USD is the most powerful legal tender. But, BTC is much better.
The dollar value has been decreasing during the last 100 years, which means the purchasing power has been decreasing.
KRW(Korean Won) was one of the developing countries currencies. The exchange rate has been increasing. Over time, to exchange from KRW to USD, it would need more KRW. Therefore, keeping KRW or investing Korean-based assets would be risky with respect to the exchange ratio, inflation and portfolio.
We recognize that USD is better than other legal tenders. Take a look at the above chart. To exchange from USD to BTC, it needs around 25k USD. BTC has been much better than USD during the last decade. No one can't deny the fact.
My conclusion is BTC > USD > other legal tenders. Other legal tenders seem like altcoins in the world of legal tenders.
I am almost certain that there will be a global economic crash worse than in 2008. They are trying to keep interest rates artificially low, and that cannot last for much longer. Countries will fall one by one like dominoes, and in this scenario, gold and cryptocurrencies will win, as they are deflationary.
Agreed. But, in the beginning of a next recession, cryptos will be difficult together..
👍.. That's why it's better to invest in crypto with more liquidity, like bitcoin. If people start to see crypto as a safe haven rather than a risky investment, demand may increase. And if there is a recession, people may lose trust in central banks, and that's when the crypto market could separate from the traditional market. It's complicated to predict !!
Another possibility is as USD depreciates, inflation sets in and they might need a viable hedge against inflation. I know a lot of people will say GOLD but then you need something that can be globally accessible and easily transacted; this is where BTC becomes the popular choice and with adoption slowly creeping up, the choice of accepting BTC might become easier. But that will be accelerated if crypto industry becomes regulated which have already begun with lots of top exchanges like Binance, Kucoin, Bitget and Bybit already announcing KYC requirements for their users.
Let's keep our fingers crossed though!!
Upvoted! Thank you for supporting witness @jswit.
Interesting read.
I have always consider the USD to be great. Never really gave a thought to other possibilities. Now this has given me something to learn more about.
I would say that gold is far better than any fiat currencies, I mean in form of investments if one is going to take the traditional route for investments for investing into stocks, shares and such. Gold protects against inflation and is as much protected by the government as much as fiat itself I guess. Better to hold any fiat in form of bought digital gold if one is not investing in crypto. Else inflation is going to burn the fiat money sooner or later!