Holding assets in dollar makes little sense for most people on the planet, and when these people become richer, it makes sense they will use their own currencies. With them, their companies. With those, their governments.
The EUR, despite current instability, and the Chinese Y have good chances.
> Holding assets in dollar makes little sense for most people on the planet, and when these people become richer, it makes sense they will use their own currencies.
You have a lot of misplaced faith in foreign central banks. A lot of foreigners absolutely do not trust their central banks, some even to the point of using the US dollar in their day-to-day transactions (Cambodia, various African nations, etc.)
If you're in the position where you don't trust your own central bank, why would you trust the Bank of China instead of the Federal Reserve? It's been around a lot less time and does not have the political independence the Fed does.
The dollar is going to be dominant for the rest of our lives IMO.
Well, for many people it makes sense to trust their own central bank more than a foreign one, especially when their nation is stable.
No matter what happens, I can pay my taxes and get food at the bakery in Euro. Even if the Euro crashes.
But if I hold Dollar, my government and bakery won’t take Dollar, so I’d have to convert – and lose or make money based on the exchange rate every time.
It’s the same reason why bitcoin isn’t effectively used: If you have to exchange currencies every time you try to buy something, the currency is worthless to you.
And for a billion chinese people, the Yuan is going to be the currency of choice. For 500 million europeans, the Euro is the currency of choice.
But only the US and a handful of instable african or island nations use the Dollar, all combined still less people.
For private holdings, the Dollar is going to lose power. (In fact, it has lost the majority of private holdings long ago)
Holding assets in dollar makes little sense for most people on the planet, and when these people become richer, it makes sense they will use their own currencies. With them, their companies. With those, their governments.
The EUR, despite current instability, and the Chinese Y have good chances.