Notably, it could lead to an erosion of confidence in the U.S. dollar as people seek an alternative to the once-dominant currency. Keiser explained that such a development could lead to a massive decline in the demand for U.S. dollar reserves.
The Bitcoin maximalist said this disadvantage will impact the United States due to its high debt burden. He says, “ Fiat (BIT:STLAM) money imperialists die under a global Bitcoin standard.”
Keiser criticized the current monetary system, where the U.S. dollar is backed by trust and government policy rather than tangible assets like gold. Keiser’s reference to “debt imperialism” implies the U.S. could issue debt in dollars as a tool for economic control and global influence on other countries.
In the global space, Keiser considers Russia as being well positioned for a shift to Bitcoin standard. He believes Russia has a lesser national debt than the United States and other Western countries. This gives it an advantage, as it is less vulnerable to financial shocks.
Other factors that lean in Russia’s favor include the country’s abundant energy, which could support Bitcoin mining, which has become increasingly difficult. Additionally, Russia, a commodity-producing nation, has assets with intrinsic value, which aligns well with a Bitcoin-backed system.
This article was originally published on U.Today
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