Once considered one of the strongest currencies to ever exist, the US dollar now stands at a precarious threshold. The currency is now attracting stiff competition from the rising world order, standing in the middle of a possible financial revolution.
With concepts like dual and multipolar currencies flourishing in space, the US dollar is now inching closer to its potential collapse. As US debt metrics continue to swell, the looming questions persist. How will the US economy handle the brewing pressure without injuring the USD’s prestige and repute in the process?
Also Read: Gold & Bitcoin: Dual Currency Contenders To Bring Down The US Dollar?
3 Reasons Why the US Dollar Is On Verge Of A Collapse
The Rise of the Dual Currency Concept
The world is currently witnessing a novel currency shift. Countries are now opting for regional currencies to boost and accelerate their commercial proceedings.
Nations have also started to decrease their reliance on the US dollar to bolster their currency narratives. However, as new concepts continue to gain prevalence in space, a new theory of dual currency is taking over the vertical, gnawing at the US dollar more profoundly.
The dual currency narrative entails promoting the usage of two currencies to conduct micro and macro proceedings. Per a notable financial analyst, Chamath Palihapitiya, the dual currency narrative is getting increasingly popular among nations, which may further erode the USD’s reputation in the long haul.
“There’s an increasing body of countries that will become dual-currency. They will look at their local currency, and they will look at Bitcoin. And they will say both of these things are needed. The first is when they’re transacting daily for goods and services, and the second is when you need to buy a permanent asset that needs to have residual value; they’ll buy bitcoin.”
The Spike in Gold and Bitcoin Usage
With the introduction of Bitcoin ETFs, the world is now inching towards exploring BTC and gold as safe-haven assets in the wake of the degrading US dollar. With swelling debt metrics in sight, the world seems to be in the process of shifting towards new currency alternatives, spiking the values of gold and bitcoin in the process.
As China continues to dump US bonds, the signs are clear that the US dollar is losing global traction as its alternatives gain strength in the space.
Degrading US Economy
The US economy is standing on the brink of a possible collapse. The inflating debt numbers have now started to inch towards breaching the $34 trillion price mark, adding paralyzing pressure on the US economy.
At the same time, the government expense interest metrics are also spiking, adding fuel to the raging narrative. The qualms about US weaponizing the US dollar have also played a pivotal role in deteriorating the US economy, which has done a number on the US economic data metrics.
Nations are now actively exploring concepts that promote the multi-polar narrative instead of relying on the US dollar for their national growth and progression. The reduced demand may also compel the USD to fight for its supremacy, further jeopardizing its position as the leading global currency.