[omnicognate]

The first point makes no sense. Nobody's saying the dollar would become worth zero. Central banks around the world have huge reserves of USD. The dollar ceasing to be their reserve currency en masse (which I agree is highly unlikely) would involve them selling those reserves, which would affect the dollar's value. Falling value of USD implies rising prices in the US.

To the second point, yes for most countries there's no plausible alternative to USD. However, there's no law of nature that says the world has to have a single reserve currency. AIUI rather than the entire world switching away from the dollar the real risk is of fragmentation. Yes, most countries aren't going to suddenly stop using USD as their reserve currency. But Russia has had its USD central bank assets frozen. Their reserve currency is the currency of its biggest geopolitical opponent, who have demonstrated they are willing to use that fact as a weapon. Against that, RMB isn't necessarily so bad an option. That could be the beginning of establishing RMB as a global alternative reserve currency.

Edited to add: Firstly, AFAIK this picture of RMB becoming an alternative reserve currency isn't seen as all that likely, just a possibility, and secondly I'm the exact opposite of an expert on this stuff - just disagreeing with specific points based on what I've read.

Another edit: I also agree that the idea of bitcoin as a reserve currency is completely ridiculous and insane. Everything about bitcoin is ridiculous and insane, though.

[nradov]

Chinese currency is already considered a reserve by virtue of being one of the five in the IMF special drawing rights basket. However it can never overtake USD or EUR for that purpose so long as currency controls remain in place.