Bitcoin can break the monopoly of oil dollars?
Bitcoin can subvert the existing economic order, promoting world peace, the revitalization of the economy at the same time? To answer this question, we must start from the phenomenon of crude oil and the existing “petro dollar monopoly”.
A research report pointed out: “capitalism is an economic system; while war is a political act.” The report said that the oil dollar monopoly phenomenon in full compliance with the Fed’s interest, so the United States at all, at the expense of the cost of peaceful coexistence countries (including the United States, Iran, China etc.), just to ensure its position.
What is the oil dollar monopoly?
“Oil dollar monopoly” refers to the bank, the cartel (translator’s note: This refers to the Federal Reserve, the Federal Reserve jointly held by the Bank of America alliance does not actually belong to government agencies) in order to ensure its economic power, the dollar as the field for money.
In 1971, after the collapse of the Bretton Woods “agreement”, in order to regain their monopoly of the dollar, the United States and Saudi Arabia have reached an agreement. Saudi oil output can only be traded in dollars, net for the development of national economy and other domestic spending after the surplus funds to buy Treasury bonds. In return, the United States to provide weapons and military protection.
Most American politicians of this Agreement are not optimistic, because this relationship is often contrary to the interests of the United States, and even cause unnecessary conflict.
As oil dollars and “Bretton Woods Agreement” agreement will only lead to the economic situation of tension, especially for developing countries, caused great harm to China. With the domestic exports and oil imports pattern change, affecting us debt devaluation of the China has become more and more small.
Chinese plan by leaving the dollar monopoly system or reduce production cost way to alleviate the economic pressure.
The risk of recent events to bring $
We review here in recent years, some of the more interesting events. Although they seem unrelated, once together, will be able to see these events are of great significance for the dollar and bitcoin.
In 2012, Iran agreed to crude oil trading in Renminbi (“RMB Chinese oil”), started from the petro dollar system. A number of oil exporting countries immediately follow.
Since the beginning of 2013, Chinese bitcoin transactions has been active, some domestic policy will often drive bitcoin prices, for example, bitcoin is defined as “right”, the central bank and the digital currency etc..
In 2015, Chinese plans to completely break the monopoly of the dollar. According to the Russian satellite network reported:”…… Chinese began to sell U.S. bonds, increased gold reserves, and open a bank for RMB in many places……”
In 2016, the International Monetary Fund (IMF) approved the yuan in the SDR basket.
If you lose the Chinese trading partner, the dollar is in jeopardy. The behavior of IMF is to break the China control of the yuan, bring a new trade money for other countries.
The devaluation of the renminbi may be caused by the people to Chinese bitcoin this incentive, factors also lead to bitcoin prices. But this is not the main factor to promote the development of bitcoin. If Chinese capital controls is the cause of soaring prices, then IMF should take the easing of the renminbi, but the fact that it did not.
If bitcoin can be used as a tool of international oil trade, so the price hike is to cater to the demand of crude oil daily circulation, that is to say, bitcoin prices in order to get the value of crude oil and the oil market bitcoin “value ($4 billion 600 million / barrel: 94 ml of *2015 oil output the average crude oil price of $49.49) equate. This is a reasonable explanation of bitcoin prices?
The Fed will face the risk, and the American economy will not
At first glance, the concept of risk and “oil bitcoin” seems to have harm to the U.S. economy and no benefit. Especially the anonymity of bitcoin, any country can in the premise of international relations, the use of the characteristics of secretly replace the dollar monopoly. However, it is worth noting that this feature of bitcoin can RMB investment to help the United States or any other country and Chinese relationship is not close.
The most important point is that bitcoin holders is unknown. Whether it is Chinese or any other country, if they attempt to create “oil bitcoin” phenomenon, should consider the following questions.
Once the dollar return to the origin of the global pattern of reset, each national crude oil purchasing power will decline, productivity will decline, resulting in a global recession.
In this recession, the price of bitcoin (like gold) will certainly rise. With the advent of the “oil bitcoin” concept, each country will tend to coherence in economic activity. Bitcoin anonymity helps to eliminate “capitalism and war” phenomenon, thus promoting world peace, but also help the global economic recovery.
In short, the situation will lead to the Fed’s position in jeopardy, and the American economy will not be affected. Because of its independence, the concept of “oil bitcoin” more reasonable – like just block chain technology, can help the United States and other countries in the economic crisis. “International Federation of petroleum bitcoin can prevent dangerous and unnecessary conflicts.