I give credit to the crypto maximalists and gold bugs for pointing out that fiat currencies are not perfect. But when accounting for the interest generated, they prove to be remarkably resilient stores of value. Gold, crypto, and other alternative assets have their place, but the narrative that they are vastly superior to the dollar as a long-term store of value is simply not supported by historical data.

I credit the zero-interest rate environment for sparking this discussion. Before the era of zero interest rates, people got a good rate of return on their savings accounts and because of this, they did not worry about their money getting eroded by inflation. Because of the zero-interest rate environment, households got essentially nothing on their savings and meanwhile, prices for goods kept going higher and higher.

When interest rates start to rebound higher and households start getting better returns on their savings accounts, I’m curious to see if more people will still think the dollar is a bad store of value.

Learn more on why the US Dollar is a better store of value than what the common opinion of it is in this article: https://dissectingthemarkets.substack.com/p/the-us-dollar-is-better-at-holding