BRICS Nations Unite: Bitcoin Central to Challenging US Dollar Dominance in ‘Fair World Order

• Russian President Vladimir Putin disregarded the US-led rules-based world order and advocated for a fair world order spearheaded by the BRICS alliance.
• The notable difference between the United States-led G7 coalition and the Russian-led BRICS movement has created a favorable environment for the nature of Bitcoin as a global reserve currency and digital asset.

The adoption of the flagship crypto asset, Bitcoin (BTC), as the global reserve currency continues to gradually challenge and shake legacy nuclear-powerful countries like the United States and Russia. The success demonstrated by El Salvador adopting Bitcoin as the legal tender has significantly influenced most investors to channel their savings to the mother coins and alternative digital assets.

Moreover, Bitcoin price performance has outperformed all the precious metals and stock market indexes in the past five years, and historical data analysis coupled with fundamentals at hand shows the trend will continue in the coming decades. 

Russia Promises to Oust US Dollar Dominance

The Russian head of state, Vladimir Putin, spoke last week regarding the 2024 BRICS alliance summit, which is scheduled to take place in the city of Kaza. Under Russia’s chairmanship, Putin indicated that the summit will focus on ensuring the world is a fair place not ruled by Western civilization’s political interest.

Notably, the BRICS alliance has been advocating for the member states to use their respective currencies to empower their forex market and enhance de-dollarization. The BRICS alliance has been pushing to have a common currency that unites member states, but the logistics have remained a challenge due to the entrenched use of the US dollar.

As for the ‘rules-based world order,’ there are no such rules; in reality, they change every day depending on the current political agenda and the transitory interests of those [who are constantly]talking about it. The 2024 BRICS summit will demonstrate that there are enough forces in this world, powerful countries who want to live not in accordance with those unwritten rules, but rather in accordance with the rules enshrined in fundamental, cornerstone documents, which include the United Nations Charter, and those who are guided by their interests and those of their partners, who do not impose anything on anyone, and do not create any military blocs, while fostering the conditions for effective joint development,

The ongoing wars in Ukraine and Israel have significantly complicated global geopolitical differences, forcing economists to review their short-term and long-term agendas. Nonetheless, it is evident that more people do not support the killing of innocent lives to propel the agenda of certain individuals in power.

Bitcoin Market Outlook and Price Action

Bitcoin price has experienced significant resistance around $44.5k in the past three weeks. For the first time since mid-October, Bitcoin price has closed the weekly bar in a bearish outlook, thus signaling possible correction towards the end-of-year. However, the $800 billion valued digital asset has continued to attract institutional investors capital as shown by weekly cash inflow reports provided by CoinShares.