You are viewing a single comment's thread from:

RE: This month’s huge sell off correlates with the value of US Dollar appreciating

in Project HOPE • 5 years ago

Dear @mintymile

Interesting choice of topic.

Right now indeed everyone is panic selling all their assets to get their hands on cash. After all during credit crunch cash is the king.

And also it's important to notice, that during current coronavirus crisis many businesses and regular people will struggle with lack of income. And credits, loans, morgages, pensions, taxes - it all need to be paid.

It seem that FIAT currenty is not so worthless as we thought it is. After all value of FIAT = our debt. And there is more debt out there than FIAT currency altogether.

However, US dollar may lose it’s World Reserve Currency status

Is there any ofher currency which could replace it? I don't see any other FIAT being strong enough to do it. Russian or Chinese currencies are having very little trust. And they face similar problems with overblown debt. Euro is a joke. So which currency could become USD replacement?

Going into negative rates isn't also end of the world. EURO has been there for many years. So in long run it may be troublesome, but short term it shouldn't affect markets (Except of increasing more panic sell).

Have a great monday :)
Yours, Piotr

5 years ago in Project HOPE by
$0.00
    1 vote
    Reply 1
    Sort:  
  • Trending
    • [-]
     5 years ago 

    @crypto.piotr, you forget...that CHina is developing the digital currency, they already have tie ups commercialy through technology through ALi Baba associations, so digital yuan can become world currency.

    Read this for more perspective -
    https://magazine.cointelegraph.com/2020/03/16/china-digital-yuan-economic-cyberweapon-us-disarming/?_ga=2.200928042.522126518.1584451545-1313679894.1583415690

    Fiat will die out soon, I am sure about that. My point in the article is not fiat currency but people buying US dollars and hoarding it taking it as safe haven asset. I can bet that fiat particularly the US dollar will fall due to negative interest rates, and that will have repercussions in global economy, people will hedge in GOLd, silver and maybe bitcoin.

    It sounds great but it will be a big pain for all of us, allthough Bitcoin would rise if its takenn as safe haven.

    I am sure its the END OF THE FIAT currency that's Govt. issued. Wait and see!!!

    $0.00
      Reply