4 ms·

I agree with you except for one thing: I think that no single currency will replace the dollar. The replacement will be a basket of currencies that also include

I agree with you except for one thing: I think that no single currency will replace the dollar. The replacement will be a basket of currencies that also includes the dollar. It seems crazy, I think, to replace one single reserve currency with another. A basket of currencies makes the most sense.

vsareto 6y ago
Wouldn't the basket of currencies just end up being traded as a single thing? Finance loves abstraction just as much as tech it seems.
- pphysch 6y ago
  Likely, but that sort of framework makes it easier to adjust the relative share of each component currency over time. If only as a separate, more popular bundle.
- nopzor 6y ago
  the basket can be adjusted, just like eg. the s&p 500 index.
headmelted 6y ago
Does it though? Logically that's what we should be doing now (and it sort of is - all of those currencies are freely tradeable on the markets today), and yet we still use the dollar as the base currency for almost everything. We don't have to, but we do, because otherwise you don't have a single, comparable figure you can place on anything. I get that not having a single figure is entirely the point, but even now, I don't think of bitcoin in terms of what it costs in pounds (even though UK here), because that's not how we collectively value it for comparison's sake. I think the US would have to destroy its' economy entirely (or enter a period of genuine hyperinflation) before we move away from it as a base currency.