Donald Trump's return to the public spotlight after his legal troubles have presented a prediction for the future of the US Dollar's dominance in the global market. With claims that the collapse of the US Dollar is imminent and that it will lose it's titular position as the world reserve currency, Trump has stirred up both criticism and curiosity about what the future may have in store for the US currency system.

Inflation in the US has been steadily climbing since 2020, reaching its highest point in June 2022 with inflation topping out at 9.1%. This led to the Federal Reserve taking action, tightly raising interest rates which had been previously kept low by the Trump administration. This has led to disagreement between both political parties as to the cause of these issues. Republican Senator Cynthia Lummis has stated her belief that both parties can hold equal responsibility in this issue.

Regarding cryptocurrency, the former president's view is distinctly negative, calling them 'scams' and believing they will "take the edge off the dollar". Despite this, he and his wife Melania have been profiting from the sale of Non-Fungible Tokens (NFTs) which have been growing in popularity recently.

It is difficult to predict whether Trump's words are fact or fiction. It is certainly true that US inflation is a cause for concern and that many critics have cited overspending from the Biden administration as a factor here. It is possible that the US Dollar could lose its world reserve currency status in the coming years, but it is hard to believe that bitcoin or other digital currencies will be taking its place anytime soon. Time will tell to see how this all plays out over the long term, but as with all predictions, it is important to take any prophecies with a grain of salt.



Other News from Today