BR #11: Dedollarization: Confirmed

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Time flies.

It is a cliche, but for most of us it really does.

I feel like it flies even faster in the age of social media.

We are so flooded with information 24/7 that a few months feel like years.

It feels like years ago when the war in Ukraine started.

Shortly afterwards, the USA froze $600B assets of the Russian Central Bank.

At that point, I thought: the USA just killed its own currency.

Why would other countries hold USD knowing it can be frozen at an instant?

I was waiting for other countries to take action.

It only made sense that they sell USD to accumulate bitcoin and gold - the only assets no one can freeze.

Yet, that did not happen.

What is worse, in the next 8 months bitcoin and gold dropped 55% and 17% respectively.

Was I totally wrong?

I don't think so.

Nothing goes up or down in a straight line — we zig and we zag.

And it takes time for the large geopolitical tectonic plates to rearrange.

Patience is key.

A day will come when those tectonic plates clash and a financial earthquake shatters the status quo.

That day is approaching.

Like we discussed last week, that day will likely happen in months or years, rather than decades.

Having reached price bottoms at the end of 2022, both gold and bitcoin have rebounded strongly.

Bitcoin rose 62%. Gold rose 20%.

What is more, dedollarization is slowly happening:

• Central bank accumulated record amounts of gold (especially in Q3 2022);
• China, Russia, Brazil, Saudi Arabia, Indonesia, Kenya and others are taking consistent steps to decrease their dependence on USD as a reserve currency and as a trade currency;
• This week Janet Yellen, former chairman of the US Central Bank, confirmed dedollarization by stating she expects a "slow decline in the USD as global reserve currency";
• US Congress futher instructed Janet Yellen to prepare for China dumping their US Treasuries (USD).

Bitcoin is certainty in an uncertain world. More people are starting to realize this.

• El Salvador has been accumulating bitcoin since 2021.
• The Kingdom of Bhutan has been accumulating 2019.
• Other countries are very likely secretly accumulating.

I suspect they will announce it in the next price mania phase.

At that time, they will sell some of their coins to the people coming late to the party.

Don't be late to the party : )

The destination is known: hard money will dominate.

The path to the destination is unknown.

Countries will drop dollars for gold and bitcoin.

You can do it first and benefit later.

Patience is key.

Have a great weekend!