A business either thrives or dies on innovation. In most cases those at the top become complacent and in doing so they stop innovating and often times don't see emerging threats as they become a bit too cozy. It seems we can now apply this to countries such as the USA who have been at the top since 1940's to today that they seem to have gotten a little too complacent themselves and trying to push their power on to others. The weaponization of the dollar has backfired in a big way.

In comes BRICS and it shouldn't be written off. While I don't feel it will overthrow the USA it still offers up a new competition with some of the largest GDPs out there. Today let's take a look at what's new with BRICS and how it could affect crypto, bitcoin and even the stock market.

BRICS

A quick overview of BRICS is this was started as a result of sanctions that the USA put on Russia. And well countries saw this as a threat because removal off SWIFT and sanctions while at war are extremely impactful but if you have options that type of "warfare" on your country just doesn't fly.

As of writing this BRICS now has a larger GDP then that of the G7 holding 35% of the GDP worldwide compared to the G7 at 30% showing us that BRICS actully has some solid moves and clearly a lot of countries that are tired of the USA oversight.

What's a little crazy though is while all of this has been going on the USD has actully become stronger than ever and Russia has now even said they might not ditch the USD now that trump is elected. That kind of shows you what a weak leader will do in the eyes of the world. I'm sorry to say it but people did not look at Biden as a strong president at all.

New countries added are Iran, Egypt, Ethiopia and UAE.

BRICS Pay

BRICS pay was announced at the meeting which is an alternative payment system that does not use the USD dollar at all. This means these countries can do large sums of trade without involving the USD at all now. Perfect for avoiding those pesky sanctions.

You can look at this all as the CBDC which is right up the ally of how countries like China, Russia etc operate and is something we should encourage NOT to be used here in the USA.

The system works off of a decentralized tech that uses QR codes for the most part. It's the wildest thing really.

Assets Worldwide

It's important to also understand all of this for investments. Stocks don't like unknowns and with a very real competitor coming online it could end up tanking stock prices.

However it could be of benefit to other assets like crypto for example.

Here's a breakdown of the current rough values of assets around the world and how it compares to something like bitcoin.

Bitcoin - $1.7 trillion
Crypto - $3.05 trillion
Gold - $16 trillion
Art - $18 trillion
Equities - $115 trillion
Real Estate - $330 trillion
Bonds - $300 trillion

So you can see how small crypto is overall and how much room it has to grow. In fact if it just replaced gold for example or had the same market cap of gold we would be looking at a nearly $700,000 bitcoin price which is why many people keep speculating a 1 million dollar bitcoin at some point.

What are your thoughts on these shifts. Should the USD be worried about BRICS ?

Posted Using InLeo Alpha