Would the US dollar remain the undisputed master on the world market?

Billionaire Chamath Palihapitiya spoke about the devaluation of the dollar in a new episode of the All-In Podcast. He indicated that this situation is not bad news for the United States. On the contrary, the country could benefit from it and see its currency more adopted throughout the world.

Countries do not want to have their own currency

Like some analysts, billionaire Chamath Palihapitiya seems to oppose the announced end of the dollar. He believes that the devaluation of the US dollar actually stimulates the US economy. He explained that this situation allows other countries to acquire American products at low prices. He stated : “The position of the US dollar has not changed. You have to remember that a lot of these foreign governments, 187 or whatever the number of countries outside of the United States, are dependent on the US dollar. They don’t want to own their own currency“.

For the venture capitalist billionaire, the devaluation of the dollar increases the purchasing power of foreigners. Also, thisbrings the balance of power back to the United States“. This is due to the fact that “all these countries suddenly have the opportunity to import a little cheaper“. With this system, the economies of foreign states are doing slightly better, “but the US dollar continues to do well“.

Palihapitiya highlighted : “So there is a complex set of interactions that are all relative“. It is in this context that the venture capitalist argues that the supremacy of the US dollar remains unchanged.

Palihapitiya invites to invest in risky assets

Palihapitiya argued that the US government is unlikely to stray from a path of long-term monetary weakening. He explained : “We will reinflate the money supply over the long term because it is the only sustainable way for politicians to get elected and re-elected.“.

In this context, the billionaire believes that “the best thing to do is to hold risky assets“. It thus encourages consumers to invest in assets like stocks and cryptos.

Chamath Palihapitiya’s remarks indicate that cryptos can take advantage of the depreciation of the US dollar to increase their adoption around the world. However, it remains difficult to determine whether they will succeed in replacing the fiat currency. For some, cryptos have none of the functions of money.