Topic: Fiat currencies - page 8. (Read 1696 times)

Dollar will always be the international currency no matter how many currencies with larger values may appear. It's well established and has a stronger foundation so no currency could ever replace it. Dollar is actually not getting weaker as you have mentioned. It's just stable and Euro is actually relying on its price.

Dollar would always be the most dominant fiat currency there is. Price is not always the best support for this statement. USD is the most used currency in the trading market, whatever market we are talking about, USD is there.

100 USD used to mean about 5 ounces of gold I believe, after 1933 until the 1970's it was about 3 ounces.   Any time you watch an older movie think about that, USA really was very rich back then going on some of the figures.

1 sterling pound coin used to be made from gold, enough to weight about 1/4 an ounce of gold I think it is.   Now the coins are simple nickle or similar and the coin is about a dollar or so nowhere near the same values.

The difference is mostly we now have central banks able to produce whenever they feel like, previously they could only do it if purchasing the gold to put into the backing of the currency.  Now we have promises as backing, so politics and all its fine words are unfortunately not the worth each currency had before.


EURO is tied to Dollar and to every other FIAT currency.  There are scared of gaining value and tried to spend as much as possible, that is the current thinking.  Euro cannot take over, its likely to fail like a domino if YEN or USD falls.
ECB now keeps negative rates and actively undermines their currency value to discourage any from using it as capital.    All these factors are important and relate to crypto which luckily is not tied to politics or the genius behind modern economics and the new ways to count.


Ive mentioned before SDR which is a currency operated by the IMF.   Its not a theoretical scenario, this is an actively operated currency but it is not available to people only the highest operators in the global reserve currency system and that would be national central banks.   They do have some gold but its safe to say SDR is political and FIAT with no reliable value in future but it is backed by every major country in the world for the purposes of trade.

dunno, i don't know dollar getting weaked,even i dunno what makes dollar weaker.
yes, absolutely yes.
well,i guess Importers hold more US dollars for business activities. The dollar is also bought by many companies to pay dollar-denominated debt for fear of increasing dollar value. If the dollar is stronger, the debt becomes bigger.
for sure, i dont think euro will be replacing USD,even for 50 years more.

Strong doesn't mean best or stable

100 USD 20 years ago is not the same as 100 USD today, it well known that the Dollar is losing value, as well as many Fiat currencies out there.

This is what happens when you print too much "paper", and can't back it up with enough resources and Gold, it starts to lose value.

Just because stablecoins are pegged and backed by the dollar does not make the dollar safe from possible economic problem which can affect all the country. The big reason why many are fearful on the future of the American economy is the gargantuan debt and the continuing printing of green bucks which can mean a runaway inflation once the whole world will stop using the dollar as the currency reserve and the one used in international commerce. Now, let's not of course spread hypes here and rumors. There are now many economists warning the country of the impending doom if the old ways are not rectified. At the end of the day, debtors do not win.

US dollar is a universal currency that's why it's dominance is seemingly irreplaceable and cannot be easily overthrown by any currency. Unlike other currencies, no matter where you go across the world, you can still use a dollar to buy you just need to go to banks and do an exchange for their local money because of United States' relationship with other countries, it makes USD universal and versatile that it still have value no matter the place.

Current price does not determine which is stronger than what. US Dollar is definitely stronger since it's dominating the market in terms of trades, reserves and is generally accepted to have value. For your question as to why Euro has higher price, it's because the total market supply of Euro is far lower than that of USD. Lower supply would mean higher prices.

All fiat currencies experience monetary inflation, even Bitcoin has. New bitcoin is generated on intervals, which raises supply and decreasing price, same goes with fiat currencies.

The strength of dollar stems from the its very history and nature, as US being the hegemonic country throughout the years. As they are considered the dominant country in all aspects of technology and economy, its market is able to increase the value of USD by exporting and importing products throughout the world.

I doubt that the current tenure of Trump is the reason behind the weakening of dollar but it may be considered as a factor.


