Dollar Hegemony Over Bitcoin Guaranteed By US Army

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Jeroen Kok

Jeroen is one of the lead copywriters on Cryptotips.eu and discusses all recent events in the crypto market. This includes news updates, but also price analyzes and more. He developed his passion for cryptocurrency during the bull run in 2017. He has learned a lot since then. The combination of cryptocurrency and creative writing is perfect for Jeroen and an excellent way to share his knowledge with a wide audience. Find me on LinkedIn / jeroen@cryptotips.eu
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Both economist Paul Krugman and famed Uber venture capitalist Jason Calacanis made a similar argument to defend the dollar against Bitcoin.

Both men state that the dollar hegemony in the world as it’s preferred reserve currency is guaranteed for years to come, not because of the dollar strength of course, but because the US still has the largest standing army.

In fact, they both admitted that Bitcoin has no intrinsic value, just as the dollar does not. Bitcoin is a computer code while the dollar a piece of printed paper. The only difference between the two is that the dollar is protected by men with guns, as per Nobel prize winning economist Paul Krugman.

The New York Times columnist famously explained his distaste for crypto in a 2018 summer op-ed entitled Transaction costs and Tethers: why I’m a crypto skeptic.

In it, Krugman explained his point that:

Fiat currencies have underlying value because men with guns say they do. And this means that their value isn’t a bubble that can collapse if people lose faith.

Calacanis repeated that stance last week as he attacked Bitcoin on CNBC.

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Changing World Order

Problem is that according to famed author and investor Ray Dalio, this could prove to be an indication that the dollar’s demise has only just begun.

Dalio, whose new book The Changing World Order: Why Nations Succeed and Fail is groundbreaking when it comes to indicating the demise of the dollar (and thus the USA), claims that every empire goes through the same set of rise and declines, from the Spanish and the Dutch in classic times, till the British and the Americans in the last two centuries.

The renowned hedge fund manager explains that the US has just passed the point of no return and that with the printing of money and issuing credit, a new world order is upon us.

The man has recently started admitting that he now sees value in Bitcoin as a hedge against the excessive money printing of the Fed and is even going slightly bullish on crypto as of late.

Could the dollar’s demise actually have begun?