If not having money in crypto, then in what?

[OKboomer]

Erm, wouldn't the USD losing⁤ 99% of its purchasing power over the last 100 years qualify as "the end"? So⁣ dollar as a concept does exist and probably will, but its value has diluted so⁢ much that treating it as a meaningful store of value (or even express value in︀ its terms) needs critical reassessment.
I wrote my "findings" in the bump post︂ made a week or so ago. Nothing new. Crypto so far still seems to be︃ overall the best to me. Everything else is even less promising
Yes. I wonder if coronavirus will lead to even more aggressive tax policies in large economies.︆
Yeah, I was asking about medium to long.︉ And when I started this thread, Corona was not yet a thing...

 

[Sols]

You're right. This is why no international trade (including trade that doesn't involve the US)⁣ is conducted in USD and why no country uses USD as a foreign exchange reserve.⁢ No central bank would do that, because financial geniuses have figured out that the USD︀ is worthless and, effectively, over.

 

[Educate]

And unlike USD other fiat⁤ currencies doesn't suffer from inflation?

 

[OKboomer]

Wait , but aren't US⁤ treasury bonds essentially USD ? And haven't most major economies amassed trillions in those from⁣ their trade? So effectively USD is used as a reserve , no?

 

[JohnLocke]

Not sure if this thread still belongs to the Bitcoin forums or rather in the‌ General business forum... thread is subject to monitoring.

 

[Martin Everson]

Yes they are. In the sense that China hold its USD cash reserves in US‍ Treasuries and so does Warren Buffets Bershire Hathaway hold his cash reserves in US Treasuries⁠ and pretty much all major companies who hold USD cash hold it in treasuries either⁤ directly or via a liquidity fund invested in US Treasuries.

Yes

Yes

 

[LouisB]

It's a very strange and⁤ misleading comment as the part of foreign reserves denominated in USD is still over 60%⁣ and it is just because European countries keep mainly EUR for an obvious reason. British⁢ pound, Japanese Yen, Swiss franc and others have only a few %

 

[KJK]

Yes, most of foreign currency reserves are in USD.
However, I expect the power of‌ USD / US of A to decrease in the future.

They can lose importance faster‍ than you may think; just consider what Fed is doing right now. It is acceptable⁠ only due to historical reasons and the reserve currency status.

https://en.wikipedia.org/wiki/List_...n-exchange_reserves#Foreign_exchange_reservesThe top table doesn't⁤ differentiate between currencies but what's more important are the top 5 listed countries - 6.3⁣ trillion USD reserves held by China, Japan, Switzerland, Russia and Saudi.

None of these countries⁢ are probably very excited about the status of the US dollar.
- China for a︀ long time was undervaluing its own currency, basically the Chinese worked so that the Americans︁ could consume, largest export of USA was consumption and debt. Now the Chinese realize there︂ are other options as well, e.g. a strong internal local economy
- Japan probably believed︃ they will do better by buying US assets and US currency rather than the local︄ economy (which already is nationalized and in stagflation anyways)
- Switzerland has a lot of︅ money so they just have to put it somewhere, probably aren't huge fans of Euro︆ as a concept...
- Russia has large reserves because it went through crisis and as︇ a result it has been loading up on foreign currencies and gold. Putin last year︈ declared that "role of dollar should be revisited in global trade", he wouldn't love anything︉ else more
- Saudi Arabia has local currency pegged to USD and the petrodollar system︊ benefits them hugely compared to their enemies in the region. They get dollar and keep︋ it. However if oil is too cheap, they will get hurt a lot by the︌ currency peg.

So what is the solution to that?
One interesting idea are SDRs created by the International Monetary Fund, a basket of currencies
Another idea was Facebook's Libra, a︍ funny combination between cryptocurrency and SDR that will probably never launch.
Then you have Bitcoin,︎ however what country would willingly switch to a decentralized currency that makes your monetary policy️ useless?

USD worked in the past because there wasn't anything better really. The situation may‌ be different now.

 

[Sols]

I think my sarcasm wasn't clear enough. I⁤ found OKboomer's message preposterous and tried to show that by taking the line of thinking⁣ to its extreme.

 

[JohnLocke]

There are still Diamonds, Gold, Silver and a lot of other great investment opportunities beside‌ the USD! To believe the USD is something that will survive when anything else fails‍ is naive.

Turning this to a USD discussion may not be what OP initially wanted⁠ so I will close this thread.