The international monetary system will never have a constant value. As always, the value of money all around the world has a very high tendency of collapsing very quickly. Same is true with the US Dollars’ worth as it plummeted in reaction to a Trump presidency. Whether it will continue to be the trend for the next four years or could have just happened on Tuesday evening through Wednesday, I will place confidence on my argument below of what could have triggered to its collapse and why Bitcoin provides a perfect template for the future model.
The Trump Effect
There have been uncertainties in the US Dollar’s value succeeding the election. Throughout history, politics and economics have become intimately intertwined. The former is known to create substantial effects in the latter.
https://www.youtube.com/watch?v=SEz9XWYJcxs
Now that the US dollar’s value has fallen just after Donald Trump, a Republican presidential nominee has emerged as the winner, we are left with worries as to what changes he will introduce that will have an adverse impact in the monetary system of America. So let’s try to break down some reasons why Trump could change the dollar-based international system:
1. Racial Discrimination
Trump’s stands strong against immigrants, Muslims, and people from other races have received perceptions of impartiality in the law upheld in the US. This discriminating act has received critical views from foreign investors in holding dollar assets.
2. Isolationist Mindset
Trump has been known to aggressively discourage free trade amongst other countries and his disregard on other international security pacts. He is also known to have released some harsh statements against existing international agreements. The effects could be detrimental since the US’ relations with other countries have and will always be essential to the future of the US dollars in international trade.
3. Low confidence among foreign investors
Trump’s strong-willed comments on some of the trusted institutional leaders like Janet Yellen have affected the confidence of foreign investors in the future of America’s monetary system.
From a historical point of view, if Trump would really continue on these actions he clearly portrayed during his campaign, then foreign investors are sure to weigh their bets on the dollar.
How to Wean Ourselves off the Dollar?
Indeed, entering Bitcoin can be the solution. However, It provides the ability to distribute a network-run system of value transfer. However, this may cause the possible downfall of the US dollar’s value. Nevertheless, this digital money solution helps us become independent. Specifically, of the US-led international banking system. It enables governments to bypass banks and sanction them to build their own monetary policy systems.
There is no assurance that superpowers will inevitably descend on entering the Bitcoin industry. But, the idea of a distributed trust network possible with Bitcoin is sure to create a strong foundation for a possible financial system based on a decentralized and digitalized global economy.
