Imagine a day when Bitcoin and Dogecoin replace the dollar in the US. The president suddenly tweets a shocking message: "Goodbye Federal Reserve!", while Elon Musk, clutching a stuffed Dogecoin, solemnly declares: "A new financial era has arrived!"
Sounds like a sci-fi scenario, but this idea suddenly becomes alarming as Donald Trump stirs back to the White House and Elon Musk quietly manipulates behind the scenes.
Elon's ideas, Trump's actions.
Donald Trump, known for his bold moves, seems to be aiming to turn the United States into the "global cryptocurrency capital." His administration is even considering building a "Bitcoin reserve" to replace gold in the national reserve system.
And Elon Musk? Currently, he heads an impressive new agency called the "Department of Government Efficiency" (DOGE). This name is not coincidental. Elon has become such a powerful figure that he recently influenced Trump's decision to veto the government budget, according to Bloomberg.
As soon as Trump is re-elected, the cryptocurrency market will explode like never before. Bitcoin's price skyrocketed to $108,000 on December 17, more than doubling since the beginning of the year. Dogecoin also soared, increasing by 152% and currently stabilizing around $0.36.
Elon Musk's tweets are no longer just humorous memes but have become actual policy suggestions. Since Dogecoin became the symbol of the agency dedicated to efficiency management, billions of dollars of investment have poured into DOGE futures contracts. Open interest (OI) surged from 7 billion to 8.3 billion tokens within just a few weeks.
However, not everything is rosy. The crypto market is caught in a whirlwind of extreme volatility. Bitcoin's price fluctuates wildly, even more chaotically than the Wall Street financial crisis of 2009. A single statement from Federal Reserve Chairman Jerome Powell is enough to send Bitcoin's price plummeting from $106,000 to $95,800 in an instant.
Imagine if cryptocurrency actually became legal tender in the United States.
Imagine a world where Bitcoin and Dogecoin officially replace the US dollar. This event would not only shake the global economy but also put an end to the dollar's dominant position – the symbol of America's financial power.
Countries and corporations holding large amounts of dollars would panic and sell off, creating a wave of instability across markets. Meanwhile, Bitcoin and Dogecoin, which were not designed to bear the role of national currency, would face pressure to stabilize their value – something nearly impossible when a single fluctuation can cause Bitcoin to rise or fall by thousands of dollars within hours.
Inflation will enter an entirely new era. Bitcoin, with a fixed supply of 21 million coins, could end the era of "infinite money printing," while Dogecoin, despite its steady issuance rate, continues to create new coins. These mechanisms will change the way we understand inflation, but the price to pay will be chaos in daily life.
American citizens will face extreme price volatility, from wages, rents, to the cost of basic goods. Businesses will struggle with pricing, while the government will be unable to address tax collection on a decentralized basis.
Cyberattacks will also become a greater threat than ever. Cryptocurrency thefts worth billions of dollars, such as those recently carried out by North Korea, will continue to rise, threatening the entire new financial system.
Moreover, the use of cryptocurrency in daily life is fraught with inconvenience. Imagine buying a cup of coffee with Dogecoin – before you have a chance to drink it, its value could double or be cut in half. In this context, the US dollar may still be used as a "ghost currency" to convert value, similar to how unstable economies rely on the dollar as an unofficial crutch.
But every revolution is not about convenience. Major changes always come with disruption, and if this scenario happens, it would be a real storm sweeping away all traditional economic principles.
