The question of will or should I say when will the dollar market crash is always in the mind of investors. Should we be praying for this? Of course not, the global impacts will be deterring. Nevertheless, numbers don't lie and overtime they always bite back exactly no matter the cover ups. How much debt are we talking of on a global scale? As of 2023, we were talking of figures up to $97 trillion. Debt has been a strategy to solve global challenges, just has it happened during the pandemic. Central banks keep printing to salvage humanitarian conditions, something that leaves me in the middle. Should they always give deaf ears to human needs? Of course not. Humans top the food chain and will always look for possible ways to survive.
Have you ever asked questions like, what is the possibility of running a debt free world?. First, countries would have to pay off all debt, will they ever? This is why many believe the dollar market will crash because it is a near impossible manifestation. Firstly, we have to look at the low economic growth we are globally facing. This in the process shortens government chances of generating enough revenue to salvage the debt pile. Maybe the right English here should be an increase in debt against Gross Domestic Product (GDP). It is more like buying a house on loan to gradually pay back with interest yet, the revenue generated is not enough to pay back and adding to the fact that you have to maintain the house also in the process. We all know where this leads to; bankruptcy.
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Was it actually a mistake to introduce the paper notes or Fiat? We all know how difficult it was to quantify goods and services. Pegging currency to hard minerals like gold and silver had the issue of rarity. Nevertheless, just printing out of government order and exchanging goods and services for government confidential papers in the name of notes has caused us a lot. Firstly, it coming from a centralized source means the likelihood of manipulations. We have seen situations where those in power print as many notes as possible to stay rich. Don't they know the number effects? They don't care, it is one big question I keep asking, are there no economists in the government houses. They are but their advice has remained irrelevant for a very long time.
Power is the debt
The world is in debt because of power, of course we need power to keep the society in check. Nevertheless, this same 'in-check' power has ravaged the global economy. The effect of Fiat currency was that right from inception, it was an emotional currency. What does this translate to? Emotions in the hand of unethical humans equals greed. Debt is a business, we have seen advanced countries use this to take advantage of developing ones. On resource calculations, we have seen several developing countries having the hedge, why then does the PPP (Purchasing Power Parity) always switch?. If you ask me about the future of Fiat, when looking from the angle of GDP against debt, it is a sure crash.
Crypto to the rescue
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Crypto is unregulated, has volatile markets and the rest bla bla bla has always been voiced by many government and regulatory agencies. Let's get it straight, if Bitcoin was a centralized technology, many governments would have adopted it to salvage current economic situations. As I earlier said, if Fiat was operating independently, we are certain we wouldn't be seeing such a global debt pile. I will always say, it's not about volatility issues, it's control. Are government agencies ready to give out global financial control to the people? I doubt that. The reason why the gold standard couldn't stand was accessibility, rarity against resources, and difficulty to transfer. Let's look at Bitcoin, it has a scarcity or should I say rarity nature but not against resources. This helps drive its price upward.
Fiat has been a victim of inflation, I feel top institutions are now seeing a lesser risk of keeping assets in crypto, especially bitcoin, than local currencies. Why I am forefronting bitcoin is its market cap that exceeds $1 trillion, it curbs volatility swing as related to the altcoins industries. Should the government not look to how to incorporate such tech and rescue a pending financial doom? The human population should double up in the next fifty years. Why are seeing high birth rate especially in Africa, how will low work output salvage the situations. More debts Ofcourse to settle the crisis will be the best option.
To conclude, let me add, the global finance is hanging on a thin line. I feel crypto surfaced in times like this for a reason; to mitigate the current situations. Government own Fiat is vulnerable to debt and inflation. If the global market should crash, I am wondering how long it will take to recover. Whether the government choose to admit it or not, Fiat is not safe, global business and investors are at big risk and this may manifest in the next two decades or less.