Why british pound so strong ?? | Bitcointalksearch.org

Flexystar

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Quote from: jackg on March 16, 2022, 10:52:13 AM

But the UK has oil? Like Norway and the Netherlands.

The pound is probably strong from the country's past prosperity and the resources it has.

Past prosperity? UK never lost their prosperity tbh. They are one of the strongest surviving people throughout the world. Let’s not forget small country like them once ruled whole world. They did not leave any stone unturned by using their troops. They looted countries like India, Japan, Bagladesh, Australia, Africa, And various parts of USA. They ruled for centuries and brought biggest jewell, gold, diamond, precious kingly things and kept it for themselves after independence.

Since then they thrived like crazy. They kept the kingly rule till today so no fuzz and buzz they have huge upper hand to up keep the economy.

YOSHIE

legendary

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I've read about the question asked by the OP, I think what Toby Sims (Fidelity International) said, is quite reasonable about the pound currency, the higher.

Why is the pound so strong?

Quote

The key driver of the strong pound is interest rates. Typically, the two go hand in hand: the higher a country’s interest rate, the more attractive the currency becomes to foreign investment, which in turn bolsters the pound.

It’s no surprise that rising interest rate expectations, driven by rocketing inflation figures, are the chief agent behind sterling’s upsurge. So long as rates continue to rise (which they will if prices do the same), the outlook for the pound is positive.

Other reasons are:

Quote

It turns out that long-term movements in currency prices are more important than exchange rates, which is why the British pound is worth more than the U.S. dollar.

Leviathan.007

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The British pound is maybe strong if you compare it to some other fiat currencies but just like many other countries the inflation is rising if Britania too and the fiat currencies are losing their price against many other assets such as gold and bitcoin, also British pound is not the strongest fiat currency and there are some other fiat currencies having more value than British pound such as Kuwaiti Dinar, Bahraini rial and Omani rial that's maybe they have too much oil trading but the reason for British pound can be just like the Netherlands because they relay on their resources and history of the country.

Gozie51

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Quote from: mindrust on March 16, 2022, 01:45:18 PM

Btw GBP lost most of its strength against the USD in last few years. Just a note. It is not as strong as it used to be nowadays.

Pounds have faced so much of downside at least for close to six years with the brexit agenda being one of the criticism. I think like other countries that the currency has suffered, the covid-19 made countries to have much change in budget allocation and this can also be attributed to the factor but over all, the UK currency has retained some value over the year.

325btc

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Quote from: Poker Player on March 16, 2022, 01:53:31 PM

Quote from: ?? on ??

A lot replies to post but still not clear why the uk pound is so strong.

I just don't agree with the premise. The British pound may seem strong in relation to the fucking shitty currencies around the world that are even worse than the GBP, but if we look at it from a historical point of view it is a currency that has not stopped devaluating over time and that, originally was equivalent to a pound of sterling silver. Today, for 1 GBP you get 1.5 grams.

Tell me if that seems to you a strong currency or an increasingly weak currency. Bitcoin is really strong and not any fiat currency.

Yes btc is strong but pound sterling not so volatile as btc btc have volatility problem you never know how much money you have tomorrow if you hold money in btc but thats other story....we investigate now why uk pound is strong compared with other fiat currencies ?
Whts makes uk pound so special and will it last that stromg ?

Poker Player

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Quote from: ?? on ??

A lot replies to post but still not clear why the uk pound is so strong.

I just don't agree with the premise. The British pound may seem strong in relation to the fucking shitty currencies around the world that are even worse than the GBP, but if we look at it from a historical point of view it is a currency that has not stopped devaluating over time and that, originally was equivalent to a pound of sterling silver. Today, for 1 GBP you get 1.5 grams.

Tell me if that seems to you a strong currency or an increasingly weak currency. Bitcoin is really strong and not any fiat currency.

mindrust

legendary

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It is the currency of the world's most or second most developed country. At least that's how most people see the UK. The UK is basically the US in a nut shell. Pretty much the same thing but a lot smaller. It is like USA but in Europe. There are so many other shit which makes UK famous but that's pretty much it.

Btw GBP lost most of its strength against the USD in last few years. Just a note. It is not as strong as it used to be nowadays.

jackg

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https://bit.ly/387FXHi lightning theory

Quote from: ?? on ??

