Been trading both forex and crypto for years now. Watched Bitcoin hit crazy highs and crash hard multiple times.
Still can’t figure out if we’re actually moving toward crypto replacing fiat long-term or if traditional currencies will always dominate global trade.
Maybe in 50 years but governments won’t give up control easily. Dollar has strong backing.
Crypto won’t replace the dollar completely but it’s definitely carving out its own space. I’ve been trading both for years and what I see is crypto becoming more of a hedge asset.
The dollar’s stability in forex pairs is something crypto can’t match yet. Too much volatility for everyday transactions. But institutions are starting to hold Bitcoin on their balance sheets which wasn’t happening 5 years ago.
Think it’ll be more like gold - valuable store of wealth that exists alongside traditional currencies rather than replacing them. The infrastructure just isn’t there for full replacement and probably never will be.
Trading both has shown me that crypto works better as an alternative rather than a replacement.
The dollar’s liquidity in forex markets is something crypto still can’t touch. When you need to move serious money quickly across borders for business, USD pairs are reliable.
Crypto might grab more market share but replacing the dollar means convincing every country to abandon their current system. That’s not happening anytime soon.
Never fully replace it. The dollar dominates because central banks hold massive reserves and oil trades in USD. That network effect is too strong. Crypto volatility kills its currency function. Bitcoin swings 5% daily while USD/EUR moves 0.5%. No business wants their cash flow jumping around like that. What crypto does well is bypass banking systems and store value outside government control. It becomes another asset class, not a replacement currency. The dollar’s role in global trade runs too deep to disappear.
Dollar stays king crypto just gets bigger alongside it.