This is a transcribed excerpt from the “Bitcoin Magazine Podcast”, hosted by P and Q. In this episode, Julian Liniger joins them to talk about the fundamentals of Bitcoin and why bitcoin is experiencing mass adoption in Europe until and all during the bear market.
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Julian Liniger: With developments in Russia, China, etc., there are initiatives to try to weaken the US dollar as a reserve currency. Do you think people are afraid of this in the US, that this could happen in the near future that the USD will lose its status as the dominant reserve currency? What role does Bitcoin play in this scenario (if it is a scenario)?
Q: Absolutely. I think you have to separate the answer into different groups of people. I would say there are three just for simplicity, knowing very well that they are closer to 500. I would say that the first group is the Bitcoiners, who buy into this narrative a lot, who see the writing on the wall and see how the moves that the US government is making and moves that foreign governments are making are on a direct path to eventually the US dollar no longer being the global reserve currency.
I think there is a sentiment and I will speak for myself mainly that if more countries are given the ability to price oil in their own native currency. It does not need to be formally announced. It doesn’t have to be a statement from OPEC or the EU or somewhere else that says, “Hey, the dollar is not the global reserve currency.” For me, whatever the global standard for the price of oil is, in the medium term, it will be the global reserve currency.
There is the secondary problem of the impending collapse of the European bond market. We have seen this happen in more developing countries. We see the collapse of the Japanese yen. Now there is another class of people who believe that in the short term the strength of the dollar will continue to increase, but inevitably with that increase comes added pressure, and ultimately I always come back to: Why do we believe? that the people who made the decision to put us in this situation we are in now, why would they also be the same people who could get us out of the position they put us in? So I would sort of explain these two within the Bitcoin community.
And then, in my opinion, there’s a vast majority of people in the United States who don’t understand or really understand what it means for the global reserve currency to be our native currency and to be the currency that our country and our government can print. . endless? The vast majority of these people can be told all these things and yet would rather be told, but it doesn’t matter. “The US dollar has been around my whole life and will continue to be.” And I think there’s a lot of denial. I have it among my close friends who I’ll have these kinds of conversations with, and their response will be like, “Yeah, but like the government’s going to solve it. Like the US dollar isn’t going away.” I think there will be a lot of pain in this class of people. I think many of them will be surprised when the inevitable happens.
So the final group of people I think is, or are the decision makers, the government people who maybe see some, but not all, of what the Bitcoiner class sees as the inevitability of the end of the dollar. They believe that if they just do one or two things right from here on out, then things will go back to normal and everything will be fine. And the US dollar and the US will remain in power.
I honestly believe that it is the combination of these two ideas that fuels our policy makers here in the country. Whether they are right or wrong (I think they are wrong). I’ve said for a long time that the best example of this is Jerome Powell coming out in 2021 saying, “Inflation will be temporary. Don’t worry about it. It’s not a problem.” Only then, in April or May, do you swear in a hearing before Congress and say, “Yes, we were wrong. We didn’t know as much as we thought. And that’s why we’re here.”
I have no reason to believe that, from that time to this day, he has learned so much that his decisions will right the ship. But I think I’m in the minority.
