What Will Dethrone the US Dollar and When?
View this post on Hive: What Will Dethrone the US Dollar and When?
5 years ago in #money by indigoocean (67)
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China has spent the last 6 years importing thousands of tons of gold and doesn't let an ounce leave their country, buying all of its own domestic production.
China's goal is that large gold holdings make currencies more credible candidates for reserve currency status. Their thinking is to have the yuan become a reserve currency.
Buying precious metals is the way to go as the world deals with a global monetary restructuring.
Yep, yep, yep!
@indigoocean, I don't look much into the Current Economic State but i know it's really an important subject to follow and to study because if we can catch the trends and if we can understand what is happening then for sure we can take effective decisions and alternatives because we never know which problems can shake an Economy, so understanding is vital.
Wishing you an great day and stay blessed. 🙂
Even though I know the US best, so write from that perspective, I hope you find this helpful in thinking about what might prepare you and your family for various eventualities.
Thank you so much. Have a great time ahead. 🙂
this was really well written ... glad I am following you ... I definitely don't know nearly as much as you about global financial markets so I hope you keep teaching us the truf!
#resteemed
I’m happy to share it. I deeply want to help more people prepare for this transitional period to come out on top. Thanks for the resteem!
I think the US still has another generation or so unless things gets out of hand from a social perspective here (which is not out the question either). The IMF would most likely start makeinf moves to achieve more diversity and protection on the world monetary systems. I believe they may look toward a blockchain like solution to help in governing the money supply. In the meantime, I am stackin metals and HODLing crypto as well!
How many years do you consider to be in a generation? Definitely instability will motivate a tightening of timelines. I wonder if we may not be perceived as unstable now though.
20-30 years in my opinion... Those that have set forth this monetary policy will continue to work in the shadows to make it work until others take over and learn how tangled this is!
Interesting perspective! Well we’ll see if the chewing gum holds that long.
I don't really have faith that crypto will take over, not because they won't let it, though you make great points in that regard, but because I don't know if it will be ready. Processors have reached their limit to a large degree. Now they're actually getting huge. And yet crypto can barely handle the tiny transactions of the tiny amount of people that use it currently.
If there are significant advances in the coming years to make crypto more capable, maybe it might play a larger part of the picture...and I'm not sure if they can really stop it...just make it more difficult. But if what you're saying is true, they might actually be willing to give us their power if we're in an economic crisis with money falling.
I know I don't have any more faith in precious metals...well...not much more. They spike in value during crisises, then fall, so they probably are a good investment if a crisis is coming, but I for sure don't wanna put my bets on them. There were reasons we went away from them. Can you imagine having to use a fork lift to bring a chest of gold to pay for your new car?
All these monetary systems are just like a balance sheet. Maybe the current ones will fail due to abuse, and another will come along. I don't know what that will be...but I have more faith in crypto for some reason than gold or silver. There's a chance it can improve as it gets more and more users, or at least there will be new coins that will keep up. Maybe the former giants won't let it...or they'll try...but maybe that just means that maybe we shouldn't live there.
I’d not seen that crypto (other than ETH) wasn’t robust enough to handle large transaction volume yet. Good to know. Within the next 10 years, do you foresee it catching up to the demands of even 10% of the global cash flows?
I definitely see precious metals as a hedge. Did you know that almost every time a currency has collapsed, the way the government regained confidence in their currency was by adopting a new one backed by gold? A few exceptional cases they backed the new currency with farmland or used someone else’s currency instead. So good to have some for those possibilities, but I wouldn’t put more than 5-10% of my portfolio into it.
I also believe in the possibility of crypto long term more than other options. I just hope that when it does become large enough to be a threat governments don’t make it an imprisonable offense to own it. Very few people are that diehard crypto.
10%...maybe... But just take a look at Bitcoin. It's our coin that has the largest volume of users, and it's barely usable. It's still quicker than a wire transfer, and cheaper, but is still pretty bad. It has been kinda slow to adopt updates yet. Most of the other coins have a lot fewer users, but are more often used for common transactions because they are faster and cheaper to use. As we get more adoption and the other coins get as popular as Bitcoin, we might see how well they actually work.
Now, of course, as they grow, more and more people will work to confirm transactions, which will help them work faster and deal with larger volumes. The question is if updates and increases in computational resources will keep up with the growth...or if it will get a bit too slow to use. Of course, there are also third parties that act as wallets and verify transactions before they are verified by the blockchain.
With every increase in the number of users, there's an exponential growth in use. Right now, only a tiny fraction of people are using crypto, and they're holding all sorts of coins, and they can't even use their crypto most places. Some of them have cards that they can use crypto with. Imagine if that number doubles. The strain on the markets might make some coins quite a bit harder to use. If that growth continues after that, and updates and improvements can't keep up, then maybe it won't really be usable. Then we will have to use third party wallets for everything.
If we do actually have to use third parties, that actually gets rid of the problem of government's not wanting it due to lack of oversight, as they could easily control those third parties and seize people's money. If we all have to use wallets that complete transactions faster than the crypto market to have instant transactions, then they just deal with those companies.
Hmm...then perhaps Venezuella's idea of a petroleum backed crypto wasn't such a bad one...
That might actually increase it's numbers. Look at what it did for pot. Is a joint really worth going to jail for? Probably not. Do people still smoke it like crazy? Absolutely. It actually ended up getting so many users that it eventually had enough users and backers to start to defeat the prohibition.
Your take on all of this is very interesting! I have been watching many YTers for 5 years straight and all say USD Is over and Now. I find this hard to believe considering bankers and those in power do live the dolllar. Also to see you say crypto isn’t the answer is one of the first expressions I have seen on Steemit. I cannot wait to see if or when this all happens.. if it does. I cannot predict either way, I just know I will be taken care of and that’s good enough for me. I have other work to do. 🤷🏽♀️
To a great extent I feel this to. I know I'm always guided to well-being. I've lived through many recessions, and other than the first one, when I was just graduating college, I've done very well during them. When all is going down, I'm always going up.
For me there is the extra element of this feeling I need to be helping others prepare though. So I am a bit obsessed with organizing the info in a way it makes sense to those who are still led by their minds.
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