Cryptocurrency has been lauded as the new emperor of the economy with its ingenious trading facilities and machine benefits. Its stringent supporters have long proclaimed crypto-currency as the next fundamental commodity around which the market will circulate. But it seems like it still has a long way to go and a lot to do before the US dollar loosens its grip on the global economy and moves aside for the Bitcoin revolution. The green fiat emperor has been experiencing lower valuations, which has been exploited by the Cryptocurrency community. However, the fact remains that the dollar still holds massive power, which is not going to give up any time soon.
History and Beginnings
The economy of the whole world has been dictated by this green currency for a long time now. It all probably started after the Second World War as the United States of America spread its massive wings, and the Eagle become the gatekeeper of the treasury. The country gained considerable operative authority over the globe as its currency became the mandated currency of exchange for most international transactions and the economic capability to handle debts effectively.
The country’s previous incumbency had operated cautiously to maintain its global domination of the economy by being responsibly loose on financial barriers raised against other nations. But the current president has been more aggressive with curtailments on foreign countries that have turned many other influential players against the US dollar. Such an angry government has been developing their own economies free of the dollar’s grasp. But since the green currency has been winning the game for decades, it is not very easy to altogether remove it from the picture, especially since such a move would mean losing millions for many. The best to topple the dollar entirely rests with China, whose burgeoning economy coupled with advanced cryptocurrency capabilities, can do the job.
The dollar still enjoys the advantages that come with being the default currency of exchange when any two counties or financial holders engage in trading. Such an arrangement means the United States of America will experience freer trades with cheaper transaction costs and an ability to come out on top despite a large number of outstanding dues. But all things that begin must come to an end, and so will the predominance of the dollar.