Fiat currencies

[beerlover]

USA is good because of capitalism but it does come with its price. Old people used to say "we used to have money but didn't had anything buy, now there is a lot to buy but we don't have the money" and we all know what they mean by that now. When capitalism first started it was a good idea, the gap wasn't that big and there was a big middle class, in 60's you could live in USA, be a factory worker and have a house that you paid for and send your children to college and could own couple cars or change your car every 5 years.

Nowadays the wealth gap is bigger so there are a lot of poor people and few rich people, there are very few factories as it is because its overseas and people who do manual labor can't afford a house at all, can't send their kids to college or even a bad health risk could set them back for years.

[ontrackk]

USA is good because of capitalism but it does come with its price. Old people used to say "we used to have money but didn't had anything buy, now there is a lot to buy but we don't have the money" and we all know what they mean by that now. When capitalism first started it was a good idea, the gap wasn't that big and there was a big middle class, in 60's you could live in USA, be a factory worker and have a house that you paid for and send your children to college and could own couple cars or change your car every 5 years.

Nowadays the wealth gap is bigger so there are a lot of poor people and few rich people, there are very few factories as it is because its overseas and people who do manual labor can't afford a house at all, can't send their kids to college or even a bad health risk could set them back for years.

this is because that's how capitalism works.  Even though it provides people with a lot of products unfortunately due to inflation it is harder and harder to buy the stuff. I believe that in the future sooner or later such system will be doomed as the only people who will be able to afford stuff will be the top 0.1% then it will be time for bitcoin and time for the real bull market adoption.

[deadthings]

I have lived my life hearing that USA economy is going to collapse and USD will collapse very soon but after 35 years of my life I haven’t seen reduction in US dollar strength rather it has increased. EURO has its own strengths but I don’t think it has the potential to replace bitcoin. For next 5 years US dollar will be the king after that I can’t say anything.

[Wysi]

I have lived my life hearing that USA economy is going to collapse and USD will collapse very soon but after 35 years of my life I haven’t seen reduction in US dollar strength rather it has increased. EURO has its own strengths but I don’t think it has the potential to replace bitcoin. For next 5 years US dollar will be the king after that I can’t say anything.

It's a know fact that USA will not collapse regardless of slowdown or economical sanctions because we have to accept the fact that US is the most powerful and it can go to any extend in order to keep its currency on top. I will consider USA as weak when we use some other fiat for trading or business in the international market.

[Wexlike]

I have lived my life hearing that USA economy is going to collapse and USD will collapse very soon but after 35 years of my life I haven’t seen reduction in US dollar strength rather it has increased. EURO has its own strengths but I don’t think it has the potential to replace bitcoin. For next 5 years US dollar will be the king after that I can’t say anything.

Yeah we probably won't witness the demise of the dollar in our life times. They can always kick the can further down the road, due to people still trying to get every dollar they can get, just because their paper is even worse.

[Vishnu.Reang]

Yeah we probably won't witness the demise of the dollar in our life times. They can always kick the can further down the road, due to people still trying to get every dollar they can get, just because their paper is even worse.

The United States Dollar is not going to die out anytime soon. As of now, it is one of the strongest fiat currencies in the world. However, its status as the reserve currency of the world can be under threat. Until around the 1920s, the Great Britain Pound was considered as the reserve currency of the world and that was the time when USD replaced it from that position. Sometime in the future, some other currency will replace USD from this position as well.

[gabmen]

I have lived my life hearing that USA economy is going to collapse and USD will collapse very soon but after 35 years of my life I haven’t seen reduction in US dollar strength rather it has increased. EURO has its own strengths but I don’t think it has the potential to replace bitcoin. For next 5 years US dollar will be the king after that I can’t say anything.

Yeah we probably won't witness the demise of the dollar in our life times. They can always kick the can further down the road, due to people still trying to get every dollar they can get, just because their paper is even worse.

Who knows. Some catalyst might just come in our lifetimes that would start the dollar's fall. It might be bitcoin, or some other crypto, or Gold or other physical asset. One thing's for sure, the governments and institutions that are backing up dollar and fiat in general, won't let that happen anytime soon. So that catalyst would have to be pretty grave and drastic for us to see it in our lifetime.

[fullhdpixel]

Having a higher value doesn’t mean that a currency is dominant, as far as I know, Euro is not the only currency that has value more than the US dollar, there are lots of currencies that has more value than the USD and the first on the list is the Kuwait Dinar. The Kuwait Dinar (KWD)is the highest currency and they have one of the highest oil exports.

1 KWD to USD as of writing this is $3.30. The next currency is the Bahrain Dinar at $2.65. Others that follows the list are Oman Rial, Jordan Dinar, British Pound Sterling, Cyman Island Dollar, and a lot of them. But despite that, the US dollar is regarded as the most powerful currency in the world.

[mamahdedeh]

I have lived my life hearing that USA economy is going to collapse and USD will collapse very soon but after 35 years of my life I haven’t seen reduction in US dollar strength rather it has increased. EURO has its own strengths but I don’t think it has the potential to replace bitcoin. For next 5 years US dollar will be the king after that I can’t say anything.

Yeah we probably won't witness the demise of the dollar in our life times. They can always kick the can further down the road, due to people still trying to get every dollar they can get, just because their paper is even worse.

Who knows. Some catalyst might just come in our lifetimes that would start the dollar's fall. It might be bitcoin, or some other crypto, or Gold or other physical asset. One thing's for sure, the governments and institutions that are backing up dollar and fiat in general, won't let that happen anytime soon. So that catalyst would have to be pretty grave and drastic for us to see it in our lifetime.

at this time many are starting to oppose the dollar as a currency reference, many are proposing gold as a replacement because it is more stable than the dollar, and some others choose crypto as a substitute for the dollar. indeed if we look at the fluctuation of the dollar index last year is quite large

[Aying]

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?

