it depends. The faster it goes, the more violent and shitty for society.

Also the better for those who only care about NgU. Then again, NgU doesn't do you much good if you and your family wind up enslaved by some local warband, after multiple family member kidnappings and extortions, the police don't answer the phone (or maybe they are the ones doing the extortions), and having your wealth expropriated of course.

A slow collapse is best, imho. Gives everyone time to process what is happening and reallocate, so only the most stubborn dollar diehards are ruined.

For color on the fast collapse scenario, just look at history.

"When money dies" by adam furgeson is good.

https://en.wikipedia.org/wiki/The_World_of_Yesterday by stefan zweig may also be a good guide.

Also check out Berlin Diaries by christopher isherwood. This was the novel that inspired the musical Cabaret.

IMHO it will be a slow collapse. This basically looks like... what we are already currently experiencing. Give it another 12-15 years.

The slow collapse is sometimes called hyperbitcoinization, to distintuish it from hyperinflation. Hyperbitcoinization ain't that bad.

"Hyperbitcoinization will not disrupt the economy to nearly the same degree as hyperinflation. The currency is the instrument of the division of labor, and hyperinflation makes it unreliable and forces people to use worse alternatives. In a hyperbitcoinization event, people switch from a fundamentally inferior currency to a superior one, whereas in a hyperinflationary event people will only switch to a new currency once the old currency becomes worse than the next best alternative, such as gold or detergent. Hyperbitcoinization should be accompanied by a rapid improvement in productivity and wealth."

The unhappy path (hyperinflation) happens if society determines to oppress bitcoin by driving it underground and imposing capital controls and censorship, and other dystopian bullshit. You still get hyperbitcoinization eventually but it's a bit more grim along the way.

Comparisons to Zimbabwe and Weimar Germany are apples-oranges oversimplifications and don't resemble the situation even a little bit... there's at least a few people here with me coming around to the idea that Bitcoinization can't happen until Dollariztion first destroys OTHER fiats.

What we're seeing today is the opposite of dollar collapse: the dollar wrecking ball.

Bitcoin isn't a life-raft for dollar collapse, but to save the US national security state for when the dollar becomes the last fiat standing.

Too strong of a dollar is what hollowed out the US economy, call it the Triffin Dilemma or Dutch Disease, the US does not benefit from having the world reserve currency... quite the opposite. NatSec people know this, Trump is an economist and knows this, JD Vance even used this terminology as Senator.

So the dollar isn't collapsing, it's restructuring into something they can export without destroying the country. The administration and bag-men/operators like Saylor they put into the spotlight are straight up telling us that, and why Bitcoin and Stablecoinization of the dollar are at the heart of those operations.

For a really interesting, recent, first-person look at how hyperinflation in a country, check out this book:

There's some very interesting stories in it. One that really struck me was how ANY group (cricket club, alumni organization, church) became a survival mechanism, in that people that were trusted and connected traded together, and did favors for one another. Loners suffered.

Though possibly the loners, having fewer social ties, left the country early, and were the luckiest of the bunch.

An interesting aside here - I've read this book a couple times, and thought I'd get a few good stories from it, that I could include here, where my memory was a little fuzzy. So, I asked AI for some sample stories.

WOW does AI lie! All kinds of stories were presented, but not one of them came from the book. I would have thought AI could do this kind of thing easily, but no.

"Tether"-ed to the Titanic

Yes.

Unlike physical notes and coinage, Tether works just as well when you need 8,000 of them for a burger as $8 of them.

Though when that time comes, if a typical person can still justify the expenditure for a burger, I wouldn't know.

USD, the strongest fiat currency has been going down for a while.

The places where hyperinflation is happening, the people just try to use a better money. In Venezuela, per example, every one used USD as store of value and whenever they can, the use Bs as a payment method.

So, maybe in a not too distance future, north Americans will use BTC as store of value and USD as the payment method until no one wants to accept it (USD)...and eventually btc will be use for both purposes.

The Mandibles

Think it could turn into a real shit show real quick and a lot of wide spread pain

It's already collapsing. It's going to be a long, slow, whimpering death. One where all of us frogs slowly boil until we die.

The dollar won’t vanish overnight, but trust in it will erode fast. Expect capital controls, price freezes, and a “new dollar” rebrand. Meanwhile, Bitcoin will be there, not needing a bailout

As it's created Outta thin air, it'll disappear into thin air within the same time frame in which it has become so dominating.

There would be a controlled demolition where people are slowly given out privileges they used to have, with plenty of excuses for social control.

It can only happen when an alternative for international trade settlement emerges.

China is already settling international trade payments on its own Yuan denominated alternative systems. Its been doing this for Iran and N.Korea for decades and more recently Russia.

China today dominates global trade in manufactured goods and commodities and so naturally will come to dominate global trade payments- this is how it has always been since the Roman Empire.

Tough luck for US exceptionalists stuck in their 1990s delusions of invincibility.

But Trump can clearly see the writing on the wall threatening BRICS members not to join the exodus from USD hegemony.

Trump is trying to pivot the US to savage some of its wealth power and privilege...just as Britain did when hegemony shifted to the US post WW2.

