The rapid decline of the US dollar has rekindled the dreams of “hyperbitcoization” among supporters of Bitcoin. But there is little evidence that the dying dollar means Bitcoin’s victory; And many that points to widespread chaos instead.
The dying dollar: lessons in the collapse of money
Fernando Nikolic, ex-VP in Blockstream and a veteran of Argentina financial disorders, warning against bitcoins wishing Fiat’s death:
“Bitcoins celebrating the collapse of the dollar do not understand what they are asking … It is not the release, it is your grandmother who eats cat food because his savings evaporate … The dying dollar does not win Bitcoin.”
During real collapse of money, basic necessities such as ammunition (not digital assets) become the only real value. Many Americans imagining a sudden transition to a bitcoin -based economy have no experience of real societal depression.
The reality, warns Nikolic, is much more chaotic than they think, and they would not really welcome the result of the dollar which died that they are considering.
A dark image across the United States points to a tense fiat system
The American housing market has never been so reaching. The median prices of houses have reached record heights in 2025, requiring twice as much income to buy a single -family house than in 2019.
The price / income ratio is at a record level, with ownership that is less achievable than ever, and millions of tenants spending between 30% and 50% of their income on housing.
The inadequacy between wages and the increase in housing costs means that most potential buyers are assessed, aggravating social stress.
Adding salt to injuries, US unemployment increased up to 4.3% in August 2025, the highest since the end of 2021, with wider underemployment at 8.1%. These figures mask the pain caused by a labor market which cannot keep the pace of inflation or stagnant real wages.
In a context of the increase in unemployment and climbing housing prices, the American national debt violated 37 billions of dollars in August 2025, more than double the size of the country’s total economic production.
Borrowing costs are increasing, payments of interest now exceeding defense expenses. The projections of the Congressional Budget Office indicate that the level of the debt reached this stage five years before the scheduled date, largely due to the pandemic loan and extended social expenditure.
Debt growth at $ 1 Billion every five months is not sustainable, risking upward pressure on rates and investment.
When Fiat fails, Bitcoin does not automatically win
The dollar index has dropped by more than 10% compared to the main currencies this year, the strongest decline since 1973. The decline is linked to unpredictable economic policies, protectionism and large tax reductions.
As the dollar decreases, import prices increase, eroding purchasing power for ordinary Americans, the worsening of inflation and the dissemination of family budgets. Depreciation puts pressure on housing, jobs and debt, aggravating systemic fragility.
All these striking metrics paint a lamentable picture of plumbing under the American economy, largely considered as a barometer for the rest of the world. If, no doubt, one of the strongest currencies in the world is under pressure, what does it spell for the entire Fiat system?
While many bitcoin advocates singing, “Bitcoin corrects this”, hyperbitcoization (the idea that people will transform into mass into bitcoin when Fiat fails) is a dangerous fantasy. He ignores history and social reality. When the currencies collapse, confidence evaporates and the basic survival needs replace abstract ideals.
The testimony of Nikolic, anchored in the collapse of the Argentina Fiat, exposes the hopes of “liberation” as naive: collapse means poverty, instability and suffering.
Financial chaos strikes the latest vulnerable, because social security nets and market standards are disintegrated. Bitcoin can offer an alternative to the Fiat Inflationist, but the dying dollar will not bring freedom, but mostly disaster and misery.
