Bitcoin Will Become the Main Resistance’s Weapon of Governments Against the U.S. Dollar Monopoly

Iran leads the way that many countries will follow.

Sylvain Saurel
Nov 6 · 6 min read
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Image: Petre Barlea / Pixabay

The U.S. dollar has been the world’s reserve currency for a hundred years now. The Second World War, Bretton Woods, and then the establishment of the current system by Richard Nixon in August 1971 were all events that have only strengthened the hegemony of the U.S. dollar on the world.

This status as a world reserve currency gives an exorbitant privilege to the United States.

The American model is based on the monopoly of the US dollar

With the U.S. dollar’s monopoly over the world, every country pays for the standard of living of Americans. The American model of society is based on this undivided domination. The success of American multinationals is financed in some way by all the countries of the world.

To ensure that the U.S. dollar remains the world’s reserve currency, the U.S. will do anything to ensure that the U.S. dollar remains the world’s reserve currency. The American government spends hundreds of billions of dollars every year to ensure that its military is by far the strongest in the world.

The United States has never hesitated to use its military power whenever it felt that the U.S. dollar’s monopoly over the world might be in danger.

For countries that have not good relationships with the United States, the situation is even worse. Americans have the power to impose sanctions that hurt their economy. By doing so, the United States seeks to hurt millions of people and then hopes for a popular revolt against the government in power.

The U.S. dollar allows the United States to be the world’s policeman

This is the strategy that the Trump administration has been pursuing with Iran since Donald Trump decided in 2017 that the United States would withdraw from the nuclear agreement signed by the previous administration.

However, Iran had complied with everything that had been negotiated within the framework of this agreement. Iran had stopped its uranium enrichment program that was supposed to lead the country to obtain nuclear power in the future. In exchange for this halt, Iran was to be able to end U.S. economic sanctions.

Foreign investors were even beginning to return to Iran. Hundreds of millions of people had hope for a better future. Unfortunately, Donald Trump’s decision dashed the hopes of these Iranian citizens.

Since the end of this agreement, the economic situation has continued to deteriorate in Iran where hyperinflation is wreaking havoc. The population has logically turned to the best weapon at its disposal to fight this inflation: Bitcoin.

Bitcoin is already a Plan A for millions of Iranian citizens.

Iran is the latest example of a country that is being hit hard by U.S. sanctions

The European Union had at one time tried to circumvent U.S. sanctions to continue to help Iran develop economically. Unfortunately, the European Union is not strong enough to resist Washington’s wishes.

Under these conditions, Iran has decided to turn to the only world power that has the capacity to resist the United States.

Iran has drawn closer to China. The country of Xi Jinping, which aims to become the world’s leading power by 2030, has colossal energy needs to ensure its development. Iranian oil and gas are therefore of great interest to Beijing.

A strategic agreement is in advanced negotiations between Iran and China. We are talking about a 400 billion dollar agreement over 25 years. Iran would undertake to sell its oil and gas at advantageous prices to China. China would invest heavily in Iran’s economy. Besides, China could build a military base in Iran.

Iran is forced to move closer to China

For Iran, this agreement would present a double advantage. First of all, it would ensure strong economic support capable of reviving the Iranian economy. Secondly, it would allow Iran to protect itself from a possible American attack on its territory due to the presence of the Chinese Army in Iran.

The axis of Iran, Russia, and China is beginning to take shape to resist the United States.

Of course, trade between Iran and China would not be in U.S. dollars, but in renminbi, or even in e-RMB. The Central Bank of Iran has already said that it is now turning more and more often to the renminbi for its reserves.

That’s good for both parts because China also wants to break the monopoly of the U.S. dollar. Xi Jinping knows very well that China will not be able to become the world’s leading power by 2030 if the U.S. dollar remains the world’s reserve currency.

Beijing has embarked on the e-RMB project to benefit from the first-mover advantage in an area considered strategic by Xi Jinping.

But Iran is also making Bitcoin a major part of its future

Nevertheless, Iran does not want to put all its eggs in the same basket. As much as it will apply itself to trading in renminbi or e-RMB with China, Iran has decided to invest more and more in Bitcoin at the State level.

Since the beginning of 2020, Iran has issued nearly 14 licenses for Bitcoin mining farms. The electricity tariff will be halved to encourage the emergence of these Bitcoin mining farms. Of course, all these miners will have to work in concert with the Iranian government, and more specifically with the Ministry of Industry, Mine and Trade.

Each of the mining farms will have a capacity of 300 megawatts according to the news published by the Iranian government.

Iran wants to be a major player in Bitcoin, and this requires significant mining capacity to ensure the country’s independence in this field. In September 2020, Iran went even further by announcing the installation of mining machines in 3 power plants entirely dedicated to Bitcoin.

The Thermal Power Plant Holding (TPPH) could eventually represent up to one-third of the mining power of the Bitcoin network.

Countries will use Bitcoin as a weapon to free themselves from the American hold on the world

I am one of those who believe that a real mining war will take place in the future between countries to have the greatest mining power on the Bitcoin network. Some, like Iran, will leave ahead of the others very clearly.

At the beginning of October 2020, the United States decided to take new sanctions against 18 Iranian banks. A few days later, Iran continued to move forward in its desire to make Bitcoin a plan A for its future.

The Iranian government has indeed passed a law to authorize payments in Bitcoin for Iranian imports. This is a way to allow Iranian companies to have access to an international payment method at a time when the country no longer has any access to the global banking system.

It is difficult to say for the moment how much this decision will allow Iran to better face the American sanctions. Nevertheless, Iran shows very clearly the path that more and more countries under U.S. sanctions will follow in the future.

Bitcoin will become a weapon of resistance by governments against the monopoly of the U.S. dollar on the world.

Conclusion

Little by little, more and more countries will follow Iran’s strategy. This will be their best chance to continue their economic development despite the American sanctions.

If Satoshi Nakamoto designed Bitcoin to liberate the people by giving them power over money in the face of corrupt governments, Satoshi Nakamoto probably did not think that countries would come to use Bitcoin to free themselves from American oppression.

Yet that is where we are headed in the years to come. This will only increase the Bitcoin price and its adoption around the world. This is a good thing for the Bitcoin revolution, as it will ultimately benefit people all over the world.

In Bitcoin We Trust is a place where Bitcoin believers…

Sylvain Saurel

Written by

Entrepreneur / Developer / Blogger / Author. In Bitcoin We Trust: https://www.inbitcoinwetrust.net

In Bitcoin We Trust

In Bitcoin We Trust is a place where Bitcoin believers share their ideas about the upcoming revolution. Blockchain and cryptocurrencies are also covered in this publication.

Sylvain Saurel

Written by

Entrepreneur / Developer / Blogger / Author. In Bitcoin We Trust: https://www.inbitcoinwetrust.net

In Bitcoin We Trust

In Bitcoin We Trust is a place where Bitcoin believers share their ideas about the upcoming revolution. Blockchain and cryptocurrencies are also covered in this publication.

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