Why the USD is heading for replacement sooner than many expect

Everywhere we are seeing massive inflation in the cost of finite goods. This isn't just USD but all government fiat currencies. Traditional investors are bidding up real estate to record levels, food, energy, most basic goods are going up in value. Cryptocurrencies are absorbing some of the wave of people trying to protect their savings from being inflated away.

USD may be rising in comparison to other fiat currencies in the short term but how is it compared to Bitcoin and other hard assets? It's on a steady downward trajectory.

If you look back in recent history the world has used a new currency as a reserve roughly every 100 years. We went through different empires controlling those currencies. US, Britain, France, Netherlands, Spain, Portugal. Why would it be any different this time? We are in the end stages of the currency being printed to infinity. This can't possibly last more than a few years now. The deficit's are multiples of what they were a decade ago and every year this is increasing. The US has no intention of ever paying off this debt, it's going to just print to monetize the debt.

Is the USD going to disappear? Probably not but will shift into a domestic currency as other reserve currencies shifted to as their use declined.

There is another issue of sanctions being used to punish any country that doesn't follow US demands. This is directly forcing other countries to find other means of payment outside of the USD. You have to wonder why the US would contribute to the use of alternative payment systems outside of using the USD, is it all short term thinking or do they already accept that the USD is heading for replacement sooner than many expect?

The petro dollar has held up for fifty years to guarantee USD usage but recently Saudi Arabia has made deals to sell oil in other currencies. BRICS nations are doing direct trade outside of the USD. This has now accelerated with Russia demanding payment in Rubles.

Trillions in debt need to be paid in USD. This enables some demand for USD but why would anyone hold USD up until the point of payment if it's devaluing when it can be purchased later at a lower price? Bitcoin and cryptocurrencies are the new reserve assets. Central bank digital currencies will be attempted but really offer no improvement for all the problems of a fiat currency printed to destruction when governments spend more than they should.

As we transition to more decentralized systems that are interconnected the need for traditional archaic systems like SWIFT will be retired. When you compare trying to send a bank wire transfer with a Bitcoin or Ethereum transaction it's painfully obvious which one takes mere minutes vs days. Trust is secured in these networks replacing a centralized authority to oversee payment transfers.

Pricing in USD is a unit of account for now but with all reserve currencies a day will come when a superior unit of account is used. As BTC rises in value and volatility decreases a day will come when BTC becomes the unit of measure for goods.

Please leave your thoughts and comments below. Cheers!