Can Bitcoin challenge the dominance of the dollar over the world economy?
While the BRICS countries – Brazil, Russia, India, China and South Africa – are considering an alternative currency to the US dollar as a global reserve, former US President Donald Trump also said during his recent speech that “the dollar in It is falling.”
In this context, the popularity of Bitcoin, a digital currency that emerged more than a decade ago, is rapidly increasing as a new protocol that changes the current order in the financial world.
To GazRSh Bitcoinist, some experts believe that Bitcoin, with its superior purchasing power, can change the course of the global economy and even challenge the dominance of the US dollar as the world’s standard currency. But can the world’s largest digital currency challenge the dominance of the dollar over the world economy?
Bitcoin vs Dollar: A Tale of Two Buying Powers
Based on a chart by a financial analyst with the pseudonym (Seth) shared on Twitter, the growth of Bitcoin purchasing power since 2010 (1389) has been staggering. This leap is in stark contrast to the purchasing power of the US dollar, which has been steadily declining over the past years.
The consequences of this process can be very important. Especially since it has the potential to change our understanding of money and the entire financial system as we know it. In fact, luminaries such as Robert Kiyosaki, author of the financial bestseller Rich Dad, Poor Dad, have already noticed this shift.
Known for his financial acumen, Kiyosaki has repeatedly expressed doubts about the future of the US dollar, telling his fans to invest in bitcoin, gold and silver instead of dollars. He even went so far as to describe the US dollar as “fake money” and stressed the need to take action and protect our assets.
A new era of purchasing power dynamics
As Seth’s chart shows, the purchasing power of the dollar has been declining for more than half a century, and has fallen sharply from 300 points about 60 years ago to the current 33.2 points. This trend is in complete contrast with the significant increase in the purchasing power of Bitcoin from 33 in 2010 (2010) to the current 255 points. This is a staggering growth of 672.73% in just 13 years.
Just as the world is witnessing these historic changes in the purchasing power of the dollar, it is clear that Bitcoin is emerging as a strong contender in the financial world. While we are not yet fully aware of the consequences of this change in trend, it is becoming increasingly clear that the traditional financial system may no longer be able to keep pace with the pace of innovation.
As we live in this new financial age, it is up to us to decide how to adapt to change and grow.