I don’t say the dollar will collapse because I am a dooms day person or someone with a powerful imagination. Personally, i’m looking at the technical conditions that have been bringing the US to its knees.
Over the last couple of months, a large bearish histogram trend has been forming on the US dollar. Now does this mean all out collapse? Maybe it doesn’t and the DXY gets saved at around the $91 level. However, if you see a break through that I start to worry a bit about where it could go. Warren Buffet’s famous line is to buy distressed assets and I have followed that during my investment career so far. However…
Most people like to sit in their seat and play hot potato until they get burnt. You don’t want to be this person. I think that you want to be the guy making the money from the collapse. Here is how I think it will play out.
Typically, the US dollar and stocks are negatively correlated so as one moves down the other moves up. This could very well be the reason stocks have gone up a bunch this year. I believe the stock market will move significantly higher only to crash if people lose faith in the dollar.
Once again none of this may happen but I do know we are in a large bearish trend on the dollar. The key behind any currency is consumer confidence. If people lose the confidence then the currency becomes worthless. Hopefully we don’t get to this point but I felt the need to share to protect whoever I can during this period.
What this means for Ethereum?
The possibility of cryptocurrencies taking over the scene during this crash is more real than ever. Ethereum is creating an ecosystem for developers to help the exchange of money and services all around the world.
This new age of digital technology could prove to replace the current systems we have in place. It is disruptive in nature and I’m excited to see what the future holds. Now it is nearly impossible to predict the future but being hedged right for the most likely outcome is what separates good investors from the bad.