In 1913, the Federal Reserve was established. Following two world wars, global wealth concentrated in the United States, making it the most powerful country in the world. Since then, backed by the U.S. dollar exchange rate mechanism, the United States has promoted free trade globally.
However, the good times did not last long. Soon, the Vietnam War forced the dollar to abandon the gold standard, marking the first setback for the U.S. dollar.
After giving up the gold standard, the issuance of the U.S. dollar was no longer restricted. The over-issuance of dollars brought about a massive problem: how to store the vast amount of dollars?
Since the operation of the U.S. dollar is inseparable from international large-scale production, the United States had to import a significant number of industrial products. In this context, emerging industrialized nations began exploiting loopholes in the international exchange rate system to siphon wealth stored in the United States. This development signaled the complete collapse of America's existing wealth storage mechanism.
At its core, Bitcoin is just a proxy for the U.S. dollar. If the U.S. dollar system collapses, can the Bitcoin system survive?