Dollar Era: End or Continuation?

Dick Bove, one of the leading financial analysts, said that the era of dollar dominance was coming to an end.

This view is not original. However, as a rule, politicians make such statements to impress the public. Now analysts who deal in figures, facts and do not depend on public opinion have started talking about the problems of the dollar.

The decline in the impact of the dollar is obvious. Brazil, Russia, India, China, Bangladesh are clearly pursuing a policy of de-dollarization of mutual settlements.  

This is due to political processes, balance-sheet changes in the world economy and subjective factors.

The dollar has another problem namely giant American public debt, which in principle cannot be repaid. 

Analysts have no consolidated opinion on the future configuration of the financial system. Some believe that the dollar will retain dominance, but not on such a large scale, some predict the leadership of the Chinese yuan, and some believe that several cryptocurrencies will be leading.

However, I believe that cryptocurrency is underestimated. Analysts work at the coordinates of the existing fiat system, hence, respectively, comes logic and conclusions.

Cryptocurrency represents a fundamentally different financial system namely decentralized. It does not completely coincide with fiat. The decentralized system is much more efficient and reliable, but more difficult to implement.

Finance, like any other human activity, is subject to evolution. Today, the evolutionary pinnacle has become a blockchain and cryptocurrencies, sooner or later they will displace competitors.

Crypto infrastructure is building at record speed, so we have a chance to see a new financial system soon.

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