Most bitcoin holders suffer from dunning kruger effect(people who know the least often overestimate their knowledge and intellect).Take scott melker (the wolf of all streets) for example- a former dj turned into crypto and finance expert.Most buttcoiners believe that us economy and usd will collapse which will result in bitcoin going to moon. Lets be honest there is no reason for people to buy bitcoin unless they were being sold this stories. People have been predicting collapse of us dollar and economy since Nixon took us off from gold standard in 1970 and it has not happened yet.
- The U.S. dollar is the most traded currency in the world, and growing according to the Bank of International Settlement and this will not change anytime soon. The us dollar is essentially the backbone of global trade, if dollar collapse so will the world economy including bitcoin. In the event dollar does collapse, what will become next reserve currency? yuan? not in a million chance.. us,eu, south korea, japan, australia, india and most major countries in the world will never accept yuan as reserve currency. Dollar is the reserve currency because of the trust of other countries who are willing to accept it for trade. Its honestly funny seeing buttcoiners cheering for the collapse of usd without fully understanding the implications.
- The entire idea that a currency should be backed by something or have limited supply is spread by people who have no understanding of economics or finance. If a currency has limited supply, all it does is encourages people to hoard the currency thereby thwarting economic activity and productivity. The world saw tremendous growth and productivity increase since nixon took us dollar off gold standard in 1970. Companies and governments are less incentivized to invest in research and development if a currency has limited supply. One of the reason why a normal recession turned into a great depression in 20s and 30s was because of the gold standard. (https://economics.mit.edu/files/1233)
- The us economy will not collapse. People have been predicting collapse of us economy for over 50 years now. The common argument given is that us is printing boat loads of money. A country cannot default if majority of the debt is in their own currency and especially when that currency is a reserve currency. There is still heavy demand for us dollars around the world. US had higher debt to GDP ratio than currently after ww2 and guess what? we did just fine, infact we prospered. (https://tradingeconomics.com/united-states/government-debt-to-gdp).. japan has had higher debt to gdp ratio than us for 20+ years and they are doing just fine.. sure their growth has stagnated but a major reason for that is their demographics(aging population)..us has mitigated this problem to some extent through immigration, infact us has one of the best demographics among developed nations.
TLDR: US dollar and economy will be just fine.
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