China's rare earth export controls accelerate dollar collapse…"Funds move to Bitcoin and others"

China's controls on rare earth exports have been suggested to cause a decline in the value of the dollar.

On the 20th (Korean time), Cointelegraph reported that market analyst Luke Gromen said, "China's restrictions on rare earth exports have shaken the U.S. defense industry," and argued, "This is an event that could trigger the collapse of the dollar." He added, "President Donald Trump declared he would impose an additional 100% tariff as soon as China controls rare earth exports," explaining, "The current incident has far greater impact than many experts think."

China currently accounts for more than 90% of global rare earth production. Gromen said, "This rare earth export restriction is a measure that could shake not only the supply chain but the global monetary order."

Gromen also proposed Bitcoin (BTC) and other real assets as a long-term solution to this unstable situation. He said, "The root cause of the U.S. economic problem is the dilution of currency value," and "individuals and companies will buy Bitcoin and gold to defend purchasing power, and consequently the prices of those assets may continue to rise."

Market research firm The Kobeissi Letter said in a report, "The dollar is having its worst year since 1973," explaining, "It has fallen by more than 10% so far this year and has lost 40% of its purchasing power since 2000." It added, "As long as the decline in currency value continues, investors will move to physical assets such as Bitcoin and gold to protect asset value."