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 The US dollar hegemony is now changing as the world financial orders continue to explore alternatives in the…

The US dollar hegemony is now changing as the world financial orders continue to explore alternatives in the wake of a declining USD. The American currency is down significantly, shedding significant value since 1950, with its purchasing power metrics down to an all-time low. With extreme dollar weaponization, sanctions, and abuse, the world is now adopting anti-dollar drives, pushing the currency down to a new low. Is storing wealth in USD beneficial for investors in 2025? One analytical firm says no, and here’s why USD could hurt investors significantly in the long haul.

Also Read: PBOC Pushes e-Yuan Hub to Challenge US Dollar’s Global Power

The Dollar’s Purchasing Power Is Down To An All-New Low.

USD ON FIRE
Source: Watcher Guru

According to a recent post by River, a “client-first Bitcoin-only financial firm” on X, investing or storing wealth in dollars is jeopardizing investor sentiment and the totality of the investment’s worth. For instance, River took to X to post an elaborate thread explaining how saving in dollars is sabotaging one’s wealth, as the greenback’s worth and value have been depreciating 6% on a yearly basis.

“Saving in dollars is hurting you. Dollars lose value at an average of 6% per year!”

The post reiterated how holding money in cash may be one’s long-term vision of ramping up their wealth prospects. Furthermore, the platform stated how the American currency has been designed to fall, as constant inflation “quietly taxes everyone’s holding dollars.”

“Your savings account pays you less than 1% interest. While money printing has grown the supply of dollars by over 6% every year since 2000. You think holding cash is safe? The damage quietly compounds. The dollar isn’t failing you by accident; it’s designed that way. Inflation quietly taxes everyone holding dollars. It allows governments to spend more and silently shrink their debt.”

In addition to this, the USD’s purchasing power has shrunk dramatically since 1913. The greenback has lost 97% of its value since then, weakening due to rising external forces, primarily rising inflation.

What Is The Solution?

Per River’s recent post, investors should explore alternate assets like Bitcoin to safeguard their investments and help them grow at a rapid pace. The firm shared that investing in BTC is more lucrative than investing in stocks, as it deemed these as assets that may be affected by inflation.

“So, what should you do instead? Many investors turn to stocks and real estate. Guided by complex portfolios and financial advisors who are desperate to outperform inflation. But there’s a simpler solution…. Bitcoin provides what dollars can’t: A limited supply that can’t be increased. You don’t need to rely on trading strategies or complexity. Instead, steady accumulation can have a big impact.”

Also Read: De-Dollarization Necessary: Unveiling The Risks Of A Strong US Dollar