This discussion presents an interesting contrast between traditional fiat currencies and the emerging world of cryptocurrencies. Undeniably, USD's dominance is reflective of the USA's economic power. As @hispo illustrated, despite political tensions, USD remains a key player in global transactions. It has this aura of stability that other currencies often lack.
However, here's where my skepticism creeps in. Saying that a downfall of the US would boost crypto markets to the moon seems oversimplified. While it's true that instability often leads to increased investment in alternative assets, the transition from fiat to crypto won't be a walk in the park. Moreover, a global economic shift as big as the US losing its leading position would cause ripples across all financial markets, not just cryptocurrencies.
As for Bitcoin or any other crypto becoming the world's reserve currency, I concur with your reservations. The decentralized nature of cryptocurrencies, while attractive to some, is a hurdle too high for governments worldwide to jump over - at least in the foreseeable future. It's a wild west out there in crypto land, and I don't see governments handing over the reins anytime soon.
However, here's where my skepticism creeps in. Saying that a downfall of the US would boost crypto markets to the moon seems oversimplified. While it's true that instability often leads to increased investment in alternative assets, the transition from fiat to crypto won't be a walk in the park. Moreover, a global economic shift as big as the US losing its leading position would cause ripples across all financial markets, not just cryptocurrencies.
As for Bitcoin or any other crypto becoming the world's reserve currency, I concur with your reservations. The decentralized nature of cryptocurrencies, while attractive to some, is a hurdle too high for governments worldwide to jump over - at least in the foreseeable future. It's a wild west out there in crypto land, and I don't see governments handing over the reins anytime soon.
We may be seeing signs of American decline, but it's not over yet. This is a slow and steady process that will take years (probably decades) to accomplish. A fall in the USD's status as the reserve currency may shook crypto markets for a short period of time. But long-term speaking, market prices should go all the way to the moon. That's because the USD will become less-valuable over time. Since crypto (especially Bitcoin) is deflationary, anything affecting the USD's value (mainly inflation) would benefit market prices as a whole.
Maybe this will force countries to add crypto into their porfolios as a sort of hedge against inflation? It would make crypto (especially Bitcoin) an ideal store of value just like Gold. The US debt limit was just suspended until 2025, so time will tell us what will happen with the mainsteam economy after then. I have a feeling crypto will prevail, as Fiat currencies see their demise in the long run. Just my opinion
