Topic: Fiat currencies - page 6. (Read 1696 times)

although the value of the euro is higher but it cannot beat the dollar in terms of dominance. after winning the second world war the United States is a country that has the most gold reserves of nearly three-quarters of all existing gold reserves on earth. no other country can rival America's gold reserves. that's why the dollar became the dominant currency and became a reference for world exchange rates. as long as the American state is still strong in politics and economy the dollar will remain the dominant currency.

 Every well established currency has been replaced after some time especially when it failed to convey value reliably for the population of users.   The problem we have is within our lifetimes we have no reason to doubt it will continue as a standard as previously but historically it would be normal for transition to another standard.

Dollar is strong in FIAT terms but also this is by deliberate coordination with other central banks.   Long ago the Bretton Woods agreement placed Dollar as the worlds central reserve currency but this also was at a time when Dollar was backed by gold.  The main reason to do so is order that every dollar is backed by a solid asset value not debt or trade deficit.  Unfortunately right now we have accumulation of debt and also trade deficits such that much is owed in built up balances across global trade, the creditors to this debt see it as some benefit to carry on the debt so that trade may be facilitated.
  My main point would be that change is inevitable and we dont have to speculate too far to note that debt balances have become excessive and their highest in history especially per capita.   Where values are stretched it becomes more possible that re-balance may occur, stack a pile high enough and it might tumble and readjust some and most of us recognize that natural adjustment is probably more powerful then all our governments and politics can force to be otherwise.

When fiat came, gold was replaced. Similarly, now if we have crypto currencies that simply means fiat days’ are coming to an end. However, your concern regarding dollar is something to think about. In my opinion, it is not that US government is controlling economy just because bitcoin can be converted into dollars. There are few places where you can directly pay in bitcoin, no conversions required at all.

The united states is still the strongest nation in the world and of course their collar will surely be the most recognized currency in the world, if it was an European country that was holding the power that the United state is holding, I am sure that the European country would have been the one to actually top as regards currency ranking.

Do you know the role that the United states too plays in keeping this coin strong? Look at what they did when Venezuela wanted to release their currency, they quickly disapprove it so that they can continue to rely on their dollar and never wanted a situation whereby they will get freedom because once they do, the United states as lost one part of the factor that is making their currency relevant and popular, but the days of the currency is numbered.

Collapse can have a very different effect on the economic system. In most cases, the collapse will cause the dollar to become an even more sought-after currency in the world.
Of course, I'm talking about wars, as it was before. Always the US economy during the war showed wild growth.
In order for the dollar to lose its influence, it will be enough for all countries of the world to switch to any one single currency.
This is precisely what those who are now attacking Libra are afraid of.

USD will always be able to provide price stability because this USD has a lot of restraint, USD can also be used anywhere so that it will not be easy to make the condition of USD collapse, only an extraordinary economic crisis will have a negative impact on fiat currencies.

I am sure it’s not without reason that the regulators took up Bitfinex ​​and their options for the digital dollar.  
According to the latest news, it can be concluded that the United States is going to issue its own digital dollar in order to strengthen its influence in the digital environment.
Probably the United States wants to take the Bitfinex place with Tezer in this way. France also spoke about the national digital currency.

I think, maybe it could happen.but most still use USD, nothing is impossible for crypto as a payment tool to replace USD.

As long as Bitcoin's price is valued in dollars, it's clear what the dominant currency is---that is the dollar in every shape or form. I not even for a second thought that Bitcoin would ever replace the dollar....

If we at some distant future see the dollar come to an end, it will be replaced by something yet again issued by the US government.... neither Bitcoin or gold will become a standard even though a lot of people hope for that to happen.

Bitcoin is fine being an alternative. Whenever you need censorship resistance, it's there for you to use at any time of the day, while fiat will continue being the main standard of payments.

