Bitcoin Gains Momentum as US-Saudi Petrodollar Agreement Ends
Saudi Arabia Petro dollar : Bitcoin (BTC) poised to benefit from the termination of the US-Saudi petrodollar agreement. Furthermore, the financial world is bracing for a seismic upheaval following Saudi Arabia’s decision not to renew its long-standing security arrangement with the United States, which expires on June 9, 2024.
This significant decision enables Saudi Arabia to sell oil and other commodities in a variety of currencies. These include the Chinese RMB, Euros, Yen, and Yuan, rather than just US dollars. Additionally, the usage of digital currencies such as Bitcoin could be studied.
US-Saudi Petrodollar Deal Ends
The most recent development is a substantial change from the petrodollar system created in 1972, when the United States untethered its currency from gold. Furthermore, the decision is expected to exacerbate the global trend of turning away from the US dollar, with Bitcoin set to benefit considerably from this shift.
Saudi Arabia has announced its participation in Project mBridge, a cross-border trial involving China’s central bank digital currency (CBDC). The move demonstrates its determination to diversify its business ties. The Bank for International Settlements (BIS) has announced Saudi Arabia’s complete involvement in Project mBridge.
The project involves central banks from China, Hong Kong, Thailand, and the United Arab Emirates. According to Reuters, Josh Lipsky of the Atlantic Council stated that “the most advanced cross-border CBDC project just added a major G20 economy and the largest oil exporter in the world.”
The mBridge platform, which is already in the “minimum viable product” stage, promises to simplify cross-border transactions with CBDCs. Furthermore, the platform is compatible with the Ethereum Virtual Machine, the foundation of the Ether cryptocurrency network. This opens up new options for digital currency transactions.
How Will Bitcoin Benefit from This Development?
Doctor Profit, a well-known cryptocurrency expert, claimed in a post on X that the US-Saudi petrodollar arrangement has finished and will not be extended. This will force the US to produce a lot of fresh USD!” The anticipated rise in USD printing is expected to result in higher inflation.
As inflation rises, the value of fiat currencies such as the US dollar erodes. Furthermore, it would encourage investors to seek refuge in alternate assets. Bitcoin, with its fixed quantity and decentralized character, stands to benefit the most from this transformation.
Furthermore, the analyst anticipates a bullish trajectory for Bitcoin. He remarked, “Beginning today, the dollar will be under heavy pressure, USD will be printed, and inflation will begin to rise.” Bullish on gold, bitcoin, stocks, and real estate.” The short-term economic instability anticipated by this shift may be intimidating, but the long-term prospects for Bitcoin are excellent.
A concerned user pointed out that when inflation rises, most people will not invest in Bitcoin, gold, or other assets. Dr. Profit answered, “Do you believe the market requires regular people to move? It’s a long-term rise. The effects of this modification will be visible in 8-12 months from today.”
As traditional financial systems become increasingly unstable, Bitcoin’s usefulness as an inflation hedge grows. Furthermore, Bitcoin’s decentralized and deflationary characteristics make it an appealing store of value. Bitcoin also serves as a hedge against the devaluation of fiat currencies.
Doctor Profit went on to say, “Soon, the United States will understand it cannot beat inflation. They will manipulate the populace, just as they recently manipulated the inflation basket. They will make it appear that inflation has been overcome in order to justify additional money printing. Their purpose is clear: turn on the printers!”
Bitcoin Gains Momentum as US-Saudi Petrodollar Agreement Ends
Saudi Arabia Petro dollar : Bitcoin (BTC) poised to benefit from the termination of the US-Saudi petrodollar agreement. Furthermore, the financial world is bracing for a seismic upheaval following Saudi Arabia’s decision not to renew its long-standing security arrangement with the United States, which expires on June 9, 2024.
This significant decision enables Saudi Arabia to sell oil and other commodities in a variety of currencies. These include the Chinese RMB, Euros, Yen, and Yuan, rather than just US dollars. Additionally, the usage of digital currencies such as Bitcoin could be studied.
