Thursday, April 14, 2022

The Bitcoin Will Displace The Dollar (And Putin ... Putin First)

The dollar being the de facto global currency is not healthy for the world economy or even for America. But a de facto global currency has been needed. And the dollar has played that role since the end of World War II.

But the displacement will not come from the euro or the yuan. One dollar can not be replaced by another. The argument against the dollar is also the argument against the euro and the yuan.

This is like saying CNN should not be the only source of world news around the world. CNN was that when Bush Sr. started dropping bombs on Baghdad.

Look at CNN today. It is past tense. But it is still around and doing brisk business.

You can digitize the dollar, but it is still the dollar.

Crypto will displace the dollar. And there is nothing the US government can do about it. The march is unstoppable.

The dollar's place in the scheme of things is the reason the US economy has massive deficits. When your primary export is the dollar, you are going to end up with lots of goods and services in return if you are not giving out the dollar for free.

The US ends up with free money. It prints money for domestic consumption. And that money goes into global circulation. Free money for the US.

Looks like there is value in creating a stable, global currency. The crypto people realize that. They are busy creating money out of thin air.

The dollar is the print edition of the New York Times in 1993. There is no saving it. Although the Times is still around, and is my favorite newspaper today. I pay a dollar a week to read it. But I am so glad I have 100 other news sources. That is not counting the 1,000 sources on social media.

So if Putin is unhappy about the dollar and its status, he might as well root for the crypto crowd.

No, I am not saying he should pour his personal wealth estimated above $300 billion into Bitcoin. That would be even more outragenous than when Elon Musk put $3 billion into it.

World's Richest Man Elon Musk Thinks Putin Is Richer Than Him
Elon Musk claims Russian President the world's wealthiest
Putin Net Worth: Putin has 43 planes, 7000 cars and a gold toilet… Russian President is ahead of Elon Musk in wealth! Nemtsov says that Putin has a huge collection of watches worth Rs 5 crore. Putin’s superyacht, which was spotted earlier this month, is worth Rs 7 billion. According to reports, this superyacht is currently in the Baltic Sea. Alexey Navalny, Putin’s biggest critic, claimed that Putin owned a luxury palace worth 100 billion rupees and located near the Black Sea coast.

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