The new alternative financial system, created on the basis of cryptocurrencies, is increasingly assimilating into the world of traditional finance, starting to seize its share from existing systems. However, this assimilation is unlike what everyone had previously imagined. Dreams about how the world will massively abandon fiat money and switch to cryptocurrencies have crashed into the same harsh reality in which the entire world monetary system lives: everyone wants dollars.
What does the dollar and the growing use of cryptocurrencies mean for cryptocurrencies?
There is an argument that deflation caused by the dollar will be harmful to cryptocurrencies, because the world perceives it as a high-risk asset. May be so. But perhaps the dollar will lead to the widespread depreciation of other national currencies, and although the dollar belongs to safe haven assets, most likely, in this situation there will be an increased demand for hedging against fiat currencies in general.
If there is dollar inflation, it can be expected that cryptocurrencies will be used as an accessible bridge to non-depreciable assets (cryptocurrencies).