This is quite common sence in fiat-world / fx trading for years now
The race to the bottom
Now, the FED has pumped and started the engines - to finally win
USD will drop to 0, but when will that phase transition (of trust) will go like described in phyiscs ? Second order singularity?
I feel like you imply something interesting here, but, unfortunately, I can't get it.
Imo if FED were "issuing" 1 trillion new USD per day, it would take around 3 years until purchasing power of USD would drop by 50%. And still it would be far from being zero.
My estimates are based on this fact:
There is approximately US $37 trillion in circulation: this includes all the physical money and the money deposited in savings and checking accounts.
Money in the form of investments, derivatives, and cryptocurrencies exceeds $1.2 quadrillion.
But what do
you think? Can USD purchasing power drop to zero much earlier?
Also, let's imagine it equals zero. What do you mean by the "second order singularity" in that case?