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Scenario of the Decline of the Dollar and the Rise of Bitcoin as the Primary Global Currency

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Scenario of the Decline of the Dollar and the Rise of Bitcoin as the Primary Global Currency

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October 2024: Escalation of Geopolitical Tensions

  • Context: Geopolitical tensions between BRICS countries (Brazil, Russia, India, China, South Africa) and Western nations intensify due to disagreements on trade and monetary policies. BRICS announces its intention to reduce reliance on the U.S. dollar for international trade.
  • Initial Impact: BRICS begins establishing bilateral agreements using their own currencies, weakening global demand for the dollar.
  • Impact on Bitcoin: BRICS starts accumulating Bitcoin reserves, anticipating a global monetary crisis. Bitcoin's price rises to $65,000, with a market cap of $1.3 trillion.
  • Impact on the Dollar: Uncertainty leads to a slight decrease in dollar demand, but its market cap remains stable around $21 trillion.

January 2025: Introduction of a BRICS Digital Currency

  • Context: BRICS launches a common digital currency, the "BRICS Coin," for intra-bloc trade, aiming to free themselves from the dollar. This currency is backed by the natural resource reserves of member countries.
  • Impact: Major emerging economies quickly adopt BRICS Coin for trade, further reducing the use of the dollar. Financial markets react with a decline in the dollar's value.
  • Impact on Bitcoin: Bitcoin sees increased use in large-scale transactions, with its price rising to $80,000 and a market cap of $1.5 trillion.
  • Impact on the Dollar: The demand for the dollar slightly decreases in BRICS trade, reducing its market cap to $20.5 trillion.

March 2025: Global Economic Crisis and Dollar Devaluation

  • Context: A global economic crisis erupts due to monetary uncertainty and trade tensions. The dollar suffers a massive devaluation as investors lose confidence and seek alternative safe havens.
  • Impact: Central banks and global investors increase their reserves in gold, Bitcoin, and other digital assets to protect against dollar inflation.
  • Impact on Bitcoin: Bitcoin's price skyrockets to $100,000, with a market cap of $2 trillion as investors seek alternatives to the dollar.
  • Impact on the Dollar: The economic crisis leads to a dollar devaluation, with its market cap dropping to $19 trillion as investor confidence is shaken.

August 2025: Growing Adoption of Bitcoin as a Store of Value

  • Context: Amid the crisis and loss of confidence in the dollar, several countries begin adopting Bitcoin as a store of value and alternative currency, especially for cross-border transactions.
  • Impact: Bitcoin's price soars as multinational corporations start demanding payments in Bitcoin to avoid dollar risks. Governments develop favorable regulations to encourage Bitcoin use.
  • Impact on Bitcoin: Bitcoin reaches $150,000, with a market cap of $3 trillion due to increased demand for trade transactions.
  • Impact on the Dollar: The dollar's market cap drops to $17.5 trillion as businesses and investors diversify their holdings.

February 2026: Adoption of Smart Contracts on the Bitcoin Network for International Trade

  • Context: Smart contracts on the Bitcoin network become the standard for international trade agreements due to their transparency, automation, and trustworthiness. Companies use these contracts to secure payments, deliveries, and service agreements.
  • Impact: Smart contracts replace traditional letters of credit, reducing delays and costs in international transactions. Complex agreements are automatically executed, enhancing global trade efficiency.
  • Impact on Bitcoin: With the growing adoption of smart contracts, Bitcoin's price reaches $200,000, with a market cap of $4 trillion.
  • Impact on the Dollar: The dollar continues to lose importance in trade, with its market cap falling to $15 trillion.

June 2026: Global Agreement on Bitcoin for International Trade

  • Context: An international summit is held to create a regulatory framework and secure the use of Bitcoin in global trade. Major powers, including BRICS and Western countries, reach an agreement to adopt Bitcoin as the primary international exchange currency.
  • Impact: Bitcoin is officially recognized as the reference currency for international transactions, energy contracts, and commodities. Central banks begin issuing digital versions of their currencies pegged to Bitcoin, facilitating the integration of global financial systems.
  • Impact on Bitcoin: Bitcoin becomes the dominant currency for international trade, its price rises to $250,000, with a market cap of $5 trillion.
  • Impact on the Dollar: The dollar loses its status as the world’s reference currency, with its market cap dropping to $12 trillion.

December 2026: Collapse of the Dollar as the World’s Reserve Currency

  • Context: The dollar loses its status as the world’s reserve currency, replaced by a basket of digital assets dominated by Bitcoin and BRICS digital currencies. The U.S. undergoes a major recession due to capital flight and loss of confidence in its economy.
  • Impact: Bitcoin becomes the primary exchange and reserve currency, with smart contracts playing a central role in automating and securing international transactions. Trade flows are now largely decentralized, increasing efficiency and reducing monetary conflicts.
  • Impact on Bitcoin: Bitcoin reaches $500,000, with a market cap of $10 trillion, solidifying its position as the world’s reserve currency.
  • Impact on the Dollar: The dollar’s market cap reduces to $10 trillion, with a significant loss of confidence and demand in international markets.
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