Check out this piece about the dollar and its demise. The article helps put things in perspective.Besides, it gives you a nice “techie” analogy which I thought was interesting.
One economist likens it to using the Windows operating system for your computer; sure, it’s expensive and has bugs, and sure there are freeware alternatives, but it’s more convenient to use Windows because ‘everyone else is using it’. And like Windows, reserve currencies enjoy an ‘incumbency advantage’: unless a new currency can demonstrate that is offers vastly superior benefits, it cannot dislodge the entrenched one….
The author summarizes saying…
All this is not to say the dollar won’t weaken in the short term; it will. And over time, as other economic powers rise and US’ share of the global economy shrinks, other reserve currencies could organically emerge.
But the only ones who are profiting from short-term volatility driven by market hysteria of a ‘dollar collapse’ are dollar bears and bullion bulls who are looking to make jackasses of us others.