These past few days, I took some time to write the USD series outlook for the new year. Understanding the currency itself is at the core of understanding the modern financial system. The main points are:

1. Currently, all transactions are conducted in fiat currency or based on fiat equivalents (such as stablecoins).
2. The rise and fall of all assets, on a larger scale, are changes in the numerator. If the denominator used as currency changes, then the nominal value will fluctuate more intensely.
3. Any newly created currency will not flow evenly into the financial system. Newly created funds always chase limited/scarce assets.
4. The importance of interest rates at the currency level mainly lies in opportunity cost. Or in terms of time value.