The dollar is the longest-lived and the first and last pure FIAT reserve currency. Every reserve currency that came before it was pegged to something. The British pound sterling that preceded it was backed by gold. The dollar itself broke that pattern 55 years ago.
The unbacked experiment is visibly failing. Debt spiraling, sovereign bond yields at multi-decade highs, and central banks blatantly preparing for what comes next.
The world is choosing its stopgaps. Asia is choosing gold. Central banks in China, India, and across Asia have been accumulating it at a record pace for years.
What will the West choose?
What becomes native in the digital realm and is integrated into its capital markets. Over the next 30 years, we will see both absorb an enormous monetary premium as the fiat era runs out.
The reserve asset of the digital and AI era will be digital.
The unbacked experiment is visibly failing. Debt spiraling, sovereign bond yields at multi-decade highs, and central banks blatantly preparing for what comes next.
The world is choosing its stopgaps. Asia is choosing gold. Central banks in China, India, and across Asia have been accumulating it at a record pace for years.
What will the West choose?
What becomes native in the digital realm and is integrated into its capital markets. Over the next 30 years, we will see both absorb an enormous monetary premium as the fiat era runs out.
The reserve asset of the digital and AI era will be digital.