We live in a centralized society, where we all depend on the government and national currency or dollar (as you say, the "universal" money). Therefore USD in great demand, and still, cryptocurrency, even the best-trusted like Bitcoin, cannot compete with a dollar. It might go up or down, but it will always dominate our life, even if we agree that crypto is the way to live better.

Yess that right I see that only Crypto can replace the Dollar, not the Euro. The future of Cryptocurrency
is still long and I'm sure someday people will use Crypto as a method of payment for any transaction.

the US dollar has always been dominant and has become an international currency. in my opinion because the United States is a country that won the second world war. then America poured funds in dollars to countries that suffered defeat during the war. I think this is where the dollar becomes the dominant currency. and America is a country with a strong economy. so it's no wonder that until now the dollar will remain the dominant currency in the entire world.

Euro to some extent has replaced dollar in that Euro is stored by many countries as a reserve asset but that makes sense as EU does alot of trade.   Prior to EURO we had major currencies of France and Germany which now are replaced by EURO so of course EURO is used an is some replacement for Dollar.
   The price for Dollar has not suffered especially though it has fallen since the start of the century and of course we know the price of oil has risen since then, generally the price of alot of things has risen since then and we mostly acknowledge that currency regularly loses value and will continue to do so.    The bargain made is that the decline of currency value is regular and predictable and so dollar is stored in some regular trading way by major partners.


If exporting for a currency worth less then less value is received in exchange, its not that useful an advantage to say I will take less money for the goods I have produced.   For example USA could export alot of oil now they have raised production but also USA consumes alot of oil and so the weak dollar means problems with trade balance occur where more money is required to buy products abroad then is received for the sale of goods produced domestically.
  A weak currency is not especially beneficial except that in allowing a free float value to currency it does give some ability to cope with varied competetiveness and ensure that industry does not see a lack of orders and decline and lose momentum in an economy.

I think, the euro will not replace the dollar. and the dollar does not weaken at all, every transaction in any country receives dollars compared to other currencies.

It means war if another currency overtakes them.
Why war? Simple, they can create money again by making war.
They are the number 1 supplier of arms and weapons in the whole world and their economy will easily go to the roof once it done.

Name it, Bush, Clinton and other presidents. They know how their economy could soar in just a short time.
They made different news or even manipulated the resistance of one country just so they could sell their weapons even in a cheaper price. Even some of them are already used.

USD down? No freaking way.

Who says the dollar is weakening? Hard leadership trumps and selfish and strict regulations, let alone the country's economic strength. What I see there is a dollar that is not weakening, even though the two countries that are waging an economic war may can fall in the value of the local currency of another country. If you expect a weak usd it is one sign of the global economic collapse.

History of why the USD became the leader of the currency exchange rate, because the US has always had the largest gold reserves of almost 3: 4 worldwide. if you look at the market at this time the dominance should be in the euro, even so the value of the USD will remain the exchange rate and as a global currency.

It is simply because of the increasing US debt and has touched a record valuation but the advantage of a weakening dollar goes to exporters.

I have heard sometime back that bittrex and brave team were planning to come up with an Euro pegged stable currency but i am not sure what happened after that.

The answer is simple it is used globally to trade and hence its dominance.

The basic reason is low supply of Euro than US dollar. If the global trade market thinks that they need a change then we might see a USD being replace by Euro but it is highly unlikely in the neat future.

That could be possibly happen at that time, especially if crypto has been adopted by most countries and we started the quantum generation, we don't know yet, China might have some bigger plan too regarding crypto. But, I don't think that fiat currencies will be gone in 10-15 years from now, we might still have fiat and adopted crypto as well.

Prediction says in the next 10 to 15 years US will lose its position from strongest nation on every aspect and China is expected to be the super power so another century is too high expectation.Already US having issues with inflation rate which happened never before so its the beginning of their fall or they will pick the right leader next time?

Yes, dollar is still the winner above all currencies. It is getting higher wnd higher rate than the other currencies. i think euro will get there very soon. But for now, we can all see that euro can't defeat usd. It's a sad part for the euro.