Topic: Fiat currencies - page 2. (Read 1696 times)

I think we just cannot find out how famous and how strongest the currency is just by it's value , it also depends on how it can be put into practical use all around the world , we cannot just weigh them in like this , I don't think they will die , I don't think they ever will become less important or dominant.
I personally think the Fiat system is an amazing thing but  interference of it with the governmental corrupt plans makes it amazingly full of loopholes .

Properly managed fiat money beats hard money any day of the week

When you speak of the mistakes of the fiat system, you actually refer not to the faults and drawbacks of this system itself but rather to its misuse and abuse, and overall mismanagement by governments. Fiat is like a very powerful medication. If you know how to use it and, more importantly, when to use it and in what amounts, it can actually cure the disease. But if you don't, it can do more damage than good


The problem is, at certain points central banks and the government need to expand the supply of money (monetary base), and at other points to contract it. That, technically speaking, makes the hard currencies useless (in fact, even detrimental down to outright destructive), while fiat does that in a pretty self-regulated way via credit money (so called endogenous money)

Learning from the mistakes of the fiat system and with the aim of justice and human rights of all humans, we must start using real money that is universal (money that has intrinsic value based on gold or silver precious metals).

The use of a currency that has intrinsic value has many advantages including the system of gold and silver money will result in freedom of gold, import, and exchange export it. Means it also means the fixed exchange rate interstate money. Central banks and the government, it is impossible to expand the circulation of paper money, every currency announced in the world so that it is always limited to certain standards in the form of gold and silver and in the end every country will maintain his gold and silver wealth.

While what is currently applied is the current fiat currency system which is very volatile because it is printed without collateral but also because the practice of money is made as a commodity. So very easy to use for speculative activities on the money market.



Even though it is still in the stage of discourse, action must be taken to realize it. Massive action carried out by many Central Banks in the world that began to derivate their foreign exchange reserves from dollars to gold is one step in the awareness of the corrupt fiat system.

58% of international foreign exchange inventories are still in the form of dollars, 20% euros and the rest are other currencies. Before discarding dollars or shifting dollars, a country must replace its foreign exchange reserves in the form of dollars into gold. Action to waste dollars is a good first step, it's just that you have to prepare carefully. If the dollar weakens, a country's foreign exchange reserves are also reduced. The amount of foreign exchange reserves in dollars today is also still used as a fortress to protect a country from the risk of global economic impact.

Yes, it is still strong currency but no one guarantees it will last forever as the strong one. However, if the dollar is going to collapse, it must need a long time since it will affect a huge global economic turmoil. And surely it needs an alternative currency that can be used for a global purpose. What currency is possible to replace the dollar? I am not sure to answer it. No idea for now, but it may be from a country that dominates the world economy.

*See the possible scheme for Dollar Collapse.


                              Source: thebalance.com

From the picture, there are some conditions needed:
1. Underlying weakness
2. Viable currency alternative
3. China and Japan dump dollar
4. Most of the countries in the world doubt in dollar

*As long as the conditions above cannot be fulfilled, then Dollar cannot be replaced. So, let see if those conditions are really going to appear or not. [I have heard some news related to the conditions starting to appear currently].

What claims the weakening of the dollar at the moment huh. Strong leadership trumps and regulations that are greedy and strict, let alone the economic strength of the country. What I see is a dollar that doesn't collapse, although the two countries that wage an economic war that crash in another country's local currency's value. When you foresee a poor dollar, this is a warning of the deterioration of the global economy. Evidence of why the USD has become the currency exchange rate pioneer, as the US has always had the world's largest gold reserves. When you look at the market at the moment, the euro will prevail, so that the value of the dollar remains the exchange rate and the global currency.

Due to those reasons, cryptos are too safer than fiat. Cryptocurrency is good in all known means still something is missing to convince anyone to make adopting it. Some people say that cryptocurrency is safe for sellers, yes that’s true, but what about buyers, is it also safe for them?

It also has its disadvantages, and you should always keep those in mind and know the right places to spend your Bitcoin. Cryptocurrency is safe in some ways but not 100%, and if you talk about being fast, there are payment methods that are faster than BITCOIN and almost instant, like VISA and many of them. I like cryptocurrencies and I use them, but that doesn’t mean they are 100% best all round.

