Two of the biggest countries in the world beginning to settle trade in bitcoin?
That is huge and signals a future trend for greater bitcoin nation state adoption.
Normally countries settle trade in US dollars. You need to have dollars to buy oil from Saudi Arabia and the Middle East.
But as the dollar seems to be losing its global reserve status many countries are seeking alternatives. Bitcoin is the natural solution.
As demand for the petrodollar becomes less and less the US dollar will continue to decline and lose value.
The crazy US tariff drama doesn't help and will only accelerate the decline.
WHAT ABOUT GOLD
Gold is great as a neutral reserve asset, but is cumbersome to store, secure and ship large quantities of a heavy physical object
over long distances. That is why gold hasn't been used to settle trade in over a hundred years. That is where Bitcoin comes in.
Bitcoin has the properties of gold as a neutral asset, with many enhancements of a digital asset for the modern digital age.
Personally I don't like gold because the mining of it is greatly destructive to the environment,
a hundred times worse than bitcoin mining as I explained in my other thread.
PROBLEMS WITH THE US DOLLAR
- The dollar is controlled by a single central government so it is not neutral.
- The US govt can freeze or seize your dollar assets and holdings at any time, as history has shown.
- The US govt can debase the dollar by extreme money printing as history has shown.
BITCOIN THE OBVIOUS SOUND MONEY SOLUTION
That is why the BRICS countries formed a trading bloc as an alternative to the petrodollar.
But what can replace the US dollar for international trade? The Chinese yuan? Russian ruble? Indian rupee?
Euro or Yen? Being fiat currencies they all have the same problems as the US dollar.
Meaning they are not neutral, are centrally controlled, easily debased, can be frozen or seized in a dispute, etc.
Bitcoin is the natural solution to all these problems. If this trend catches on, and I believe it will
that is going to be huge for bitcoin adoption. It can be used to settle trade in any kind of products not just energy.
Bitcoin may or may not work so well as a payment method at the consumer level but for settling trade between countries it
should be the clear alternative to the US dollar. Bitcoin already works great as a store of value so this is just icing on the cake.
VanEck Confirms China and Russia Settling Energy Trades in Bitcoin A Major Step in De-DollarizationApril 13, 2025
Bitcoin has become more than just a speculative asset; it is now evolving into a functional monetary tool,
especially in economies seeking to bypass the U.S. dollar and reduce exposure to U.S.-led financial systems.
Head of Digital Assets Research Matthew Sigel said in VanEcks report released on April 8,
China and Russia have reportedly begun settling some energy transactions in Bitcoin and other digital assets,
a significant step that further drives the narrative of de-dollarization...continued 