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RE: Hive Backed Dollar : The Amount In Stablecoins Needed To Power The Economy

in LeoFinance2 years ago

Many feel the US Dollar is going to collapse. The challenge with this view is that something has to replace it.

Most stablecoins are currently pegged to the USD. If the USD will collapse, then what will happen to the peg of the most of the stablecoins? What will happen to their value? If the USD would collapse, then why would anyone look at it as a unit of measure. What will be the measure? And why the USD would collapse?

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Is the ounce or meter going to collapse?

This is the point I am making. How does a unit of measure collapse if it is the standard most use?

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Because it is a currency, I still see its collapse as a possible scenario. See for example the Hungarian Pengő. My country used it between 1927 and 1946. The Hungarian Pengő suffered the most serious hyperinflation in the world history. A hyperinflation can kill the USD (and any other currency) too.

To start, there is no way to correlate the USD with anything from Venezuela and Hungary. They are two different world.

The USD is global in nature, backed by the two largest economies since Chian is basically dollarized at this point.

And viewing the USD as a currency is missing the major transformation. The reality is that most transactions in USD have no currency involved in them.

As stated the Repoo market is $5 trillion per day and there is very little USD actually in there.

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