Could The US Dollar Collapse?

Key Takeaways

• A currency collapse is when a country’s currency loses all its value and becomes practically worthless in day to day use
• This is generally as a result of political or economic upheaval, hyperinflation or war
• It’s not a common occurrence, but we’ve seen it happen before in various places around the world
• For investors, it’s a risk to be aware of, though luckily it’s fairly easy to protect yourself against it
• While technically the US dollar could collapse, it’s backing from the largest economy in the world and its status as the global reserve currency, makes that highly unlikely

Whoa, that’s a big statement. If you’re someone from Argentina, Venezuela or Russia, you understand the realities of what can happen when your home currency fails. It’s a big deal, and it can cause immense financial damage to the economy and individuals.

But is it actually realistic to think that the US Dollar, the world’s reserve currency, could collapse too?