In an appearance on CNBC’s “Squawk Box,” Matthew Sigel, Head of Digital Asset Research at investment firm VanEck, predicted a significant shift in international trade with the possible use of Bitcoin by the BRICS countries. Sigel’s understanding comes amid growing concerns about monetary policy in the United States and increasing efforts by emerging economies to avoid traditional financial systems.
“We think that once the outcome of the election is finalized, Moody’s will downgrade the U.S. credit rating, and that could be a trigger for Bitcoin,” Sigel said. He emphasized the unique features of BTC, noting, “Bitcoin is a chameleon. It is difficult to predict what it is associated with. Because of the 21 million and fixed income, it is not a US asset. “
BRICS Will Accept Bitcoin: VanEck
The BRICS organization—which includes Brazil, Russia, India, China, and South Africa—has recently expanded to include five new members: Egypt, Ethiopia, Iran, Saudi Arabia, and the United Arab Emirates (UAE). This increase boosted the bloc’s combined GDP to surpass that of the G7 nations.
“BRICS held a summit in Russia; there are six new members, so their GDP is greater than the combined GDP of the G7,” Sigel said. “Of the six new members, three of them—Argentina, the UAE, and Ethiopia—are mining Bitcoin with government resources. There is an urgency outside the US to find a way to bypass monetary policy here in the US. “
Russia is taking strong steps to strengthen its BTC mining infrastructure. The country’s largest data center company, BitRiver, has partnered with the Russian Direct Investment Fund (RDIF) to build mining and intelligence data centers across BRICS countries. The partnership was announced at the BRICS Business Summit in Moscow on October 18, 2024.
“We will focus on creating an infrastructure based on mining – building data centers and connecting them to the necessary energy sources to enable AI project deployment and development across the country,” said BitRiver CEO Igor Runets.
Sigel outlined Russia’s strategic moves: “Russia announced that its sovereign wealth fund will invest in a regional fund to build Bitcoin mines across the BRICS with a view to solving global Bitcoin transactions.”
He suggested that future geopolitical changes could lead to wider acceptance of Bitcoin in international transactions. “One day, I don’t know if it’s five or ten years, Putin will die. We will look to reintegrate these countries into the world system, and trade in Bitcoin-what do we do?
Kirill Dmitriev, CEO of RDIF, echoes the feeling of technological sovereignty: “The development of computing power for the use of artificial intelligence in various industries is a priority for Russia and the partners of the BRICS alliance. Sharing a high-tech infrastructure will allow members to reduce costs, reduce dependence on external technology, and manage valuable data.”
Notably, Sigel remains bullish on Bitcoin futures. “It’s going to be a $100,000 property soon, $200,000. The smallest circle ever was 2,000%. If we do half of that, 1,000%, we will be at $180,000, “he said. He expects that the financial development after the election in the US will serve as an important stimulus for the appreciation of Bitcoin. “I think that after the election there will be a big role. You can see it first on the Wall page Street Journal talks about debt and deficit concerns Moody’s telegraphs this.
VanEck has developed a long-term model that predicts the rise of Bitcoin as a global reserve asset. “We have a model that takes 2050—this is a long time—Bitcoin becomes the last asset used for global trade and stored in the central banks of the world at a minimum rate of 2%, and in that model, we reach $3 million,” Sigel. it was revealed.
At press time, BTC traded at $71,029.
The featured image was created with DALL.E, a chart from TradingView.com
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