Donald Trump’s recent comments about the BRICS nations and his proposed tariffs are stirring discussions about the future of money—and Bitcoin might be a key part of that conversation.
What Is it with BRICS and the Dollar?
The BRICS nations—Brazil, Russia, India, China, and South Africa—have been exploring ways to reduce their reliance on the U.S. dollar for international trade. They’ve discussed ideas like creating a shared currency or using their own local currencies for trade. These moves aim to shield their economies from Western sanctions and reduce dependency on the dollar-dominated global financial system.
But President-elect Donald Trump is not on board. Over the weekend, he posted on Truth Social warning of a 100% tariff on any BRICS country that moves to weaken the dollar’s role in global trade. He made it clear that he sees these efforts as a threat to U.S. financial leadership and promised harsh economic penalties for any such actions.
What Does This Have to Do with Bitcoin?
Trump’s stance on BRICS and the dollar is leading to conversations about alternatives to traditional money systems. Anthony Pompliano, a well-known Bitcoin advocate and host of a popular podcast, summed it up well on X: “The future will be dollars for transactions and Bitcoin for savings.”
Here’s what that means. The U.S. dollar might remain the go-to choice for buying and selling because it’s widely accepted and easy to use. However, Bitcoin could become a preferred way to store wealth, especially in uncertain times. Unlike the dollar, Bitcoin isn’t tied to any government or central bank. It’s a decentralized digital currency, meaning no single entity controls it. For people worried about inflation, political tensions, or financial sanctions, Bitcoin offers an alternative way to protect their savings.
Why Bitcoin Makes Sense in This Scenario
BRICS nations want financial systems less dependent on the dollar, but creating a new currency isn’t simple. Their economies and politics are very different, making it hard to agree on shared rules. Instead, they’re focusing on using their local currencies and setting up systems to trade without the dollar. For example, China and India have already bought Russian oil using their own money, and the group is working on a payment system that skips the dollar altogether.
This uncertainty around global currencies could push people and even countries toward Bitcoin. It’s neutral, global, and doesn’t rely on trust in any government. For individuals, it’s a way to save money securely without worrying about political changes or inflation eating away at its value.
Trump’s Changing View on Crypto
Interestingly, the incoming president’s perspective on Bitcoin and cryptocurrencies has shifted a lot. He used to be skeptical, but during his 2024 presidential campaign, he pledged to make the U.S. a leader in crypto. He proposed ideas like creating a national Bitcoin reserve, replacing the head of the U.S. Securities and Exchange Commission (SEC) with someone more crypto-friendly, and setting up a Bitcoin advisory council. His family has even been involved in launching a cryptocurrency platform, World Liberty Financial.
These shifts suggest that Bitcoin’s role in the global economy could grow under the leadership of Trump. While his tariffs and threats against BRICS nations aim to protect the dollar, his crypto-friendly policies could also boost Bitcoin’s prominence.
What Does This Mean for You?
If you’re new to Bitcoin, now is a good time to learn about how it works and why people see it as a powerful tool for saving. Bitcoin operates on a blockchain, a decentralized network where transactions are recorded publicly and securely. It’s not controlled by any government, which means its value isn’t affected by policies like tariffs or sanctions. While it’s still a volatile asset, many see it as a hedge against inflation and political instability