Fiat currencies

[panganib999]

Some say that dollar is weak and getting weaker.

But dollar is still strongest currency.

Look at the stable coins like : pax, usdc, usdt true usd and more...  They are pegged with usd.
But how many stable coins are for euro or other currencies? 

As people spreading rumours that dollar will  collapse and losing dominance, i see different.

My main question is what makes usd so dominant?

And why the euro value is higher then usd but USA dollar is still dominant, do you think that usd will be replaced by euro?


What's Ur take on that?

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.

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[CryptoBry]

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.

[Senaia]

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.

[ashmodeus]

Some say that dollar is weak and getting weaker.
But dollar is still strongest currency.
My main question is what makes usd so dominant?
And why the euro value is higher then usd but USA dollar is still dominant, do you think that usd will be replaced by euro?

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.

[STT]

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.

And why the euro value is higher then usd but USA dollar is still dominant, do you think that usd will be replaced by euro?

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.

[FlightyPouch]

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.

[Genemind]

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.

[LUCKMCFLY]

<...>

It is what is called the hegemony of the dollar since it represents 80% of global transactions and 60% of world reserves, in a nutshell its dominance comes at the end of World War II.

 You can expand more here: https://es.cointelegraph.com/news/the-crypto-that-could-end-the-hegemony-of-the-dollar-no-its-not-bitcoin

Although it sounds somewhat ironic, what is most handled is the US dollar, Europe does not care much because Brexit has brought some insecurity in the associated countries, on the other hand, China is a country that has always wanted to have power, especially economic terms and its currency, the Chinese Yuan has not taken it into account for stablecoins, the US dollar and the euro itself if they have been taken into consideration and have included almost all of them.

All this suggests that many stable currencies will come, after Mark Zuckerber announced the launch of Libra, all countries with more power have reacted, therefore, another series of interests has been activated.

In the local Spanish forum I talked about it: https://bitcointalk.org/index.php?topic=5191907.0

[NathanJB]

Some say that dollar is weak and getting weaker.

But dollar is still strongest currency.

Look at the stable coins like : pax, usdc, usdt true usd and more...  They are pegged with usd.
But how many stable coins are for euro or other currencies? 

As people spreading rumours that dollar will  collapse and losing dominance, i see different.

My main question is what makes usd so dominant?

And why the euro value is higher then usd but USA dollar is still dominant, do you think that usd will be replaced by euro?


What's Ur take on that?

Well, Euro is also facing the same problems which USD is facing. Euro is not working as if there are no problems with the currency at all. USD has been the number one currency in the world. It is in fact the default global currency. And I cannot see it being replaced in the next years to come, not even Euro. Euro is of course dominant in European Union and other parts of the European continent but the rest of the world is using USD as the world's currency. Asia, Africa, the two Americas, etc.   

[josephrioveros123]

Some say that dollar is weak and getting weaker.

But dollar is still strongest currency.

Look at the stable coins like : pax, usdc, usdt true usd and more...  They are pegged with usd.
But how many stable coins are for euro or other currencies? 

As people spreading rumours that dollar will  collapse and losing dominance, i see different.

My main question is what makes usd so dominant?

And why the euro value is higher then usd but USA dollar is still dominant, do you think that usd will be replaced by euro?


What's Ur take on that?

Well, Euro is also facing the same problems which USD is facing. Euro is not working as if there are no problems with the currency at all. USD has been the number one currency in the world. It is in fact the default global currency. And I cannot see it being replaced in the next years to come, not even Euro. Euro is of course dominant in European Union and other parts of the European continent but the rest of the world is using USD as the world's currency. Asia, Africa, the two Americas, etc.   

I can say that dollar is still the dominant currency because of the world dominance of US. We can say that US is the strongest country in the world and can have control on many economic systems. On the other hand Euro currency have higher value because. It is use in many country In other word it is on demand. Basic law of supply and demand the more the demand the highier it's value that is my point of view in this topic.

[Murat]

The US dollar is the most circulated money around the world, It's been established as the most common currency in the world, people export and import product by the payment of Dollar, wherever you go within this planet, US dollar always makes your way easy, since the price of Euro is more but the acceptance of US dollar is more than it so USD is the main element of the monetary market. one important thing relates to this difference that is the supply of Euro is very lower than USD so the dominance of USD is spreading out all over the world, A lot of countries are holding USD for the shake of their reserve. that's why the importance of USD is far away in comparison to other fiat currency.

