BRICS, Gold, Bitcoin: Threat to US Dollar by 2024?

• US Dollar Under Siege: BRICS, Gold, and Bitcoin
• BRICS and De-Dollarization
• BRICS: UAE Ditches U.S. Dollar for Oil Trade
• The Extended Gold Rush
• Gold Price Set to Reach New All-Time High
• Bitcoin and the Digital Asset Revolution
• Bitcoin: Standard Chartered Forecasts ETF to Result in 165% Gain in 2024

US Dollar Under Siege: BRICS, Gold, and Bitcoin

In the recent past, the United States has been battling economical difficulties. Struggling with surging inflation rates has led to fragility in its financial state, alongside the rest of the globe. However, the coming year presents a potentially tougher challenge as BRICS, gold, and Bitcoin$42,260 -0.64% could deal a heavy blow to the US dollar. Each of these three factors has far-ranging implications that could significantly hinder the growth of the greenback in the ensuing year. They all suggest a possible downfall of the dollar, a probability we will unravel in this article.

BRICS and De-Dollarization

BRICS: UAE Ditches U.S. Dollar for Oil Trade

ING was listed among a number of economists predicting a downturn for the US dollar in 2024. They explicitly stated a drop should be anticipated, "barring huge unexpected risk premia emerging in the currency space," during the year. The economic alliance of BRICS plays a substantial role in this forecasted decline.

The BRICS bloc has made no secret of its stance on the US dollar. In fact, they have openly advocated for a decrease in the international reliance on the greenback. Moreover, they have set in motion their strategies to reduce such dependency, evident through their multi-lateral trade activities.

The transpiring effects of these strategic plans are expected to surface in the coming year, as numerous countries have already consented to partake in these de-dollarization efforts for 2024. BRICS, while being a significant factor in the decline, is expected to partner with gold and Bitcoin to further challenge the US dollar.

The Extended Gold Rush

Gold Price Set to Reach New All-Time High

An additional factor that should weaken the US dollar is the growing prominence of gold. The rising interest in the precious metal has several implications for the greenback. Primarily, it poses an attractive investment opportunity for countries as the dollar continues to underperform.

Secondly, the popularity of gold is deeply tied to investor expectations regarding the performance of the US economy. The precious metal is often seen as a shield against inflation, and its rising popularity could potentially influence the fate of the US dollar.

It was predicted that gold would surpass its 2020 all-time high of $2081 at some point in 2024. Nevertheless, the asset is quickly nearing that figure at present. Consequently, its popularity is rapidly increasing, with bulls seizing the advantage thus far. If this trend continues, the US dollar could face further opposition in the coming year.

Bitcoin and the Digital Asset Revolution

Bitcoin: Standard Chartered Forecasts ETF to Result in 165% Gain in 2024

The last factor set to pose a significant challenge to the US Dollar is Bitcoin. Specifically, the dollar will be contending with the extensive digital asset revolution taking place worldwide. The United States has been vocal about its opposition to such developments.

Bitcoin is predicted by Standard Chartered to soar to prices of $100,000 after the coming year. Such a projection points to a monumental shift in the financial landscape across the globe. This does not even take into account the growing global shift towards digital assets as a form of currency.

China has made significant strides with its digital yuan, with other nations following suit in developing their own digital currencies. As these currencies become more dominant, these countries are expected to shift away from the US dollar. The year 2024 promises to be ripe with such opportunities.

Edited by Jonathan Stoker