Is the Dollar Doomed? Counting Down to Its Collapse
The greenback's dominance isn't what it used to be—but how long until the bottom falls out?
Signs of weakness
De-dollarization accelerates as BRICS nations pivot to alternatives. The Fed's balance sheet looks like a overleveraged hedge fund's last resort. And let's not pretend Washington's spending habits inspire confidence.Digital challengers emerge
Bitcoin just hit its third halving cycle—and institutional adoption makes 2020's crypto winter look like a minor chill. Stablecoins now process more volume than some national payment systems (take notes, SWIFT).The countdown clock
Forecasting exact timelines is a fool's errand—but every 10% jump in BTC's market cap shaves months off the dollar's shelf life. Goldbugs and crypto-anarchists agree: the fiat endgame has begun.Closing thought: Maybe fiat currencies and gym memberships share the same business model—they bank on you believing in tomorrow's value while delivering yesterday's promises.
How Many Years Are Left Till the Dollar Loses Its Crown?
The dollar collapse has now officially begun. Various nations have now started to ditch the dollar for other currencies, starting a new phenomenon. This phenomenon was unknown to the world before and came into the picture soon after the dollar was weaponized heavily to impose sanctions. Moreover, the sanctioned forces continue to rummage for alternatives, giving birth to new currency options that could challenge the US dollar on a broader spectrum. For instance, the world realized how it does not want to depend on a single currency, a movement that gained widespread momentum after Trump’s tariff decisions started to impact nations around the world.
President Donald TRUMP also wanted a weak dollar. The frail American currency was supposed to help neutralize the economic pressure. But the idea backfired, owing to the bad economics that were at play in the end, all along. The deliberate weakening of the dollar led other currencies to take charge. Moreover, Trump’s tariffs on global nations further weakened investors’ confidence in the currency, prompting giants like Morgan Stanley to predict another 10% decline in the USD by 2026.
Dollar’s Fall: Ticking Time Bomb
Despite the economist’s stark warning, the US dollar is now on a path of gradual decay and erosion. The currency is now forecasted to degrade at a gradual pace, challenged constantly by rising currency competitors and peers.
said Rogoff, a professor of economics and the Maurits C. Boas Chair of International Economics
To put a label on top of this decay, the US dollar collapse has already begun. Rogoff is of the opinion that by the next decade, we may encounter USD locking horns with other strong competitors, the ones that are in line to snatch its reserve status away.
Here’s a chart from the Federal Reserve that shows how foreign exchange reserves have changed since 2000. The dollar has been slowly but steadily losing its share of foreign reserves: pic.twitter.com/1CRpMWJCPu
— Genevieve Roch-Decter, CFA (@GRDecter) March 29, 2023