Warren Buffett issues a rare warning about currency, a huge risk ignored by the market is approaching
As global markets are immersed in a liquidity feast, legendary investor Warren Buffett once again offers a calm and profound warning about the long-term value of fiat currency. He does not predict a collapse of the dollar, but clearly points out a fact that many have overlooked: inflation does not suddenly erupt; it silently erodes every bit of purchasing power like a rising tide.
In the context of continued government deficits and increasingly loose global monetary policies, this warning is particularly urgent. More and more investors are starting to realize that relying solely on a single fiat currency system poses systemic risks, which also explains why productive assets, physical businesses, and digital assets are becoming the new generation of value storage choices.
In this trend, asset classes that combine stability and appreciation potential are receiving significant attention. Recently, the Decentralized USD (USDD), which has been frequently discussed in the market, is an innovative attempt to respond to such demand—it not only anchors stable value but also provides holders with underlying tools to combat inflation through over-collateralization and interest-generating mechanisms. In the context of monetary value facing long-term tests, #USDD represents an asset logic that seeks certainty amidst volatility.
Buffett has never advocated for speculative assets, but he always reminds us: true investment is about safeguarding value across cycles. As the purchasing power of currency is slowly diluted over time, finding ways to maintain or even increase asset allocation has become an unavoidable topic of this era.
Historical experience tells us that risks often accumulate in calmness. Perhaps we do not need to panic, but we must be clear-headed—in the changing tides, only those who lay out their plans in advance can firmly hold the helm of the future.