How Bitcoin surpasses Yuan and the dollar
The Fiat system faces a global crisis, and the US currency is in the center of the storm, according to dollar shake theory. While the world wealth is eroded, Bitcoin emerges as an alternative for citizens seeking financial sovereignty.
Brent Johnson, investment manager with 25 years of experience and creator of the dollar milkshake theory, explained that The global financial system acts as a “shake” Where the dollar, thanks to its reserve currency status, absorbs world liquidity.
“Despite the economic problems of the United States, the rest of the world has even more,” said Johnson. This strengthens the dollar against currencies such as Yuan and the euro, benefiting US assets, although their internal purchasing power is erased. “It doesn’t matter who prints money, what matters is who captures it,” he adds.
Johnson predicts that this phenomenon could trigger a global sovereign debt crisis. “The dollar could reach its historical maximum, causing so much chaos that a ‘reset’ of the system will be needed,” he said, evoking precedents as the 1985 Plaza Agreement, when the main powers intervened to depreciate the dollar.
In itself, the Plaza Agreement was a coordinated intervention of the main economic powers to weaken the US dollar and address the global commercial imbalances of the time.
The agreement succeeded in its immediate objective, that is, the dollar depreciated significantly in the following years. However, it did not completely solve the long -term US commercial deficit.
Subsequently, in 1987, the Louvre agreement was signed, which sought to stabilize the exchange rates on the new levels, since it was feared that the dollar would have fallen too fast.
China takes refuge in gold
Given this uncertainty, China accumulates more than 2,200 tons of gold, valued by almost 200,000 million, to reduce its dependence on the dollar. However, gold has limitations. That is because it is controlled by governments, it is difficult to transport and it is not practical for daily transactions.
While The Yuan weakens against the dollarChinese companies face more expensive debts, and citizens, trapped by capital controls, seek refuge in dollars, not for confidence in the US, but to escape the devaluation.
As some means point out, events control gold prices. They rise when world economic growth slows down and maintain inversely related to the fluctuation of the dollar index during recessions. Similarly, prices collapse when the dollar is strengthened and investors mass the bonds in times of bonanza. Currently, while exceeding any resistance, the feeling that gold prices are no longer governed by economic factors, but by the whims of Chinese buyers and investors.
According to the World Gold Council, World Central Banks are taking refuge in gold and could continue promoting the boom of the bullion In the coming years, due to the growing geopolitical risks, the intensification of commercial tensions between the United States and China and the growing demand for institutional and retail investors.
Bitcoin is protection against chaos
While the creator of the dollar shake theory warns that a very strong dollar could collapse the global financial system, he is not entirely convinced that Bitcoin offers an alternative for citizens.
Actually, Johnson declared himself “indifferent” about Bitcoin, although he does not rule out that his price reaches one million dollars, qualifying it as “the greatest speculative asset in history.” However, he showed a strong skepticism about his adoption by the States. “The currency of a country is the biggest tool against its people, and I don’t think they will give up its greatest tool,” he said emphatically.
However, other analysts, such as the Eric Hirsch asset manager, They say that Bitcoin is functioning as sure active against uncertainty Global Economic, as he points out during a conversation with Anthony Pompliano in his podcast.
Hirsch points out that Bitcoin and gold buyers are different groups, but both seek assets that offer security in times of instability. Bitcoin investors tend to see it as a more independent asset of the traditional economic system, he points out.
On this current scenario, Poly Bitcoin and Gold benefit from the uncertainty and devaluation of FÍAT coinsacting as safe shelters.
Both Polina and Anthony consider that Bitcoin could be consolidated as a safe refuge in the face of crises, surpassing gold. In addition, they see in current policies, such as tariffs driven by Donald Trump, a catalyst to redefine the global financial system, although key challenges persist as the uncertainty that shakes the world.
On the other hand, a panel in which Bitcoiners participated such as Natalie Brunell, conductor of the Coin Story podcast; Thomas Pacchia del Bar for Bitcoiners Pub Key and Marty Bent, co -founder of the TFTC cryptocurrency specialized platform (Tales from the Crypt), they believe that Bitcoin has the strengths to become a global reserve currency, But the road will be gradual.
Brunell advocated a neutral asset that does not depend on governments, citing Bitcoin as the best candidate due to his predictable decentralization and monetary policy. “The central banks are buying gold, but I hope that one day they buy Bitcoin,” he said, although he recognized the challenges of public debt and the fixed expenses of the US, that complicate any transition.
While, Bent and Pacchia emphasized Bitcoin’s practical utility. Its ability to transfer value globally with low rates positions it as a viable gold alternative, which is “clumsy” for transactions. Even if Bitcoin does not become a global currency, Its success as a value reserve is undeniable. “If the Bitcoin value rises and allows people to preserve their wealth, it is already a success,” said Bent, although he added that his potential as transactional money – as in its use to pay bills – would take it further.