USA being the dominant country is always open for competition on its top spot. Like what you mentioned, Asian countries such as Japan, Singapore, etc. are starting to develop and increase the value of their currency proportional to their economy.

The rumors are all part of the game and currency values fluctuate. The dollar will not be the strongest currency forever, but it sure is now.

The US currency is pegged to the US economy and during Trump's tenure, the economy has been very great to the fact that people who initially thought he wouldn't be able to grow the economy are saying that he shouldn't be taking all the credit for the economic boom that the US economy are currently experiencing.

in some countries may consider the dollar to weaken but indeed currently there are many economic problems that occur and in my opinion this is what makes fiat prices are unstable, now makes many traders confused, in my country the dollar exchange rate is stronger than the euro.

There is Statis Euro (EURS) backed by Euro.

https://coinmarketcap.com/currencies/stasis-euro/

They have a website: https://stasis.net/

There's also Binance GDP

https://coinmarketcap.com/currencies/binance-gbp-stable-coin/

https://www.binance.je/en

I've seen other stable coins pegged by other currencies but I didn't mention it because the volume is too low.

It doesn't really put the dollar at risk. If we're looking at the DXY chart, it shows an increase in strength, not a decrease. I expect it to keep doing well as there is no doubt about the fact that it is the most in demand fiat currency in the world. Any fiat currency gaining against the us dollar should be used to stock up on more us dollars.

I have converted most of my euros to us dollars years ago already. If I didn't do that I would have lost out on a lot of purchasing power. I don't rule out the possibility of seeing the euro sink under the $1 mark at some point of the future, which is why I have more us dollar exposure than euro exposure.

The currency is still stable. It's used as a reserve by many countries and we also know that certain oil producers sell their oil for dollars only.

I do agree that it's purchasing power has been decreasing.


Can't predict how long it will take but China is definitely waging a monetary war. From the few I read they are increasing their gold reserve.

The USD is the strongest FIAT. That doesn't mean that it's necessarily the best asset to hold.

In fact, I don't even think that the US government right now wants their currency to be this strong, because a strong exchange rate implies that their exports are completely uncompetitive (which is why Trump accuses China of manipulating exchange rates, if you follow these developments).

What people mean by a "collapse" is in the long run, fiat's tendency to go to zero in value due to its intrinsic value - which is precisely zero. It's not in the short term.

The dollar has been dominant for nearly a hundred years due to the fact that the American economy has been strong and powerful for many years. But recently, the trend has changed to the side of the countries of Asia, their economies are developing rapidly and this fact puts the dollar at risk.

LOL. Euro?  Before USD there was English pound, before English pound there were Netherland whatever they had, before Netherland whatever they had was Spanish whatever they had. Why you think this currencies were world reserve currencies? This is quite simple history question.

When USD will lose role of world reserve currency CNY will take it. When CNY lose world reserve currency status Indian whatever they have will take it.  Maybe just maybe Bitcoin will jump in not sure when.

Actually people are not trying to say that Dollar is getting weaker and weaker against other currencies. What they are trying to explain is that dollar is getting weaker and weaker in terms of it's purchasing power. Which means that what you could buy of dollar years ago you can't buy that now. Coming to the dominance of USD it's because US acts as a sole superpower in the Capitalist Economy since world war-2. Their economic influence increased with breaking of Soviet Union. Moreover simply being higher in Value is not a sign of dominance. It's merely a sign of economic development. There still can be a lot of difference in their purchasing power. For eg. If you can buy a burger for $1 in USA it's not necessary that you will also be able to buy a burger worth Euro 1 in Europe.

Ask the leaders of a lot of countries that hold USD as one of their reserve currency and perhaps you’ll get a straightforward answer to your questions. USD remains the strongest simply because a lot are still pegged to the dollar, and a lot of countries are still keeping USD as reserves together with gold. It has become the standard currency used for international trades and purchases which makes it a more fitting currency for the global scene. It’s just a matter of time before the USD gets overtaken by something else, and the EU, together with China are doing their absolute best to be at the top of the chain of fiat currencies.