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BRICS: Alliance Exploring Bitcoin Adoption for Global Trade

BRICS: Alliance Exploring Bitcoin Adoption for Global Trade

CryptodnesCryptodnes2024/10/29 20:00
By:Cryptodnes

In a recent interview on CNBC’s “Squawk Box,” Matthew Sigel, VanEck’s Head of Digital Assets Research, discussed Bitcoin's potential impact on global trade dynamics, particularly among BRICS nations.

He anticipates that the U.S. may face economic repercussions, including a possible debt downgrade from Moody’s after the upcoming election, which could enhance Bitcoin’s status as a global asset.

The BRICS bloc—now expanded to include Egypt, Ethiopia, Iran, Saudi Arabia, and the UAE—has a combined GDP surpassing the G7. Sigel noted that countries like Argentina, UAE, and Ethiopia are already involved in government-backed Bitcoin mining initiatives, reflecting their urgency to reduce reliance on the U.S. dollar.

Russia is also advancing its Bitcoin mining capabilities through a partnership between BitRiver and the Russian Direct Investment Fund (RDIF), focusing on creating facilities for Bitcoin mining and AI across BRICS nations. Sigel suggested that this could pave the way for using Bitcoin in international trade.

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He remains bullish on Bitcoin’s long-term prospects, predicting it could reach $100,000 to $200,000 soon, with U.S. fiscal challenges acting as a catalyst. VanEck’s model envisions Bitcoin becoming a reserve asset by 2050, potentially valued at $3 million if integrated into global trade.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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