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How BTC Profites From Ending US-Saudi Arabia Petrodollar Deal
Bitcoin (BTC) will benefit from the end of the US-Saudi Arabia petrodollar deal. Furthermore, the financial world is ready for an epochal change Saudi ArabiaThe decision not to renew its long-standing security agreement with the United States, which expired on June 9, 2024.
This landmark move allows Saudi Arabia to sell oil and other goods in various currencies. These include Chinese RMB, euro, yen and yuan, rather than exclusively US dollars. Furthermore, the use of digital currencies such as Bitcoin could also be explored.
End of US-Saudi Arabia petrodollar deal
The latest development marks a significant departure from the petrodollar system established in 1972, when the United States decoupled its currency from gold. Furthermore, the decision is expected to accelerate the global trend away from the US dollar, with Bitcoin benefiting significantly from this shift.
Saudi Arabia has announced its participation in the China-dominated central bank’s cross-border digital currency project, Project mBridge. The move underlines its commitment to diversifying its economic dependencies. The Bank for International Settlements (BIS) has announced Saudi Arabia’s full participation in the mBridge project.
The project includes central banks from China, Hong Kong, Thailand and the United Arab Emirates. According to Reuters, Josh Lipsky of the Atlantic Council noted: “The most advanced cross-border CBDC project just added a major G20 economy and the world’s largest oil exporter.”
The mBridge platform, now in the “minimum viable product” stage, aims to facilitate cross-border transactions using CBDC. Furthermore, the platform boasts compatibility with Ethereum Virtual Machine, the backbone of the Ether cryptocurrency network. This opens up new avenues for digital currency transactions.
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How will Bitcoin benefit from this development?
In a post on This will force the US to print tons of new dollars!” The expected increase in USD printing is expected to lead to an increase in inflation.
As inflation rises, the value of fiat currencies such as the US dollar tends to erode. Furthermore, it would push investors to seek refuge in alternative assets. Bitcoin, with its fixed supply and decentralized nature, is positioned as the primary beneficiary of this shift.
Furthermore, the analyst predicts a bullish trend for Bitcoin. He stated: “From this day, the dollar will be under great pressure, dollars will be printed, inflation will begin to rise. Bullish for Gold, Bitcoin, Stocks and Real Estate.” The short-term economic turmoil expected from this transition may be daunting, but the long-term outlook for Bitcoin is promising.
A concerned user pointed out that ordinary people will not invest in Bitcoin, gold or other assets when inflation rises. Dr. Profit responded: “Do you think the market needs ordinary people to move? It’s more of a long-term increase. The effects of this change will be seen 8-12 months from today.”
Bitcoin’s role as a hedge against inflation becomes more pronounced as traditional financial systems face instability. Additionally, Bitcoin’s decentralized and deflationary characteristics make it an attractive store of value. Bitcoin also offers a hedge against the devaluation of fiat currencies.
Dr. Profit further noted, “The United States will soon realize that it cannot defeat inflation. They will manipulate the masses as they did recently when they manipulated the inflation basket. They will make it seem like inflation has been defeated, to justify printing new money. Their goal is very clear: TURN ON THE PRINTERS!!”
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