I agree that asset inflation is an inevitable consequence of money supply expansion. I just don’t see any indication that we’re headed toward a fiat collapse.
Markets might not be choosing fiat currency for a store of value, but they’re still apparently choosing it for a medium of exchange.
They're not "choosing" it, it's literally their only option. If I want to trade my ETH to GME shares, I have to convert it to USD in between.
What this will do is erode faith in the USD. If demand for cryptos, for example, stays the same, but suddenly everyone has more $$$ to throw around, crypto will keep skyrocketing in value while the USD buys less and less of the things people actually need. At that point there will be runaway demand for crypto because people will start "believing" it's more stable than the USD.
Yeah, that’s my point: it’s the only option, except maybe for gold. And gold is only going up a little. So how could fiat currency be collapsing?
Crypto may be seen as an alternative in the future, but right now it’s all over the map. No one is using it for their savings account (or checking account, for that matter).
Markets might not be choosing fiat currency for a store of value, but they’re still apparently choosing it for a medium of exchange.