The US dollar is experiencing a silent decline, but most people are still relying on old reserves.

As someone who has been observing financial markets for a long time, I often ponder a question: how much longer can the current system of the dollar last? Frankly, the answer might be more pessimistic than you think. The decline of dollar hegemony is a foregone conclusion; the only question is the timeline. And all of this has been crafted by the United States itself.

**Why is the dollar on a downward slope? Three fundamental contradictions**

First is the economic "Triffin dilemma." The dollar must serve two roles simultaneously: as a provider of liquidity for global trade and reserves, and as a guardian of currency stability. But these two goals are inherently conflicting. The US exports dollars through persistent trade deficits, resulting in continuous external debt accumulation. By 2025, US federal debt will have surpassed $38 trillion. Just the interest payments alone are an astronomical figure each year.

Second is the politicization of the dollar. Freezing foreign exchange reserves and wielding tariffs—these actions fundamentally undermine the dollar’s status as a "safe haven." Leaders around the world are beginning to seriously consider: what if I also become the next target of sanctions? This uncertainty is driving global reserve diversification.

The third and more painful issue: the Federal Reserve is losing its independence. Under political pressure, printing money has become the go-to solution for all problems. This overextension of the future has market concerns that the US might be heading down the path of "fiscal deficit monetization."

**The data is right there**

These are not just theories; numbers speak for themselves. The dollar index fluctuates, and central banks worldwide are reducing dollar reserves. Meanwhile, decentralized assets like Bitcoin are attracting more and more institutional and individual investors. This is no coincidence; it’s the market voting with its feet—seeking hedging tools against the dollar’s decline.