US Dollar Index Drops 11% in 2025 First Half Venture Capitalist Chamath Palihapitiya Unconcerned

Billionaire venture capitalist Chamath Palihapitiya has expressed his views on the long-term decline of the US dollar, suggesting that it is not a significant concern for the United States. During a recent episode of the All-In podcast, host Jason Calacanis noted that the US dollar index (DXY) experienced its worst first-half performance in over 50 years, losing nearly 11% of its value against other major currencies in the first six months of 2025. Calacanis described this slump as "shocking," but Palihapitiya offered a different perspective.

Palihapitiya argued that the US dollar has been in a state of decline for decades, and this trend is not alarming because the gains from US assets have consistently outweighed the currency’s depreciation. He explained that the United States finances a lot of global growth, which has been a strategic decision. Palihapitiya believes that unless there is a complete collapse in the currency, the decay of the dollar will continue. He posed the question of whether this decay is a bad thing, answering that it depends on the context.

According to Palihapitiya, if asset prices in the United States increase faster than the dollar devalues, investors are still ahead. He pointed out that US assets, including equities, real estate, and hard assets, are considered a "flight to quality" by many investors. This means that these assets are highly sought after globally, and their dollar-denominated nature adds to their appeal. Palihapitiya emphasized that as long as there is American ingenuity and supremacy, there will be a constant demand for dollar-denominated assets. This demand would meaningfully offset the downside of holding USD, making the continued decay of the dollar less of a concern.