Council on Foreign RelationsWashington, D.C. MR. SULLIVAN: At least I had the bravery to give that speech at Brookings rather than at CFR. So — (laughter) — Mike, I want to say thank you for having me back at CFR. And to Susan and Kurt and Charlene and Steve, thank you for having me back…
BRICS nations like China are desperately trying to move off the dollar, which is a major tool of US control. The problem is, nobody trust the Yuan, the Ruble, or any of their other fiat currencies. They can't trust each other, so the US remains the global currency hegemon. But that is a privileged position it basically only got because everybody else was blown up after the world wars. The US's position in this area will continue to erode.
There is a fantastic overview of how the US uses the dollar to control other countries and extract trillions of dollars from them while keeping them in a cycle of debt. The Human Rights Foundation https://youtu.be/7qRWurFaUD0?list=PLe0djdakvnFb0T-oZAeF49A-EZChise4n&t=14009 and another one on how France abuses its currency influence in Africa to keep the colonial legacy alive https://www.youtube.com/watch?v=_-u1Pjce4Lg&pp=ygUxaG93IGZyYW5jZSBjb250cm9scyBlbnRpcmUgZWNvbm9taWVzIGZyYW5jb2RvbGxhcg%3D%3D
What will replace it? My bet is on Bitcoin. A few smaller nations (Ecuador, Argentina, El Salvador) have embraced it as a way to reduce the control the US has over their economies. The blowback from the world bank, IMF etc has been very telling. They do not like the idea of a country that doesn’t want to get stuck in a cycle of debt, restructuring, and subservience to the dollar. Throughout history, countries have had to choose between minting their own currency which many lack the political stability to do, or using the currency of another country as the expense of their own sovereignty. But now there is Bitcoin.
Bitcoin is a politically neutral currency that cannot be controlled by any nation state or even group of nation-states. It is immune to corruption and human error. It just works well to send money from A to B and nobody can cheat it. It's market cap is 850 billion dollars, that puts it in the top 25 countries by GDP. On par with Switzerland. Higher than sweden. Higher than Israel. Higher than vietnam.
Bitcoin's fiscal policy is clear and predictable. 21 million coins will be minted. No more, no less. And if you have a private key, you can spend your coins. Nobody else can spend them. It has kept that promise for 15 years. 365 days a year. 7 days a week. 24 hours a day. Without a single hour of downtime, bank holiday, or a single hack. And there's no reason to think it can't keep that promise another 15. The incentives and security mechanisms built into Bitcoin the past 15 are the same it will have the next 15.
Anybody can use Bitcoin with a cell phone and a halfway reliable internet connection. With Bitcoin lightning, you can send an international transaction in under a second for pennies in fees. No credit check required, no middlemen, no nonsense. It doesn't matter if your country doesn't have stable banking infrastructure or a government constantly devaluing your currency. And it does all of this with less than 1% of global energy usage, mostly from renewables, since miners tend to chase the cheapest electricity which tends to be made from renewables at off-peak hours.
BRICS nations like China are desperately trying to move off the dollar, which is a major tool of US control. The problem is, nobody trust the Yuan, the Ruble, or any of their other fiat currencies. They can't trust each other, so the US remains the global currency hegemon. But that is a privileged position it basically only got because everybody else was blown up after the world wars. The US's position in this area will continue to erode.
There is a fantastic overview of how the US uses the dollar to control other countries and extract trillions of dollars from them while keeping them in a cycle of debt. The Human Rights Foundation https://youtu.be/7qRWurFaUD0?list=PLe0djdakvnFb0T-oZAeF49A-EZChise4n&t=14009 and another one on how France abuses its currency influence in Africa to keep the colonial legacy alive https://www.youtube.com/watch?v=_-u1Pjce4Lg&pp=ygUxaG93IGZyYW5jZSBjb250cm9scyBlbnRpcmUgZWNvbm9taWVzIGZyYW5jb2RvbGxhcg%3D%3D
What will replace it? My bet is on Bitcoin. A few smaller nations (Ecuador, Argentina, El Salvador) have embraced it as a way to reduce the control the US has over their economies. The blowback from the world bank, IMF etc has been very telling. They do not like the idea of a country that doesn’t want to get stuck in a cycle of debt, restructuring, and subservience to the dollar. Throughout history, countries have had to choose between minting their own currency which many lack the political stability to do, or using the currency of another country as the expense of their own sovereignty. But now there is Bitcoin.
Bitcoin is a politically neutral currency that cannot be controlled by any nation state or even group of nation-states. It is immune to corruption and human error. It just works well to send money from A to B and nobody can cheat it. It's market cap is 850 billion dollars, that puts it in the top 25 countries by GDP. On par with Switzerland. Higher than sweden. Higher than Israel. Higher than vietnam.
Bitcoin's fiscal policy is clear and predictable. 21 million coins will be minted. No more, no less. And if you have a private key, you can spend your coins. Nobody else can spend them. It has kept that promise for 15 years. 365 days a year. 7 days a week. 24 hours a day. Without a single hour of downtime, bank holiday, or a single hack. And there's no reason to think it can't keep that promise another 15. The incentives and security mechanisms built into Bitcoin the past 15 are the same it will have the next 15.
Anybody can use Bitcoin with a cell phone and a halfway reliable internet connection. With Bitcoin lightning, you can send an international transaction in under a second for pennies in fees. No credit check required, no middlemen, no nonsense. It doesn't matter if your country doesn't have stable banking infrastructure or a government constantly devaluing your currency. And it does all of this with less than 1% of global energy usage, mostly from renewables, since miners tend to chase the cheapest electricity which tends to be made from renewables at off-peak hours.