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The rapid decline of the US dollar has rekindled Bitcoin advocates’ dream of “super Bitcoinization”.
But there is little evidence that the demise of the dollar means a victory for Bitcoin.Instead, there are a lot of signs pointing to the general social chaos.
The US dollar died: lessons from currency collapse
Fernando Nickridge, former Blockstream vice president and experienced financial turmoil in Argentina, warned that Bitcoin believers who are looking forward to the extinction of fiat currency are not aware of what they are looking forward to.
“Bitcoin players celebrating the collapse of the dollar have no idea what they are asking for… This is not liberation, but your grandmother has to eat cat food because of her savings evaporates…The demise of the US dollar does not mean that Bitcoin wins.“
In a time of real currency collapse, basic necessities such as water and food (rather than digital assets) will become the only thing with real value.
Many Americans who fantasize about a sudden transition to the Bitcoin economic system have never experienced a real social collapse.
Nickridge warned that reality is far more chaotic than they thought, and they don’t actually welcome the expected dollar-death ending.
The bleak scene across the United States points to the stressful fiat currency system
The U.S. housing market has never been so high.Median single-family home prices hit record highs in 2025, with revenue required twice as much as in 2019.
The house price-to-income ratio reached an all-time high, the housing ownership rate dropped to an all-time low, and millions of renters spent 30% to 50% of their income on rent.
The imbalance between wages and rising housing costs means that most potential home buyers are excluded from the market,Social pressure continues to intensify.
To make matters worse, the U.S. unemployment rate rose slightly to 4.3% in August 2025, the highest level since the end of 2021, with the wider underemployment rate reaching 8.1%.
These figures mask the pain caused by the labor market’s inability to keep up with inflation or the stagnation of real wages.
Against the backdrop of rising unemployment rates and rising housing prices, U.S. Treasury bonds exceeded $37 trillion in August 2025, more than twice the country’s total economic output.
The cost of borrowing continues to rise, and the interest expenditure on treasury bonds even exceeds defense expenditure.
The Congressional Budget Office expects debt levels to reach this milestone five years ahead of schedule due to the expansion of borrowing and social spending during the pandemic.
$1 trillion in debt growth every five monthsUnsustainable, may push up interest rates and squeeze investment space.
Bitcoin won’t automatically win when fiat currency fails
The dollar index fell by more than 10% against major currencies this year, marking its sharpest decline since 1973.This decline is linked to unpredictable economic policies, protectionism and expansionary tax cuts.
As the dollar depreciates, import prices rise, purchasing power of ordinary Americans declines, inflation deteriorates, and household budgets are tight.
Devaluation further puts pressure on housing, employment and debt, exacerbating system vulnerability.
All these serious indicators paint a bleak picture of the foundations of the U.S. economy.andThe dollar is often seen as a barometer for other economies in the world.If the world’s most strong currencies are under pressure, what does this mean for the entire fiat currency system?
Although many Bitcoin advocates chant “Bitcoin can solve this problem”,butSuper Bitcoinization (i.e., the idea that people will turn to Bitcoin on a large scale when fiat currency fails) is a dangerous fantasy.
This view ignores historical and social reality.When currency collapses, trust evaporates and basic survival needs will replace abstract ideals.
Nickridge, rooted in the Argentina’s fiat currency collapse experience, testified that the hope of so-called “liberation” is naive:Collapse only means poverty, turmoil and suffering.
When social safety nets and market norms collapse, financial chaos hit vulnerable groups the worst.
Bitcoin may provide an alternative to inflation fiat currency, but the demise of the US dollar brings not freedom, but disaster and pain for most people.