Some use of Bitcoin could be an option.

A dollar collapse wouldn’t mean the world stops, but it would be messy. Prices would skyrocket, paychecks wouldn’t buy much, and trust in the system would fade fast. The government might try tricks like resetting the currency or pushing a new digital dollar. If the dollar falls as the global reserve, countries would scramble for alternatives like gold or Bitcoin. Trade would get rough, shortages could happen, and civil unrest might follow. It wouldn’t be instant doom, but a slow, painful shift where people adapt to a new reality.

After a couple of prompts into perplexity:

A major dollar crisis would likely follow the playbook of the 2008 financial crisis, which involved globally coordinated bailouts to stabilize the U.S. dollar and the broader financial system. Here's how such a scenario might unfold:

Key Elements of a Dollar Crisis Bailout

Massive Liquidity Injection:

Central banks worldwide, led by the Federal Reserve, would inject trillions of dollars into the financial system to stabilize markets. For example, during the 2008 crisis, central banks purchased $2.5 trillion in government debt and troubled private assets, marking the largest monetary policy action in history.

Government-Led Rescue Programs:

The U.S. government would likely enact emergency legislation similar to the Emergency Economic Stabilization Act of 2008, which created the $700 billion Troubled Asset Relief Program (TARP). This program was designed to purchase toxic assets and inject capital into failing financial institutions.

Global Coordination:

International cooperation would be essential to prevent contagion. In 2008, the U.S. pressured other countries to implement similar bailout plans, ensuring global financial stability.

Central Bank Actions:

The Federal Reserve would act as a "lender of last resort," providing liquidity through quantitative easing (QE) and other measures such as purchasing Treasury bonds and mortgage-backed securities. During 2008, these actions restored confidence in credit markets and prevented a deflationary spiral.

Currency Stabilization:

A dollar crisis could lead to significant devaluation against other currencies and commodities like gold. Coordinated interventions in foreign exchange markets might be necessary to stabilize the dollar's value.

Investor Confidence Measures:

Governments would focus on restoring investor confidence by removing impaired assets from financial institutions' balance sheets, reducing uncertainty, and encouraging lending. These steps were crucial in 2008 to prevent further economic contraction.

Potential Outcomes

Short-Term Stability: Immediate actions would likely prevent a collapse of the global financial system.

Long-Term Risks: Such interventions often lead to increased national debt and inflationary pressures, requiring careful management in subsequent years.

Global Implications: Given the dollar's role as the world's reserve currency, its stabilization would remain a top priority for all major economies.

In summary, a major dollar crisis would trigger globally coordinated efforts resembling those during the 2008 financial crisis, involving liquidity injections, government bailouts, and international cooperation to restore stability.

And, as this is Stacker News, I couldn't resist a follow up Bitcoin related prompt:

Historical patterns indeed suggest that Bitcoin's price could initially collapse but later soar in response to a major economic crisis. This pattern has been observed in several instances:

During the COVID-19 pandemic in 2020, Bitcoin initially crashed along with other assets but then experienced a dramatic recovery. The pandemic-induced economic uncertainty and large-scale government stimulus measures led many investors to view Bitcoin as a hedge against inflation and currency devaluation.

Bitcoin has shown a tendency to act as a safe haven during national economic crises. Research indicates that when a country experiences major currency devaluation, there's often a spike in Bitcoin trading volume as locals seek safe assets.

The 2018-2020 period demonstrated Bitcoin's resilience. After a significant price drop in 2018, Bitcoin recovered strongly in 2020, driven by macroeconomic factors and growing institutional interest.

However, it's important to note that Bitcoin doesn't always act as a safe haven. During the initial stages of the COVID-19 pandemic, Bitcoin trading actually declined across all countries, suggesting it was still viewed as a risky asset in times of global crisis.

The current market (as of March 2025) has seen Bitcoin drop from its all-time high of $109,114 in January to around $82,600, a 24% decrease. This aligns with the pattern of initial decline during economic uncertainty.

Given these historical trends, it's plausible that Bitcoin could follow a similar pattern in future crises: an initial sharp decline followed by a significant recovery as investors seek alternative stores of value. However, the cryptocurrency market remains highly volatile and subject to various factors, including regulatory changes, technological advancements, and shifts in investor sentiment.

I think that too much is missing, to see that dream that people have about the collapse of the dollar.

The USD is the world reference currency, as is the US. In order for that to stop so, something would only have to happen, "which is the US disappears" and that is currently complicated.

Its dollar although it is a scam, the global financial system continues to govern, and now with the adoption of stable currencies, a strong demand for their junk bonds is guaranteed, and which in turn floods the world of dollars more but this time in a digital form and with the USDT or USDC label. which in turn continues to strengthen the first thing I mentioned, "World reference currency"

And now that they plan to create a Bitcoin reserve so that at the same time this gives greater credibility to the strength or stability of the dollar. I think it is something that injects more life to its system built around the dollar and extends the possibility of continuing to exist.

There are a lot of powerful forces tied to the dollar. Too big to fail, but if it does, it’s gonna be a disaster. The real question is… for who?