Saudi Arabia Threatens To Sell Oil Using Currencies Other Than USD, This Can Be Good For Bitcoin
Saudi Arabia Threatens To Sell Oil Using Currencies Other Than The Dollar, This Can Be Good For Bitcoin
The latest price spikes in Bitcoin were very for the industry. They basically reanimated the sector and created a more optimistic future for BTC. Now, a governmental decision in Saudi Arabia may also affect Bitcoin in a positive manner.
Now, the government of Saudi Arabia has recently threatened to use currencies other the USD in order to sell oil. This will happen in case the American government passes the NOPEC bill.
This bill will expose OPEC countries to be sued by the antitrust laws of the United States. According to sources from the mainstream media, Saudi officials were discussing the initiative and they would dump the Petrodollar deal in case the measure is approved. However, it is obviously improbable that the energy sector will decide to drop the dollar even if the NOPEC bill passes.
In case this happens, though, more countries could also drop the dollar and this could create a scenario in which the USD would lose its place as the most powerful currency in the world. This would, in fact, help to destabilize the United States as the most important global economy.
Dollar Diplomacy Has Seen Better Days
Now that the Saudis are thinking seriously about abandoning the USD, the U. S. should be concerned. Russia and China are already very eager to drop the USD as well and tensions between Washington and the eastern parts of the world are growing.
China has, for instance, planned to start creating gold-backed oil futures using the national fiat currency, the Yuan. The geopolitical war is getting very tense as China seems to be copying what Richard Nixon did in the U. S.
The idea is to offer tech, maybe weapons, and advantages for companies willing to ditch the dollar and start accepting the yuan. China has already been consolidating a strong presence in Africa, so it would not be a big surprise if the country was successful in this.
The Bitcoin Market Could Benefit From The Fall Of The Dollar
Several actors may benefit from the USD losing its status and its value. For instance, China and Russia, but it would be foolish to believe that Bitcoin would not be affected by such an important change in the market. In fact, Bitcoin has a lot to gain from a crisis in the USD.
If investors turned away from the USD, they would certainly invest in some other assets and Bitcoin will certainly be one of them. This could raise the value of BTC tenfold and finally start the revolution that is being awaited for so long.
There are, however, several factors to be seen before one could affirm surely that BTC will rise with the fall of the USD, as China, which is very anti-Bitcoin, will certainly try to push its own currency as the new USD.