Former Blockstream VP Fernando Nikolic cautions that Bitcoiners who celebrate the dollar dying don’t understand what they’re asking for.
Cover art/illustration via CryptoSlate. Image includes combined content which may include AI-generated content.
The rapid decline of the U.S. dollar has reignited dreams of “hyperbitcoinization” among Bitcoin proponents. But there is little evidence that the dollar dying means Bitcoin’s victory; and plenty that points toward widespread chaos instead.
Fernando Nikolic, ex-VP at Blockstream and a veteran of Argentina’s financial turmoil, cautions against Bitcoiners wishing for the death of fiat:
“Bitcoiners celebrating dollar collapse don’t understand what they’re asking for… It’s not liberation, it’s your grandmother eating cat food because her savings evaporated… The dollar dying doesn’t make Bitcoin win.”
In times of true currency collapse, basic necessities like ammunition (not digital assets) become the only thing of real value. Many Americans imagining a sudden transition to a Bitcoin-based economy have no experience of genuine societal breakdown.
The reality, Nikolic warns, is far more chaotic than they realize, and they would not actually welcome the outcome of the dollar dying they’re envisioning.
The American housing market has never been more out of reach. Median home prices hit record highs in 2025, requiring twice as much income to buy a single-family home as in 2019.
The price-to-income ratio is at an all-time high, with ownership less attainable than ever, and millions of renters spending between 30% and 50% of their income on housing.
The mismatch between wages and rising housing costs means most would-be buyers are priced out, worsening social stress.
Adding salt to the wounds, U.S. unemployment edged up to 4.3% in August 2025, the highest since late 2021, with broader underemployment at 8.1%. These figures mask the pain caused by a labor market that can’t keep pace with inflation or stagnant real wages.
Against a backdrop of rising unemployment and climbing house prices, the U.S. national debt breached $37 trillion in August 2025, more than double the size of the nation’s total economic output.
Borrowing costs are rising, with interest payments now surpassing even defense spending. Congressional Budget Office projections say the debt level reached this milestone five years ahead of schedule, largely due to pandemic borrowing and expanded social spending.
Debt growth at $1 trillion every five months is unsustainable, risking upward pressure on rates and crowding out investment.
The dollar index dropped more than 10% against major currencies this year, the steepest decline since 1973. The drop is linked to unpredictable economic policies, protectionism, and expansive tax cuts.
As the dollar falls, import prices rise, eroding purchasing power for ordinary Americans, worsening inflation, and straining family budgets. The depreciation further pressures housing, jobs, and debt, compounding systemic fragility.
All these stark metrics paint a dismal picture of the plumbing beneath the American economy, broadly considered a barometer for the rest of the world. If, arguably, one of the world’s strongest currencies is under strain, what does that spell for the entire fiat system?
While many Bitcoin advocates chant, “Bitcoin fixes this,” hyperbitcoinization (the idea that people will turn en masse to Bitcoin when fiat fails) is a dangerous fantasy. It ignores history and social reality. When currencies collapse, trust evaporates, and basic survival needs replace abstract ideals.
Nikolic’s testimony, rooted in Argentina’s fiat collapse, exposes hopes for “liberation” as naive: collapse means poverty, instability, and suffering.
Financial chaos hits the vulnerable hardest, as social safety nets and market norms disintegrate. Bitcoin may offer an alternative to inflationary fiat, but the dollar dying won’t bring freedom, but disaster and misery for most.
Christina is a web3 writer, editor, and content manager with a passion for technology and starting important conversations. As an industry OG, she’s not phased by market volatility and frequently scrimps on Starbucks to BTFD.
CryptoSlate is a comprehensive and contextualized source for crypto news, insights, and data. Focusing on Bitcoin, macro, DeFi and AI.
Stay ahead with crypto’s key news and insights. Delivered directly, every day.
Disclaimer: Our writers’ opinions are solely their own and do not reflect the opinion of CryptoSlate. None of the information you read on CryptoSlate should be taken as investment advice, nor does CryptoSlate endorse any project that may be mentioned or linked to in this article. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own due diligence before taking any action related to content within this article. Finally, CryptoSlate takes no responsibility should you lose money trading cryptocurrencies.
PayPal USD’s TRON debut leverages LayerZero for seamless cross-chain integration and broader market reach.
Bitcoin, a decentralized currency that defies the sway of central banks or administrators, transacts electronically, circumventing intermediaries via a peer-to-peer network.
Get the latest crypto news, insights and market analysis straight to your inbox.
We respect your privacy and will never share your email address.
Please add [email protected] to your email whitelist. You may unsubscribe at any time.
Disclaimer: By using this website, you agree to our Terms and Conditions and Privacy Policy. CryptoSlate has no affiliation or relationship with any coin, business, project or event unless explicitly stated otherwise. CryptoSlate is only an informational website that provides news about coins, blockchain companies, blockchain products and blockchain events. None of the information you read on CryptoSlate should be taken as investment advice. Buying and trading cryptocurrencies should be considered a high-risk activity. Please do your own diligence before making any investment decisions. CryptoSlate is not accountable, directly or indirectly, for any damage or loss incurred, alleged or otherwise, in connection to the use or reliance of any content you read on the site.
© 2025 CryptoSlate. All rights reserved. Terms & Conditions | Privacy Policy
Join The Crypto Investor Blueprint — 5 days of pro-level strategies to turbocharge your portfolio.
Please add [email protected] to your email whitelist.
Stay connected 👇