How long will Uncle Sam allow US Corps to ditch $ for BTC?
Its one thing for foreign Governments to pivot away from the US$ to other non-$ based trades, but the gall of US enterprises shifting to BTC away from the $. Makes one question how long will Uncle Sam tolerate DeDollarization on his home turf?
What am I talking about? There seems to be a concerted effort at this point with corporations new and old pivoting to take positions in BTC as the $ is digitized (Aka modern term for Fed Printing) to the moon. Recall just last year the US Fed added 12% of all $ in circulation; yep one year grew the entire supply of $ 12%... let that sink in a minute then move on.
For years China and Russia have been seeking ways to avoid trading in the US $, China has spent countless money building their own SWIFT System killer (True SWIFT is Belgian based but US dictates how it operates and what countries get banned...read I.E. IRAN which was kicked out in '13). China's system is called China International Payments System (aka CIPS). Recall that Russia moved $101B outside of the SWIFT system buy purchasing Euro's, Yen. And late in '18 Russia bought 1/4 of the worlds supply of Yuan. Iran has been trading Oil for goods and food - again these are all actions outside of the US $.
US Corporations are waking up to the fact that Inflation and/or Hyperinflation will wake up from its sleepy slumber introduced by years of care free spending and taking a portion of their rainy day funds and taking a position in BTC. Everyone knows and points to Michael Saylor of Microstrategies as the starter of this movement; perhaps there was another but at this point we can go with that. You have one of America's oldest Corporations Mass Mutual taking a position, you have plenty of others that don't need to be rehashed here. Current reports show that Institutions Now Own 3% Of The Circulating Supply of BTC.
At What point is Uncle Same going to be pissed and not allow it any longer? What is the scale tipping point when enough is enough to move from Idle to action? Are US corporations better off not announcing their positions? That has ramifications to the system as a whole too. So, is it better for Corporations to quickly take a stake and announce it? AKA The Wall of Money we have all been anticipating might hit a speed bump or a hastily erected wall to prevent such pivoting.
Why would Uncle Sam take this stance? Power, the thought of losing or even a repositioning into another or multiple reserve options would mean loss of power and influence. So what better place to demonstrate power is at home. The good ole USA.
What would this course of action look like? It could be a hastily produced and tested US CBDC or just stiff fines to curb the $ movement into BTC. IT might be too early for an outsider to know what Uncle Sam has up his sleeve.
Summary - Technical De-dollarization has been taking place since Nixon shut the Gold window and took the US off the Gold standard. The global actions have been gathering steam and those dollars have to come home at some point and when their is too many sloshing around at one time Inflation is never too far off. Might be worth paying attention and keeping some of your side hustle money out of the game for a bit.
Disclaimer - I don't work for Uncle Sam and this is not construed as financial advice nor has any offer been made.