US-Saudi Petrodollar Deal Ends
The most recent development is a substantial change from the petrodollar system created in 1972, when the United States untethered its currency from gold. Furthermore, the decision is expected to exacerbate the global trend of turning away from the US dollar, with Bitcoin set to benefit considerably from this shift.
Saudi Arabia has announced its participation in Project mBridge, a cross-border trial involving China’s central bank digital currency (CBDC). The move demonstrates its determination to diversify its business ties. The Bank for International Settlements (BIS) has announced Saudi Arabia’s complete involvement in Project mBridge.
The project involves central banks from China, Hong Kong, Thailand, and the United Arab Emirates. According to Reuters, Josh Lipsky of the Atlantic Council stated that “the most advanced cross-border CBDC project just added a major G20 economy and the largest oil exporter in the world.”
The mBridge platform, which is already in the “minimum viable product” stage, promises to simplify cross-border transactions with CBDCs. Furthermore, the platform is compatible with the Ethereum Virtual Machine, the foundation of the Ether cryptocurrency network. This opens up new options for digital currency transactions.
How Will Bitcoin Benefit from This Development?
Doctor Profit, a well-known cryptocurrency expert, claimed in a post on X that the US-Saudi petrodollar arrangement has finished and will not be extended. This will force the US to produce a lot of fresh USD!” The anticipated rise in USD printing is expected to result in higher inflation.
As inflation rises, the value of fiat currencies such as the US dollar erodes. Furthermore, it would encourage investors to seek refuge in alternate assets. Bitcoin, with its fixed quantity and decentralized character, stands to benefit the most from this transformation.
Furthermore, the analyst anticipates a bullish trajectory for Bitcoin. He remarked, “Beginning today, the dollar will be under heavy pressure, USD will be printed, and inflation will begin to rise.” Bullish on gold, bitcoin, stocks, and real estate.” The short-term economic instability anticipated by this shift may be intimidating, but the long-term prospects for Bitcoin are excellent.
A concerned user pointed out that when inflation rises, most people will not invest in Bitcoin, gold, or other assets. Dr. Profit answered, “Do you believe the market requires regular people to move? It’s a long-term rise. The effects of this modification will be visible in 8-12 months from today.”
As traditional financial systems become increasingly unstable, Bitcoin’s usefulness as an inflation hedge grows. Furthermore, Bitcoin’s decentralized and deflationary characteristics make it an appealing store of value. Bitcoin also serves as a hedge against the devaluation of fiat currencies.
Doctor Profit went on to say, “Soon, the United States will understand it cannot beat inflation. They will manipulate the populace, just as they recently manipulated the inflation basket. They will make it appear that inflation has been overcome in order to justify additional money printing. Their purpose is clear: turn on the printers!”
Summary:
Saudi Arabia’s decision not to renew its security arrangement with the United States, set to expire on June 9, 2024, marks a significant shift away from the US-Saudi petrodollar agreement established in 1972. This move allows Saudi Arabia to sell oil and other commodities in various currencies including the Chinese RMB, Euros, Yen, and Yuan, rather than relying solely on the US dollar. The potential inclusion of digital currencies like Bitcoin is also under consideration.
Saudi Arabia’s involvement in Project mBridge—a cross-border trial using China’s central bank digital currency (CBDC)—highlights the country’s efforts to diversify its business relationships. The project, which includes central banks from China, Hong Kong, Thailand, and the UAE, aims to simplify cross-border transactions with CBDCs and is compatible with the Ethereum Virtual Machine.
Cryptocurrency expert Doctor Profit suggests the end of the petrodollar agreement will lead to increased USD printing and higher inflation, which could drive investors to alternative assets like Bitcoin. Bitcoin’s fixed supply and decentralized nature make it a strong candidate to benefit from this shift, serving as a hedge against inflation and fiat currency devaluation. Despite short-term economic instability, the long-term prospects for Bitcoin are considered favorable.