Part of this is because despite American inflation, every other fiat is worse. So America did it, but your government helped and is complicit. The major players could have dethroned USD by now if they had a better currency military or not.

It is a double edge sword and it will hurt America soon and bad. Most first world countries hold US treasuries and bonds as a way to "back" their currency. The plan is if their currency slips, they sell the US assets and buy their own currency to prop up it's price. That hurts the US market which reduces the value of the other countries holdings. This will domino when the first major player falls.

Remember that recent overnight (to Americans) flash crash in global markets? Japan raised rates. They are one of the biggest international US treasury holders. People in the know thought they might also start selling treasuries and start this chain reaction.

Bitcoin is still seen by most as a high risk asset and crashed too. There will be nowhere to hide short term if this happens any time soon.