of the rest of the world believe it, too. Not that they matter, as MAJOR powers like the EU, China, Japan, and Russia decidedly do NOT see things that way.
Financially, America is rightfully viewed as a global leader. However, it by no means DOMINATES the world – and with each passing day, becomes less of a hegemonic presence…particularly now that its manufacturing base has been decimated, its dollar debased, its debt parabolically grown, and its reputation diminished.
Monetarily, the entire “First World” was onboard with the dollar-based fiat standard – that THEY created at Bretton Woods in 1944, and validated when they allowed Nixon to abandon the Gold Standard (and thus, renege on Bretton Woods) in 1971. The resulting, massively destructive Ponzi scheme created the explosion of debt, inflation, and wealth inequality plaguing the world today; ultimately, fostering Bitcoin’s creation, with the 2008 Financial Crisis serving as the catalyst.
A decade after the crisis – and Bitcoin’s launch – the world is experiencing a MAJOR monetary crisis, with many currencies at or near all-time lows - including “emerging markets” like China and India, where the majority of the world’s population lives. Trade wars are proliferating and Central banks losing control over interest rates - yielding a political landscape in which nations do NOT have similar interests. This is where Bitcoin’s “game theory” kicks in – as ultimately, ALL nations will realize it’s in their best interest to stop kowtowing to an increasingly destructive U.S. government; and looking out for their own interests…by acquiring, and supporting, Bitcoin.
Much ado is being made about whether the SEC will approve a Bitcoin ETF, when the fact remains that similar products have already been launched – or will be soon – in other nations. None as straightforward as an actual Bitcoin-holding trust, like the SolidX/Van Eck ETF currently under consideration, but similar products that will ultimately be just like the SolidX/Van Eck product.
To that end, I read last night that Brazil’s LARGEST BROKERAGE FIRM – i.e., the equivalent of a Schwab, Fidelity, or Goldman Sachs in America – is launching its own cryptocurrency exchange, to trade Bitcoin and Ethereum. In other words, front-running what big U.S. firms – like Fidelity, Goldman, Morgan Stanley, Blackrock, the ICE, and others – are actively planning today.
Naturally, this can only mean a Brazilian Bitcoin ETF will shortly be proposed – as will similar products in numerous other nations that directly support cryptocurrency or are indifferent to its growth. Heck, many nations will support Bitcoin – if not actively invest in it - to directly challenge the U.S. dollar…while some, like Japan, may do so as a means to reduce their national debt, and re-draw a political map that dollar hegemony has dominated for decades.
So, to those “worried” about whether the SEC will approve the SolidX/Van Eck fund this year, remember that Bitcoin reached $20,000 with no ETFs, and can easily do so again; and an increasingly NON-U.S.-CENTRIC world will embrace Bitcoin whether the U.S. government likes it or not.
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