Trillion-Dollar Debt Sparks Fear of US Dollar’s Collapse and the Flight to Bitcoin

• Paul firmly believes that the existence of the dollar is only temporary, similar to most fiat currencies in history. 
• During the second quarter of 2023, Bitcoin’s supremacy in the cryptocurrency market significantly increased.

Former US congressman Ron Paul predicts that the US dollar is on the verge of experiencing a significant decline due to the uncontrollable level of debt. In a recent discussion on his YouTube channel, Paul explains that central banks and even private individuals have been increasing their gold reserves due to diminishing confidence in the US dollar.

 As a constitutionalist, Paul firmly believes that the existence of the dollar is only temporary, similar to most fiat currencies in history. He points out that some individuals have been anticipating the eventual downfall of the dollar since the Bretton Woods agreement in 1944, which established a new monetary system centered around the dollar involving the US, Canada, Western Europe, Australia, and Japan.

He stated,

“The one thing I feel certain about [is]the dollar will not last indefinitely. It’s been around a lot longer than it has deserved. Like right now it’s anticipated in a very short period of time the interest on the national debt, the federal debt it’s going to be a trillion dollars. That used to be a lot of money. But at the rate it’s going, just the interest is going to be many many trillions of dollars.”

The renowned libertarian figure asserts that although the transition to a new, superior currency will be lengthy and intricate, there has already been a shift in attitudes toward the dollar.

Bitcoin’s Dominance Skyrockets in Q2 Amidst Altcoin Decline

During the second quarter of 2023, Bitcoin’s supremacy in the cryptocurrency market significantly increased, while altcoins faced a challenging period of decline. CoinGecko’s industry report, published on July 18, revealed that Bitcoin and Ethereum strengthened their positions, building upon the gains they achieved in the previous quarter.

Due to struggles experienced by altcoins, Bitcoin’s overall market dominance surged to a two-year high of just over 52% in late June. However, it recently dipped below 50% due to an altcoin rally driven by Ripple’s partial court victory. The court ruling in favor of Ripple led to a surge in XRP’s price, briefly boosting altcoin sentiment.

Despite the initial gains made by several altcoins following the XRP pump, most eventually lost those gains, bringing the market back to a state similar to before the court ruling. CoinGecko reported that the total market cap remained relatively stable at $1.2 trillion throughout the quarter, with no significant changes as the third quarter began.

Bitcoin emerged as the standout performer of the quarter, outperforming other major cryptocurrencies with a gain of almost 7%. However, BTC’s average daily trading volume decreased by 58.7% compared to the previous quarter.

The report emphasized that despite a strong showing in Q1, Bitcoin’s performance surpassed most major asset classes in Q2, trailing only behind the NASDAQ and S&P500. It’s resilience and relatively stable performance continued solidifying its position as the dominant player in the crypto market.

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