What resources ? China has canada and russia are one of tge countries what people need ...china produce toys and a lot plastic... famous notorious " made in china"
So ...thats what...but uk gives what Huh

It's still got a fifth of the world's gold and is considered the first country to undergo an industrial revolution. And then there's still the oil extraction and the county has large reserves of other resources like lithium (for rechargeable electric batteries) and coal (from when mines shut because the labour was cheaper in other countries).

Quote from: 325btc on March 16, 2022, 01:15:20 PM

Canada is safest place and strong economy and strong goverment....yet CAD dollar is ...so weak now why ?

But how do we know the strong uk currency is not just ponzi ? Its known that uk been attracted by swindlers and tax invaders to invest in uk specially in property in london..its well known perhaps this is the reason what creates the huge demand for uk currency...but at some point the demand have to stop and if there is no other real reasons to get uk currency then british pound could fall also

Can you provide a prediction on when there won't be any money launderers or people that need to hide a large income - (this isn't where a lot of the strength comes from though)?

There's also higher interest rates from the treasury of the UK compared with the one in the EU.

It's not possible to guarantee the security of Switzerland, I think a sea with the weather conditions of northern Europe is better than mountains at keeping a country from being invaded.

Chinese currency is manipulated in value by China afaik because they want their citizens to invest in things productive and not their currency or currency based assets.

325btc

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Canada is safest place and strong economy and strong goverment....yet CAD dollar is ...so weak now why ?

But how do we know the strong uk currency is not just ponzi ? Its known that uk been attracted by swindlers and tax invaders to invest in uk specially in property in london..its well known perhaps this is the reason what creates the huge demand for uk currency...but at some point the demand have to stop and if there is no other real reasons to get uk currency then british pound could fall also

Its a miracle that after brexit panic the uk currency rebounded so quick but how long will the uk currency can survive so strong ? As there is no real demand to have uk currency only what could be is the safe location to store your wealth...but then its a switzerland and monaco..i dont see for wealth storage reason will uk used instead of monaco or switzerland.

gantez

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Quote from: Hydrogen on March 16, 2022, 12:21:00 PM

People are always looking for safe places to denominate their wealth.

Any variable offering advantages in stability or safety are correlated with value.

And also to the confidence factor, I think that UK is part of countries that give accurate data of their economic indices or figures to development/growth and people rely on information from it to be the fact. Maybe Australia, Canada ,US may also be part of it.

Hydrogen

legendary

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Quote from: 325btc on March 16, 2022, 10:28:28 AM

Why british pound so strong

I would guess reasons for it go something like this

The UK is geographically isolated from global hot spots like ukraine and the south china sea
They are insulated from greece's debt and the european unions troubles
Their revenue to debt numbers are positive

People are always looking for safe places to denominate their wealth.

Any variable offering advantages in stability or safety are correlated with value.

Sterbens

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Some of the things I often hear are, the strengthening of a currency is driven by a high level of economic confidence. If we look at how the UK economy is so stable and plus as long as interest rates continue to rise, the pound itself is positive. No wonder right? It is the strong economy that is the reference why until now the Pound is so stable and could even rise in the future. Which economic sector? If pre-pandemic, of course, there are many policies that limit the community in carrying out the economy, both trading in business and market products in factories. But when some policies have now relaxed with normal activities, economic growth improves very quickly depending on the designation of a developing or developed country. Because Britain is a developed country, it is clear that economic growth after the pandemic will be very different from other developing countries.

gantez

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I'm thinking regarding to the UK that they have been the father of many nations or countries in colonizing them and they keep that for long and building their economy over a long period of time. So that economic confidence is part of the reason. I searched to see five reasons that affect a currency.

This may help

Quote from: 325btc on March 16, 2022, 10:28:28 AM

....so what for the currency is strongest ??

Kuwait looks like the strongest currency in the world

jackg

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https://bit.ly/387FXHi lightning theory

But the UK has oil? Like Norway and the Netherlands.

The pound is probably strong from the country's past prosperity and the resources it has.

325btc

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Why british pound so strong
Will it remain that strong ?
Value of currency strenght cant be about demand as nobody dont want or need uk currency really as uk is not food supplier also in uk there is no gas or oil ....so what for the currency is strongest ??
If anything then canada and russia currency should be strongest as in canada and russia have oil and other resources whart other countries need but tgey are not strong russian currency falling and also canadian dollar is weak....and even the UK did massive money printing and big bail out the banks....the uk currency still remains strong so what is the secret of uk pounds sterling strenght ?? As clearly its not demand for pounds...as in uk there is no products or resources what other world really need.

Will it just some speculation and we could see huge drop of uk currency ??

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