What is the Future
of Your Dollar
What will happen to your money in years to come? According to a CNBC article, in 25 years the U.S. dollar will probably still be the world's reserve currency, and bitcoin may not even be around. Even so, this doesn’t mean the future of your dollar won’t have changed at all.
Money is based upon trust. The dollar is trusted for transactions domestic and international, legal and illegal. But what about cryptocurrencies like bitcoin taking over? Many have predicted that token-based systems are just at the start of their explosion.
"The future of money will really be on finding ways to transact in a lower-cost way, and that's a societal trend, not just bitcoin," Vecchio said.
When it comes to the dollar, although its fate can’t be predicted, it seems to have a bright future ahead. Three conditions must be in place before the dollar could collapse. First, there must be an underlying weakness. Second, there must be a viable currency alternative for everyone to buy. And third, there must be a huge economic triggering event that destroys confidence in the dollar. This is said to be unlikely because of our foreign dollar holders.
However, there are ways to protect yourself from a dollar collapse. Keep your assets well-diversified. No one knows the future of the dollar, but you should always remain prepared.