This is a transcribed excerpt from the “Bitcoin Magazine Podcast,” hosted by P and Q. In this episode, Jeff Ross joins them to talk about why he thinks we’re still in a bear market and which country he thinks it’s going to be in. be the next to adopt bitcoin as a reserve asset.
Listen to the episode here:
Q: China has a lot of our debt and now we’ve seen what the playbook is if they do something the US doesn’t agree with. As Iran has seen for the last 50 years, as Russia has now quickly seen, what happens when China goes into some kind of sanctioned time period, why wouldn’t they try to go ahead and follow the Russian playbook and strengthen their own dollar? further diminishing the value of the US dollar and the world stage? Is that a feasible scenario?
Jeff Ross: Yeah. I mean, that’s absolutely what they’re doing. And that is absolutely what Russia and China are doing. I think they are in collusion on this. They are joining. They’re saying that the US (from their perspective), the US has screwed us for so long. Why are we allowing this? I think this happened a long time ago, a decade ago, they decided, “What are we in this system for? Why do we keep buying US Treasuries and supporting the US military industrial complex? Why wouldn’t we take a different approach and try to leave the US dollar as the world’s reserve currency? So what we are going to do is follow the old school playbook that we are going to strengthen our own currencies by backing them with commodities.”
So what has happened in the last decade? China was buying raw materials like crazy. They were stocking merchandise. Russia is very rich in raw materials, right? Tons of oil in Russia. They both have a very significant amount of gold and have been increasing their gold reserve. And just your general commodity stores.
Why? They’re going to basically use that as a basis to say, “Look, everybody knows that the US dollar is literally backed by nothing. It used to be backed by gold until 1971. And then they went off the gold standard and are literally backed by nothing. If you disagree, the US military will come after you and the sanctions will come after you. That is the price we pay.”
So they say, “We have an alternative and now we are powerful and America is old and senile enough.” No pun intended for our leaders, but basically [America is] ruled by octogenarians who have dementia and we are a shrinking power.
Russia and China say, “Look, this is our time to stand up and say we have a stronger currency that’s based on real commodities, like gold, oil, that kind of thing.” Now, I would say that the one thing they are not considering, Russia and China, is that Bitcoin to me is the most obvious, best, hardest asset.
Yes, it’s digital, so you can’t touch or look at it, but it is what it is: it’s basically perfect money. So if I were them, and I’m not of course, and I’m not sympathetic to many of their causes, but they should back this in Bitcoin. They should use bitcoin as a reserve asset to show: “Look, not only do we have gold, oil, and other commodities to back our currencies, which are stronger than the US dollar, we also have a lot of bitcoin. :Look how strong we are.”
That would be a good way to point the finger at the US, on the other hand, which is in decline and has a dollar backed by nothing, backed by Treasuries, which is backed by the dollar, which is not backed you are welcome. They should say, “Dude, we should print as much money as possible and we should buy as many bitcoins as possible as a reserve asset to strengthen our weakened US dollar.”
They absolutely should be doing that today. That’s the first thing they should do right now on their agenda, but of course they won’t because it gives bitcoin credibility and recognizes that we’re getting weaker and we would never do that.
I’m just not in this game playing like, “Hey, we’re so strong and we’d never admit that we’re weak and we don’t need help and we run the world.” I think that’s so stupid and that’s how great empires crumble and fall and fall into dark oblivion. That’s where we’re headed right now and I hate to see it.
Hopefully, at some point, we will get some Bitcoiners further up the legislation. Let’s hope we have some Bitcoiners for president. Let’s hope we get some Bitcoiners in the Treasury and Federal Reserve[eral reserve] and all this kind of stuff. Then that will change.
By the way, my prediction is that Japan will be the first. They’re a long way from that right now, but they’re in such dire straits right now and they keep trying all these crazy, nasty things. Is it really that unpleasant to think of Japan, instead of buying all these other junk things and buying all the stocks in the country and buying all the bonds and all this kind of stuff, what if they bought some bitcoin and strengthened their currency that way? ? That would actually provide longevity and strength to your coin. It wouldn’t be that crazy, and if they did, every other developed nation would be forced to do it. That would be game theory in action.
I am waiting for that announcement. I hope it happens. You heard it here first. I’ve been talking about it for about a year or so. We’ll see what happens, but if I had to guess which developed nation was going to adopt Bitcoin as a reserve asset first, I’d pick Japan as the dark horse.