A few years ago, I visited a financial literary conference in Harlem when someone introduced me to the “Dollar Milkshake Theory.”
This changed everything.
The Dollar Milkshake Theory states that the US dollar is weakening, but all other fiat currencies are weakening more. Because the dollar is the bedrock of the global economy (meaning USD is used to buy anything worldwide), it will kill all other currencies before it implodes.
It’s like a milkshake; when you mix all the other currencies together, the dollar is the only thing left standing.
Right now, because of the strength of the US dollar — the USD has been at its strongest point since 2002?—?Europe has to pay absorbently high prices for American goods. So, while the iPhone 15 Max might cost around $1099 in America, it costs 30{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38} more in Europe.
The same goes for all of these:
- Playstation 5 getting a 10{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38} increase
- Apple Watch Ultra 1000EUR (25{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38} increase)
- Airpods Pro 2 300EUR (20{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38} increase)
A strong US dollar is not good for companies that rely on exports, like Apple.
The strong USD is a sign of slowing global growth. It means foreign capital is storing all of its wealth in the dollar while its homeland takes a nose dive.
Moreover, all of this is breaking the offshore dollar debt system, heralding the end of the dollar reserve against the backdrop of geopolitical turmoil.
This means that holding cash isn’t a bad spot to be in. Dollar-cost averaging isn’t a bad spot to be in.
Here are 3 other strategies to consider?:
Stablecoins are pegged to the US dollar, so their price doesn’t fluctuate much. The best Stablecoins are USDC, Dai, and Digix Gold Token.
Here are some platforms to make money with them:
- BlockFi (USDC and DAI): 6–7{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38}
- Curve sUSD (DAI-USDC-USDT-sUSD): 1.42{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38}
- Coinbase USDC : 2{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38}
- Uniswap USDC-USDT : 2.2{3da602ca2e5ba97d747a870ebcce8c95d74f6ad8c291505a4dfd45401c18df38}
The end times. They aren’t here… yet.
But it’s always good to have a plan B and stay the course if you truly believe in the long-term value of crypto (which we do!!)
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Disclaimer: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. You could lose all of your capital.
