Billionaire venture capitalist Chamath Palihapitiya believes that a long-term decline of the US dollar is not an existential concern for America.
In a new episode of the All-In podcast, host Jason Calacanis highlights that the US dollar index (DXY) witnessed its worst first-half performance in over 50 years after losing nearly 11% of its value against other major currencies in the first six months of 2025.
While Calacanis describes the slump as “shocking,” Palihapitiya argues that the dollar has been in decline for decades, and it’s not a major concern because the gains from US assets have consistently outweighed the currency’s depreciation.
“This has been a one-way trade for a very long time, and it’s probably important to understand why that is. And I think it generally has to do with the fact that the United States finances a lot of growth, and that has been the right decision.
Unless you see a complete collapse in the currency, I suspect that this decay continues to happen. So the question is, is it a bad thing? And the answer is it depends.
Because if asset prices increase faster than the dollar devalues, you’re still ahead… If you look at asset prices in the United States relative to asset prices any place else in the world, it is the flight to quality, which is to say it is the thing that everybody wants to own. And you see that in the equity markets, you see it in real estate, you see it in hard assets…
The reality is that a lot of people still want to own these assets more than they want to own other assets and those assets are dollar-denominated.”
Palihipatiya also highlights that there will be a constant demand for dollar-denominated assets as long as “there’s American ingenuity and American supremacy,” which would meaningfully offset the downside of holding USD.
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