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Cryptocurrency Overtakes the Power of the U.S. Dollar

Cryptocurrency Overtakes the Power of the U.S. Dollar

As inflation hits markets across the globe from computer chips to steel, lumber and food, the cryptocurrency craze is no exception. Investor speculation on digital currencies are showing signs of fear that we may be facing a massive bubble that could burst at any time.

This week, according to an article from futurism.com, cryptocurrencies have hit an all time high valuation of 2.25 trillion dollars. That alone surpasses the total amount of all U.S. print dollars and hard coin currency in circulation across the entire globe combined. U.S. dollars amount to around 2 trillion dollars in circulation, a number that cryptocurrencies matched in late April according to an article from the Wall Street Journal. 

In merely a year of time, current market graphs show that cryptocurrencies total valuation has skyrocketed from a quarter of a trillion dollars to the 2.25 trillion dollar mark. 

While the most popular cryptocurrency, Bitcoin, has doubled its value in a matter of months, the second place currency of Ethereum broke $4,000 dollars for the first time. Since this weekend, values have slightly dropped from these highs, but the upward trend still remains for the moment. 

Dogecoin

Another rising cryptocurrency, Dogecoin, had a swing through the weekend as well. It actually plummeted downward as Elon Musk appeared on Saturday Night Live. Investors in Dogecoin had high hopes that a mere mention of the currency from Elon might bring the value of the coin to the much desired dollar mark. Instead, prices fell down to half that as confidence in the coin dissolved during the show and into Mothers Day through the weekend. 

During a skit on Saturday Night Live, the actors joked about the cryptocurrency. They laughed while admitting that Dogecoin is “just a hustle”. 

Without hard resource backing, what happens if the bubble pops and cryptocurrency markets collapse? You may be close to being able to buy a Tesla with crypto, but you cannot pay your bills or get groceries from the store or gas for your car with crypto without trading it for dollars. When the foundation for a money is a seemingly imaginary construct, what happens if confidence is lost?

Without confidence, there can be no value. Without value, could the entire crypto market become worthless? 

Investors continue to play the cryptocurrency game for the moment. But as real world demand increases for hard materials and basic necessities, we will have to wait and see if confidence in crypto continues to drive gains forward into the future. A potential collapse could be just right around the corner.  

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3 Comments

  1. Ben

    Jacob,
    I am not invested in crypto, but I have close friends that are, so I research and listen to them with fascination.
    In reality, the dollar isn’t backed by anything other than the government telling us it’s worth something. The bottom could fall out at any time. The dollar really isn’t much different than crypto since we’ve abandoned the gold standard.
    Wether you like it or not, America’s standing in the World is shrinking. This includes the power of the dollar. When America wields its power in ways contrary to the world’s best interests, is it any wonder that the world would conspire to find ways to lessen our influence ? This includes finding ways around the influence of our dollar.
    We are in for a rude awakening, it is a global world that revolves around the sun, not a world that revolves around America.

    Reply
  2. Anonymous

    WHEN YOU HAVE IDIOT ARTICLES LIKE THIS IT CAUSES THE LITTLE INVESTOR TO PULL OUT OF SOMETHING THAT CAN REPLACE THE DOLLAR BECAUSE 99% HAVE VALUE AND BECAUSE THEY TALK OUT OF BOTH SIDES OF THEIR MOUTHS DOES NOT HELP !! I HAVE CRYPTO AND KNOW THAT ITS BETTER THAN THE DOLLAR AND THE REST OF THE WORLD IS ACCEPTING IT AND MORE AND MORE BANKS AND FINANCE AND GOVERNMENTS ARE GETTING ON BOARD AND CORPORATIONS AROUND THE WORLD !! VIETNAM VET 67-68

    BIDEN WILL DESTROY OUR ECONOMY AND AMERICA WITH HIS COMMUNIST AGENDA AND THE DOLLAR WILL BECOME A JOKE, OTHER NATIONS ARE ALREADY WARNING BIDEN TO STOP PRINTING, BIBEN WILL PRINT US INTO A THIRD WORLD COUNTRY !!!!

    Reply
    • Ben

      Anon .. or Vet, what ever name you’re posting under today,
      Crypto is NOT something new. It is NOT popular because of Bidens communist agenda ( its a socialist agenda.. but not really.. it’s really a capitalist agenda. But we aren’t hunting the poor for sport yet, so you freaks call it any scary name you can think of )
      In fact, it got popular while trump was in office. Sooo.. maybe you could extrapolate a reason from that info.. but I doubt it.

      Reply

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