One of the main issues most people have with the current fiat currency system is how every individual currency has a different value. Most of these currencies are all dependent on how the US Dollar performs, as this is the world’s global currency for the time being. But if the current trends keep up, the US Dollar will be worth as much as the Euro. What effect will this have on Bitcoin, though?
Fiat Currencies With Same Value Are ConfusingTheMerkle_Mario Draghi
Depending on who you might pose the question to, fiat currencies with the same value are quite confusing. The main reason there are different fiat currencies is because individual countries want to have some form of control over the amount of money in circulation. For example you can’t pay with US Dollar in Europe, although you can in Hong Kong.
Assuming the US Dollar would become worth as much as the Euro in the near future, the question becomes why one would be better than the other. There are quite a few EU residents who would like nothing more than to get rid of the Euro, and use a global currency instead.
Furthermore, Mario Draghi – President of the European Central Bank – issued a statement indicating he will create more money for the economy in Europe. Do keep in mind that by saying he will “create more money”, he means there will be more bills and coins in circulation, why do not increase the overall value of the Euro. In fact, such a move would have the opposite effect as it would decrease the value of the current monetary supply.
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