As a way of breaking US dollar hegemony, BRICS countries have started pushing for greater Bitcoin adoption.
Since the end of the second world war, the United States has consistently been the dominant global superpower. The Soviet Union vied for superiority during the Cold War but ultimately failed as it lost control of its satellite states. This was evident when the Berlin Wall came down in 1989.
In recent years, American hegemony has been challenged by China, a nation which has accumulated tremendous wealth since opening up its economy to the world. China now seems poised to usurp global power as it continues to engage in a form of financial imperialism across the globe (for more, read Joanna Chiu’s “China Unbound”). Today, both Russia and China are part of a global cadre known as BRICS, which includes Brazil, India and South Africa — with other countries, such as Turkey and Saudi Arabia, perhaps waiting in the wings to join as well.
In case you haven’t been paying attention, the world is undergoing a major paradigm shift, with BRICS at the center. Banks across the world are failing, Saudi Arabia and Iran are negotiating historic peace talks and countries are beginning to deviate from the U.S. dollar as the world reserve currency.
An important question to consider, then, is how does the current state of geopolitics and macroeconomics shape the future of a hyperbitcoinized world? I acknowledge that nobody can predict the future with any real certainty, however, I would like to share my vision of how game theory plays out over time.
I believe that, over the next few decades, the emergence of BRICS as an alternative to U.S. hegemony will cause the global economy to evolve in three phases: Phase one will be a pivot from a unipolar financial world to a multipolar one. In phase two, Bitcoin becomes a medium of exchange and unit of account for many nations. In the third and final phase, we experience real hyperbitcoinization.
Crypto analyst filbfilb on Twitter uses tops and bottoms to form a “Bitcoin price curve” to assess whether Bitcoin will reach $1 million in the next cycle.
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