[2017-12-13]Digital Gold for Black Gold--Oil Rich Nations Eye CryptoAlternatives

[DowBit]

The growing popularity of cryptocurrencies may erode the dollar’s dominance. Western financial institutions, have dictated global commodities trade for decades. But now, many isolated nations are looking for alternatives. Digital currency may just be their solution.

The best example of this phenomenon — crude oil — is bought and sold in US dollars. This automatically links the oil market with US policy. Western powers have imposed sanctions on wayward, oil-rich countries making it difficult for them to trade in raw materials. Venezuela, Iran and Russia are most affected by Western economic pressure.

Following Venezuela’s model, Russia and Iran may consider using cryptocurrencies as an alternative to the dollar. A decentralised currency would facilitate the execution of oil contracts and would allow Russia and Iran to be independent of the greenback.

More: https://dowbit.com/digital-gold-for-black-gold-oil-rich-nations-eye-crypto-alternatives-to-the-us-dollar/

[1714799085]

1714799085

[iamTom123]

The growing popularity of cryptocurrencies may erode the dollar’s dominance. Western financial institutions, have dictated global commodities trade for decades. But now, many isolated nations are looking for alternatives. Digital currency may just be their solution. The best example of this phenomenon — crude oil — is bought and sold in US dollars. This automatically links the oil market with US policy. Western powers have imposed sanctions on wayward, oil-rich countries making it difficult for them to trade in raw materials. Venezuela, Iran and Russia are most affected by Western economic pressure. Following Venezuela’s model, Russia and Iran may consider using cryptocurrencies as an alternative to the dollar. A decentralized currency would facilitate the execution of oil contracts and would allow Russia and Iran to be independent of the greenback. More: https://dowbit.com/digital-gold-for-black-gold-oil-rich-nations-eye-crypto-alternatives-to-the-us-dollar/

I am sure that soon the dominance of the USA Dollar would be waning as many countries (especially those having some anti-America fervor) are finding ways and means to get away from the influence of the dollar in international commerce. Some countries have already agreed to directly transact with each other using their own national currencies and now we are seeing the idea of using cryptocurrency as the best way to avoid the dollar. So what is the problem with the USA Dollar? Aside from the fact that it is not anymore backed by gold and that the government can easily order for more printing, it has become the very symbol of American hegemony and the government has been using it to project power and influence anywhere. Countries which have the ambition of also leading the world can get so creative in downplaying this influence and soon their wish can be granted. USA must now gradually prepare for the time when the dollar would dramatically erode its value.

[tatu]

It would actually be huge if an industry such as the oil one would accept or start dealing with bitcoin. As the quote in the op said, oil is traded in dollars and it's why America goes to war over oil because not trading in dollars would be devastating to their economy and geo power. In fact, I read that one of the reasons Libya was invaded and Gadaffi ousted was because he was going to start trading oil in his own gold-backed pan African currency he was going to create (though maybe that was just a conspiracy theory but it wouldn't surprise me at all if it was true).