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Analysis of hidden risks and potential hyperinflation due to dollar assets
The accumulation of hidden risks and liabilities in the form of dollar assets and US government bonds held by foreign investors may lead to potential hyperinflation. A shift towards Bitcoin as a global reserve asset could trigger a mass sell-off of dollar assets, causing their value to plummet. The network effect and debts denominated in dollars are currently holding the system together. However, once inflation worsens and a strong reserve currency emerges, a rapid transition away from the dollar is likely. This could result in a domino effect of countries and corporations buying Bitcoin, causing a spiral where delaying investment leads to worsening situations, forcing entities to jump in due to game theory dynamics.