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The dollar, although America’s leaders defend it tooth and nail, is not as brilliant as people would have us believe. It’s losing momentum, it’s giving economists a hard time. But luckily, there are other promising options for investors who don’t mind thinking outside the box. If the dollar weakens, other assets such as Bitcoin could benefit from a fall in the royalties.
Finance: Opportunity amid monetary chaos
The world of finance is going through a chaotic phase where traditional currencies such as the dollar and yen are under attack. PUSH key rate cuts from major central bankslike the Swiss National Bank (SNB), heralds an era where fiat currencies falter.
The SNB has cut rates three times this year, from 1.25% to 1.0%, while admitting that further cuts may be necessary.
This prudent monetary policy aims to stabilize particularly low inflationbut it clearly shows how delicate the situation is. Meanwhile, the strong and unmanageable Swiss franc continues to strengthen and put pressure on Swiss exports.
For investors looking for safe havensDigital assets such as Bitcoin (BTC) appear to be a viable alternative.
The Swiss franc remains strongbut currency fluctuations, especially those of the dollar, send a strong signal: diversification of your investments becomes a necessity. Especially since analysts predict that the pressure on traditional currencies will not stop anytime soon.
Some points to remember:
- SNB cuts rates three times in 2024 to counter inflation;
- Despite the efforts of the SNB, the Swiss franc continues to strengthen;
- Investors are increasingly turning to alternative assets such as Bitcoin.
Dollar: End of government announced?
A dollar, before a symbol of economic poweris now showing worrying signs of decline. Faced with the rise in power of the BRICS (Brazil, Russia, India, China, South Africa), the hegemony of the dollar is challenged.
The Swiss central bank is not the only one revising its monetary policy: in the United States, the Federal Reserve also took drastic measures with a 50 basis point cut.
But despite these attempts to keep the dollar afloat, the reality is inexorable: the loss of confidence is gradually taking hold.
Developing economies, e.g. China, strive toreduce its dependence on the dollar, which could hasten its downfall. Investors are now questioning whether it is still relevant to keep part of their portfolio in dollars.
Cryptocurrencies, and Bitcoin in particular, seem to be doing well in this context. As the dollar falters, more dynamic assets attract attention and capture financial flows, offering a potentially lucrative alternative.
This means that the decline in the value of the dollar, associated withthe rise of the BRICSrepresents a turning point for the global economy. With their independence from central banks and traditional monetary policy, cryptocurrencies are becoming increasingly attractive solutions for those looking to secure their wealth in an uncertain world.
In short, the collapse of the US economy and BRICS, the author of its own currency, will have global consequences. Even Bitcoin, a controversial asset, could benefit from this global economic upheaval.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.