Bitcoin

The US economy is sinking towards recession as GDP came in at only 1.1% for Q1. Bitcoin on the other hand is continuing its rise.
Economic factors
Probably the most important factor for economic well being is oil. Oil drives economies, and strong demand for it signals a healthy economy that is using oil to fuel its industrial base.
However, in these current times, in spite of OPEC countries reducing their output, the price of oil is continuing to decrease as demand falters due to falling economic growth.
In the US, GDP growth for Q1 dwindled to 1.1%. This was an unexpectedly sharp fall given that the projection had been for 2%. In addition, the fall was also dramatic given that GDP had been at 2.6% for Q4 of 2022.
De-Dollarisation
Another looming problem for the dollar is that de-dollarisation is happening. Other countries around the world are starting to move away from the dollar, probably due to its recent weaponisation by the US government, by imposing sanctions against any other country it does not agree with.
Russia is using yuan for trade, Argentina will pay for Chinese imports in yuan, India is settling some trades in rupees, Brazil and China are deciding whether to not use the dollar in trades between them, and Saudi Arabia is considering accepting the yuan for oil exports to China.
However, de-dollarisation will likely be a slow process, given that dollar exchange reserves are nearly twice those of the euro, yen, pound, and yuan combined, and this is the same as it was a decade ago.
The dollar accounts for 58% of all central bank foreign exchange reserves and this will probably not change any time soon. Nevertheless, a wind of change has begun to blow, and the dollar hegemony is on the wane.
Dollar still in control
Notwithstanding, the dollar has been described as the least dirty shirt in the laundry. It has its issues and detractors, but it is still the world&rsquo;s reserve currency, and all the other fiat currencies are much weaker.
The Brics nations of Brazil, Russia, India, China, and South Africa, are said to be developing a new reserve currency that will be backed by real substance, such as commodities.
The evil of CBDCs
Be that as it may, fiat currencies all go to zero over time and this has been proved throughout history. The only last throw of the dice for those wishing to maintain complete control, is the imposition of central bank digital currencies (CBDCs).
CBDCs would enable central banks to exert the kind of control that up to now could only be read about in science fiction books. CBDCs would give the power to micro manage an individual's account, including setting time limits on spending, deciding what can and can&rsquo;t be bought, and even direct sanctions should the individual do something that was thought to be against the interests of the State.
Be your own bank with Bitcoin
Among all this morass of fiat currency misery there is still one asset that is outside of the grip of governments and central banks, and that is Bitcoin. Bitcoin is completely decentralised, cannot be taken away, and enables an individual to be their own bank.
Banks are antiquated behemoths of a bygone age. They do not serve depositors given that they make the decision of who we can or can&rsquo;t transact with, they provide no return when inflation is taken into account, and if enough depositors demand their money at one time, the bank will fail given that it holds almost no deposits due to zero fractional reserve.
Bitcoin is cyclical, so history tells us that it does go up and down in price, sometimes quite wildly, but it is a nascent asset class and therefore it will take time for its volatility to subside.
The main thing is that it is the people&rsquo;s money, and it reduces the reliance people need to have on governments and the banks. As the evil of CBDCs approaches, it would be incumbent on all to do their best to research Bitcoin with a view to getting out of a crumbling and dangerous fiat monetary system.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

Bitcoin is the go-to currency as dollar slackens its grip

Crypto Daily™

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