Currencies

Mike Novogratz, the founder and CEO of the cryptocurrency investment firm, of Galaxy Digital, is one of many Bitcoin investors that is delighted to see the cryptocurrency’s value heading down of late but he wouldn’t be surprised if we were to end the year at $30,000 and that, one day, Bitcoin will hit the magical $500,000 mark although not within the next five years as he once predicted.

Today, more than 60% of all foreign currency reserves in the world are in U.S. dollars - but there are big changes on the horizon...Some of the biggest economies on earth have been making agreements with each other to move away from using the U.S. dollar in international trade...[and this shift] is going to have massive implications for the U.S. economy. [Let me explain what is underway.] Words: 1583

If we want to better understand the answer to the elusive question of "When will the fiat U.S. dollar collapse?", we have to watch the petrodollar system and the factors affecting it.

I came to the conclusion several years ago that it was just a matter of time before the world realized that the relative functionality of the U.S. dollar was about to go belly up - to collapse. Below is an explanation as to why I have come to that conclusion and what I think it would mean for the well-being of the world.

When the supply of something is increased sharply relative to demand, the value of that commodity will decline. If the supply continues to increase rapidly and indefinitely, then that item will become worth less and less, with the potential to finally become nearly worthless. This is the Developing Disaster facing the US Dollar and the world. This is the factor that could become the single most important criterion in investment allocation decisions and possibly even for individual financial survival.

Many believe that the American Dollar and the British Pound hold the highest monetary value among world currencies. While these are very strong and popular currencies, neither is the strongest in the world.

Is going about owning “physical” cryptocurrencies a little too technical for you but you would still like to be involved in the marketplace? Well, here’s the answer: buy an ETF that consists of companies involved in the sector but without the associated risk of self-custody within a digital wallet.

The seasonal trends of the U.S. dollar are probably important for you as an investor in stocks or bonds so let's take a look at the seasonal pattern of the U.S. Dollar Index and find out why it typically decline at the end of the year.

the top story in Wall Street Journal on September 19 was about the "once-in-a-generation rally" in the U.S. Dollar, and the stresses this was putting on the global financial system. This is true - but it isn't the whole truth.

Most of the major financial news outlets and many investors have come to rely on the movements of the U.S. Dollar Index as a daily barometer of the U.S. dollar's relative strength and weakness taking it on faith that the Dollar Index is the dollar – pure and simple. In reality, the Index offers a very distortive view of the movement of the dollar against the currencies that matter most. If anything, recent movements of the Index are a reflection of euro weakness rather than dollar strength. Words: 1019