Will Bitcoin destroy the US dollar?

See the latest Australian dollar analysis here:

Macro Afternoon

Via the excellent gents at Nordea:

Could Bitcoin undermine the dollar and the United States? Perhaps. We do see reasons to mull the long-term value of the dollar – not primarily because of cryptocurrencies, but due the country’s economic-political choices and China’s continued rise…

Investor and entrepreneur Peter Thiel recently wondered if not “Bitcoin should … be thought [of] in part as a Chinese financial weapon against the US”. To try to explain what this could mean, we turn to recent economic research on fiscal and monetary capacity.

There are 1681 words left in this subscriber-only article.

Start your free 14-day trial today!

I’m not worried about either because:

  • At some point, the US outlaw BTC.
  • China has virtually no allies. Trading in a particular currency is as much a strategic as it is an economic decision. The US alliance network will largely eschew it.
  • At some point, before China is rich, its economy will stop growing.
David Llewellyn-Smith