[abhiseshakana]

Speaking why the US dollar is very dominant should look back to history how the US dollar can become a world exchange rate (https://www.thebalance.com/bretton-woods-system-and-1944-agreement-3306133)

According to the article above, I conclude that the US dollar has become dominant because:

1. The origin of the dollar can be a world exchange rate, because the United States gold reserves are the largest, so the developed countries of the United States alliance in the second world war agreed to control the local currency with the dollar.
2. The United States is the winner of World War II. The US has a stake in recovery and investment in many countries affected by the war
3. As the winner of the world war, of course, the US military power is the largest, so that the security conditions are relatively more stable so that the economic and political climate in America is more conducive
4. the total value of sales of all goods and services in the United States is still the largest (GDP) so that currency traffic between countries is very high so that the USD is still needed.

[Ctn]

Dollar is getting stronger and stronger only against other fiat currencies but it is not getting stronger actually. Because around 100 years ago we used to buy much more things from $1 than what we can buy today. This clearly shows how negative dollar's value has gone and this will go even more down as fiat are meant to be in such a way.

[alyssa85]

My main question is what makes usd so dominant?

Two things - they have never defaulted in the 200 years they have been in existence (like Britain). And they have interest rates at 2% (in the UK interest rates are 0.75%, in Japan -0.1% and in the eurozone -0.5%).

So if you want a stable govt and high interest rates, you would put your money in Treasuries - and in order to buy treasuries you sell your currency and buy dollars - and that strengthens the dollar.

The dollar is going nowhere. Currencies like the euro might disappear if they have another crisis.

[ReiMomo]

Dollar is getting stronger and stronger only against other fiat currencies but it is not getting stronger actually. Because around 100 years ago we used to buy much more things from $1 than what we can buy today. This clearly shows how negative dollar's value has gone and this will go even more down as fiat are meant to be in such a way.

I think it's because the USA is a powerful country all over the world the reason why the value of its fiat is big and dominant compared to another fiat. Well, Since Europe it the motherland of the USA so maybe there is a possibility if they will allow it but I think this time it's too hard to predict since the dollar has different features compared to the euro.

[cryptoknightt]

however the price movement also I see fiat conditions have a very dominant price movement, usd has a high demand and many platforms that use usd so that usd is now the king of fiat.

[Apes]

The USD is dominant because the USD is the most stable currency in terms of other currencies, so it is widely used throughout the world, with stable prices many people use it to trade without worries that the exchange rate is down. and because the international market has been accustomed to using the USD it will be difficult for the Euro to replace it, however it is not impossible if European trade mandatory using the Euro as their transaction tool to replace the dominance of the USD in Europe.

[ChrisPop]

The fiat currencies in general are weak and will get weaker and weaker as time goes by due to the inflation. That is why you should get rid of your fiat currencies as soon as possible. By "get rid of" I mean invest them into income producing assets or hard-assets that generally appreciate in value over time like gold or Bitcoin? or real estate. If a currency is stronger than another it is most usually because the supply and demand law. A lower supply currency could be much higher in value than one which is widely spread and the demand doesn't grow with the supply. Of course there are other factors, but we're not at the macroeconomics class here 

[semobo]

I don't think dollar is getting stronger but many currencies around the world lost its value which leads the price of USD to be high for their value so they become like a dominant currency but not far away from losing their dominance in the world economy since already underworld transactions are mostly in crypto if more countries make it legal then we can see it everywhere.

[TinaK]

Some say that dollar is weak and getting weaker.

But dollar is still strongest currency.

Look at the stable coins like : pax, usdc, usdt true usd and more...  They are pegged with usd.
But how many stable coins are for euro or other currencies? 

As people spreading rumours that dollar will  collapse and losing dominance, i see different.

My main question is what makes usd so dominant?

And why the euro value is higher then usd but USA dollar is still dominant, do you think that usd will be replaced by euro?


What's Ur take on that?

Because Dollars is under control and due to the power hands of US. This USD seems stronger than any other fiat currenciez in this world.
If you see the Kuwaiti dinar which is costliest in the market but it is not highly used than USD in the market.
So don't compare cryptocurrencies with fiat currencies.