Why Vladimir Putin Says The US Dollar Is Dying And Bitcoin Is Growing.

Russian President Vladimir Putin issued a dire warning to the United States. He explained that the policies of the Biden administration are effectively undermining the strength of the US dollar.

According to Putin, these actions are leading to a decline in the US dollar's status as the world's reserve currency, a situation that the White House described as “major strategic mistakes”.

Biden is killing the US dollar.

Vladimir Putin discussed a range of topics, from Russia's military action in Ukraine to the field of artificial intelligence. This discussion comes in the wake of the US declaring a “crypto emergency”. It also emphasizes the high tension and complex interaction between geopolitics and global finance.

The Russian leader pointed out that the use of the US dollar as a weapon in foreign policy has reduced its international status. It also led to a decline in US dollar reserves. The shift is part of a broader trend in which countries are moving away from the US dollar in response to sanctions and political activity.

“The dollar is the cornerstone of American power. It is the main weapon used by the United States to maintain its power around the world. As soon as the political leadership decided to use the dollar as a tool for political struggle, this American power was harmed,” Putin said.

In particular, the sanctions imposed following Russia's invasion of Ukraine have significantly changed the landscape of Russia's foreign trade. The US dollar and euro have fallen from 80 percent to 13 percent of Russia's international trade. In contrast, transactions in Chinese yuan and Russian ruble increased.

This strategic pivot away from the U.S. dollar is highlighted by the fact that U.S. debt is now over $34 trillion. Federal Reserve Chairman Jerome Powell called this level of debt “unsustainable” and echoed concerns about the viability of the US dollar as an international reserve currency.

“In the long term, the United States is on an unsustainable fiscal path … It just means that the debt is growing faster than the economy … Effectively, we are borrowing from future generations,” he said.

Bitcoin emerges as a secure heaven

Amid these economic uncertainties, Bitcoin has emerged as a beacon for investors seeking stability. Following a significant price drop in 2022, the price of Bitcoin has rebounded. Thus fueling debates about whether it could be a safe asset and a viable alternative to traditional currencies like the US dollar.

Investors and tech enthusiasts, including former Arch Invest CEO Kathy Wood, see Bitcoin's resurgence as a tipping point for the dominance of the US dollar. The ever-increasing contrast between Bitcoin and the US dollar is a critical shift that could redefine the foundations of global finance.

“During the regional bank crisis in March [2023]Bitcoin rose 40% as the regional bank index advanced. Here again, the regional bank index is working and after a slight correction after the entry of 11 ETFs, we are seeing that Bitcoin is holding a bid again. So the idea that this is about flying for quality or flying for safety is asserting itself here,” Wood explained.

Read more: Bitcoin price prediction for 2024/2025/2030

Bitcoin's effectiveness against the US dollar has become a subject of analysis. Some indicators suggest an inverse relationship between the price of Bitcoin and the performance of the US dollar against a basket of major currencies. This relationship highlights Bitcoin's potential role in diversifying investment portfolios and reducing currency-related risks.