It seems it's neither the deficit of a tool nor its deficiencies that make it obsolete, but rather the invention of new tools that do the job better. With increasing competition, will the U.S. dollar continue to be the world's primary currency, will it come to be just one of several reserve fiat currencies, or will cryptocurrency become the new instrument that powers the global economy?

Why Is the Dollar Still the World's Currency?

No one can predict exactly how long the greenback era is going to last. What's certain is there are different camps that want to end it for various reasons. And if cryptocurrencies are taken into account, there's an evolutionary push in that direction as well. Bitcoin is an alternative to all traditional, government-issued currencies, of which the dollar is the most recognizable.

The U.S. dollar has been the most important currency since the last years of World War II, when the Bretton Woods agreement established a monetary system which formed the basis for international financial transactions and commercial relations. It fixed the value of the dollar to the gold and pegged other currencies to the dollar.