That is very right strength is more important than the value. Dollar is the strong currency it is known all over the world and is acceptable by all also. People considered it more valuable than their own currency. Even the citizens of Kuwait, Britain consider it more valuable having their own currency of high value because dollar has more strength than their currency.

That doesn't necessarily have to do anything with Bretton Woods

And the current regime is rightfully called the petrodollar system (which I already referenced to in my post) because under the Bretton Woods agreement, the American dollar was pegged to gold, with other global currencies pegged to the dollar. This is no longer the case today, so we can't consider the old system still in place and power

However, the dollar remained the world's reserve currency because in 1970's the US and major oil producers agreed to set crude oil prices in dollars, which kicked off the petrodollar system. It is this system as well as the economic might of the US that allowed the dollar to preserve its status as the international reserve currency, not some old agreement

The dollar is really getting weaker and weaker, but the US can always rectify this situation by creating a new military conflict. This has happened before and is happening now.
It is enough to list the last few conflicts, Vietnam, Serbia, Iraq, Libya, Iran, Syria. The United States is participating everywhere, why do you think?

Maybe they have a less limit (Euro) than USD that's why it can cause from different value even they overtake the Euro from the economy of the country. This is like on some country like Japan has a less value of money than other country even they are one of the strong and rich in the Asia.

I guess having bigger value is a different thing from being stronger. Having the most value doesn’t mean that a currency would be the strongest in the world.

Yes, Euro has more value than the US dollar but that doesn’t make it stronger. If it’s by having more value, then there are lots of other currencies that has more value than the Euro. The most valued currency in the world is the Kuwait Dinar, and there is also the British pounds Sterling that has more value than the USD, but these currencies are not the strongest.

we know America does not print USD according to its gold reserves, while some countries are preparing to use the new trading system beyond the use of USD, like the news some time ago about the action of wasting dollars. I think we should have gold reserves because it is not impossible that in the end, we will all return to the trading system using gold. but I like it if crypto could be an alternative.

Only technically, for most of the world's international transactions, the currency is still USD (only in European Union EUR is used commonly for such transactions). Therefore practically the Bretton Woods regime is still in power.

but this happens a lot of opposition from some countries, that they do not agree to the dollar as a backup tool like gold. even from some countries it is planning cryptocurrency as an alternative currency, which is not affected by inflation, and if this is true then bitcoiners will now be rich if all countries allow it

It's long gone

Technically, it has been dismantled since the so-called Nixon shock when the dollar was officially divorced from its gold backup (what we have today is called the petrodollar system). But in actuality, it was gone soon after its establishment when Uncle Sam started to print insane amounts of fiat not backed up by anything. It became obvious when in 1960's a few European counties (France under de Gaulle being the most vocal among them) demanded that the US government redeem their dollars for real gold

We all know that USD is the most common using currency around the world so it's the strongest currency at this time, When you think at the macro level then you see the influence of USD at every international business, it's not only financial aspect but also something political, in the previous time, Most of the countries had a tendency to reserve the gold for the emergency purpose and making the local currency, But nowadays, USD is being considered as the reserve tool so it's importance is getting higher day by day, I think that is why USD is more worthy and stronger than the Euro.

Bretton Woods 1944 Agreement is still in force and therefore USD is the global currency. Some would say that as long as it is the global currency, no crypto can become a true replacement for it.

Financial and political power of United States make USD stronger comparing to any other fiat currencies. And it is a truth that usd is the most common currency in all over the world. Easy to exchange in any part of the world.

There exists a very simple reality check

So anyone who wants to check the current health status of the American dollar can easily do it with a couple of clicks. For that, you don't need to read arcane explanations and lengthy textbooks. There is a metric which instantly tells us how well the dollar is at the moment. It is the USD index (USDX) which is a benchmark measuring the value of the dollar against the basket of top 6 currencies in the world. If anything, it has been performing pretty good recently

 I think it is because America is the most developed and powerful country in the world in terms of economy and armed forces. Besides, the Euro symbolizes the currency and power of the European Union, it does not have to come from one country so it cannot be used as a common currency.
Perhaps when the US economy is in trouble, the Euro or GBP will rise and leave the USD behind. But for that to happen is very difficult, Americans are really smart and they contribute a lot to the world.