De-dollarization: Do all roads eventually lead to Bitcoin?

The U.S. dollar’s reign as the reserve currency of the world could be coming to an end. CryptoSlate’s latest market report explores the de-dollarization of the world to find what role Bitcoin will play in the global economy.

The U.S. dollar has been the chosen medium for international trade and the global reserve currency for 79 years. The Bretton Woods Agreement of 1944 established gold as the basis for the U.S. dollar and pegged other currencies to the dollar’s value.

It was the first time in history that a group of nations negotiated a global monetary order, which proved successful in the years following World War II. The system was secured because the U.S. owned over half of the world’s gold reserves.

However, economic recovery in Europe and Japan decreased the U.S.’s dominance in global trade. In addition, an overvalued dollar caused by inflation and growing public debt pushed the U.S. to suspend the dollar’s convertibility into gold in 1971.

As the dollar’s value was no longer tied to gold, the Federal Reserve was tasked with maintaining the currency’s value. The central bank, however, failed to preserve the dollar’s value and began increasing the money supply, which caused the currency to lose two-thirds of its value in the following decade.

The devaluation of the dollar has continued well into the 21st century.

In 2023, the dollar’s position as the global reserve currency is in jeopardy, And while its dominance over the worldwide market has been shaken in the past, the danger has never been so great.

This report explores the macroeconomic events causing the dollar’s fragility, the consequences of a weak dollar, and Bitcoin’s place in a de-dollarizing global economy.