Bitcoin and cryptocurrency prices returned this week.
Bitcoin has fallen below $ 44,000, losing about 7.7%. Other major cryptocurrencies are also on a downward trend. Ethereum fell 5.4%, BNB 3.7%, Terra 0.3%, Solana 5.63%, Cardano 10.4%, and XRP 10.5%, and dogecoin 0.1%.
Now, there are some isolated, yet seemingly connected, developments that have given rise to wild speculation about the important role of Bitcoin in the long-term global financial system.
First, Russia is tossing around the idea of adopting bitcoin for its fossil fuel exports. Last week, Russian Energy Minister Pavel Javalni said “friendly” countries, including China, could be allowed to buy gas and oil in their currency. Or bitcoin.
“We have been proposing to China for a long time to switch between the national currency for the ruble and the yuan,” Zavalni said. He later added: “You can also trade Bitcoin.”
[Ed note: Investing in crypto is highly speculative and the market is largely unregulated. Anyone considering it should be prepared to lose their entire investment.]
Another big step “underground” – happened in Australia.
On the Run, an Australian company that owns more than 170 BP stations, will allow its customers to pay for petrol in Bitcoin. It will be the largest retailer in Australia to accept crypto. It is partnering with Crypto.com, a Singapore-based trading firm, to roll out processing terminals to facilitate this payment.
Marcus Sotirio, an analyst at digital asset broker Globalblock, thinks this could be the beginning of the rise of Bitcoin as a neutral “petro-asset.” “This adds weight to the idea of Bitcoin becoming a petro-asset after Putin recently allowed ‘friendly’ countries to pay for Bitcoin oil,” he wrote in a note.
For most of the last century, oil has been trading exclusively in dollars, which has cemented the value of the currency as a reserve currency. This is why the dollar is often called the “petrodollar”
But as I wrote last month, “The very foundation of this system, which has been in operation for the last 50 years, is being questioned. An article by The Wall Street Journal For example, author John Cindreau says sanctions on Russia, which show that central bank deposits can be easily taken away, raise the question “What is money?”
This has led Russia and its ally China to consider the option of a neutral oil payment in dollars. And Arthur Hayes, co-founder of BitMEX, believes that gold, or even bitcoin, can meet this need.
“A new neutral reserve resource, which I believe will be gold, will be used to facilitate global trade in energy and food. From a philosophical point of view, the central bank and the sovereigns appreciate the value of gold, but not the value of Bitcoin … Bitcoin is less than two decades old. But don’t worry: Bitcoin will be as successful as gold. ”
In the long run, Hayes expects gold to reach $ 10,000 at the venue, which he thinks will make hard money assets, including digital, more valuable. If gold hits that mark, Hayes believes the price of bitcoin could be tied to 1 million per coin:
“As gold moves above 10,000 10,000, Bitcoin will move to $ 1,000,000. The bear market in Fiat currency will trigger the world’s largest asset transfer.”
Blackrock CEO Larry Fink also thinks the war will accelerate the acquisition of digital assets, although he has not specified any crypto or targets:
“War will persuade countries to re-evaluate their monetary dependence … Even before the war, several governments wanted to play a more active role in digital currency and define the regulatory framework under which they operate,” he said.
Bitcoin has come a long way.
Not too long ago, Wall Street laughed at this cryptocurrency as the biggest fad in history. And lawmakers view Bitcoin primarily as a tool for drug traffickers, money launderers, and other monstrous characters.
Today it is increasingly being supported by some well-known fund managers as a repository of value And the world’s third-largest oil exporter is considering it a settlement currency for its $ 300 billion energy exports.
That being said, such tectonic shifts usually take a long time to play. And they are very difficult to predict. But just talking about “Petrobitcoin”, no matter how far-reaching, is a sign that this crypto is maturing as a financial unit.
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