It is basing what people prefer to use that's why usd is still dominant and not easy to replace even it is not own a highest value. a lot of transactional way in all country that uses is using usd as first option if you have it, anywhere we go even you purchase in internet they still prefer usd first. and in additional, a lot of higher business man and company use usd so there is no doubt that usd didn't loss its dominant.

[drlukacs]

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?

It will not be able to do so. The euro is considered a common currency in Europe and they can use it to exchange money anywhere in Europe, especially countries in the European Union. USD is the fiat currency of the United States and it is very valuable, because it is one of the richest countries in the world and has many trillion dollar technologies and companies, besides its currency is paired with many countries in the world and it became very important because the dollar is still very valuable now. That is why it is widely used in many countries.

[deisik]

USD is the US currency. which this country is a superpower, developed and has power over technology. most technology centers are there. and international currency is USD. and why the USD is weakening, because China has controlled the world economic market. In addition, the largest crypto in China and the Chinese government has built their crypto currency. while US refused crypto. this is one of the reasons the USD has begun to weaken.

Well.. I am not sure about it.. In my opinion, the United States Dollar is still the strongest fiat currency out there. The vast majority of the international trade is being conducted using USD. And the only currency which can offer meaningful competition to the USD is the Japanese Yen. Euro looks stronger in paper, but its purchasing power, as well as the exchange rate has gone down against the USD during the last few years

I don't know what makes you think that the Japanese Yen is a real competitor to the American dollar

Maybe, it's because the USD/JPY chart is sort of inverted with respect to the USD/EUR chart, and when you see it going up you think that it is the Yen rising? In fact, it's quite the contrary. Further, you can't actually compare the economy of the European Union with over 500 million people with Japan (140 million people or so)

Europe has a way stronger and diversified economy than Japan, and that's what ultimately counts. Japan, on the other hand, heavily depends on the US, and its currency can't be any stronger than the currency of the country it depends on (even though it might sometimes look otherwise)

[jkpj22]

Dollar is eventually gonna be replaced by Yuan (chinese currency).

Right now the better yielding fiat currency then Euro, Yen and others is Dollar. It's because of interest rates, which are currently at 1.5% - 1.75%. If you compare for example with Europe, they have negative interest rates. That means that you are punished for storing money in your bank account.

So the capital now flows into USA. That means Dow Jones will keep hitting record highs.

However the shift will come and capital will be redirected to China which will become economical powerhouse of the world. It should happen in 10, maybe 15 years, no one knows the exact date of course. But it will happen 

[romero121]

Dollar is eventually gonna be replaced by Yuan (chinese currency).

Right now the better yielding fiat currency then Euro, Yen and others is Dollar. It's because of interest rates, which are currently at 1.5% - 1.75%. If you compare for example with Europe, they have negative interest rates. That means that you are punished for storing money in your bank account.

So the capital now flows into USA. That means Dow Jones will keep hitting record highs.

However the shift will come and capital will be redirected to China which will become economical powerhouse of the world. It should happen in 10, maybe 15 years, no one knows the exact date of course. But it will happen 

The growth rate of China in comparison to America is very big. Already more and more investments were getting moved towards China from America. Weakening of USA is based on the economic policies that were framed by the present ruling government. Maybe when the change takes place with the government once again USD might gain more strength for a bigger push to lead the market.

[abhiseshakana]

Dollar is eventually gonna be replaced by Yuan (chinese currency).

Right now the better yielding fiat currency then Euro, Yen and others is Dollar. It's because of interest rates, which are currently at 1.5% - 1.75%. If you compare for example with Europe, they have negative interest rates. That means that you are punished for storing money in your bank account.

So the capital now flows into USA. That means Dow Jones will keep hitting record highs.

However the shift will come and capital will be redirected to China which will become economical powerhouse of the world. It should happen in 10, maybe 15 years, no one knows the exact date of course. But it will happen 

Have you ever heard the term seizing is easier than maintaining?
China as an expert in duplication and modification is now challenging America and trying to change the center of gravity of the world from America to China. Learning from the American strategy, China made a long-term program OBOR (One Belt One Road) as well as aggressively reducing the USD in its foreign exchange reserves and replaced with gold with the aim of reducing dependence on the US dollar.

But I think it is still difficult and even impossible for Yuan to shift the dollar considering that the portion of the Yuan Currency in Global Foreign Exchange Reserves is still very small.

http://data.imf.org/?sk=E6A5F467-C14B-4AA8-9F6D-5A09EC4E62A4

Besides that, one of the reasons why Yuan is less popular as a medium of exchange in international trade is because the value of the Yuan is pegged by PBoC (Bank of China). PBoC control over the exchange rate becomes less favored in trade transactions. PBoC can at any time weaken or strengthen currency exchange rates. Of course, it would be less profitable to hold the yuan, then the PBoC would significantly depreciate the exchange rate.

The final reason in international trade is that there are no eternal friends and opponents, only eternal interests. So to replace the dollar, the Yuan must be supported by many countries in the world, but with all the current geopolitical turmoil and international geostrategy, it will be very difficult to shift the dominance of the dollar with the Yuan.

[Twentyonepaylots]

Dollar is eventually gonna be replaced by Yuan (chinese currency).

Right now the better yielding fiat currency then Euro, Yen and others is Dollar. It's because of interest rates, which are currently at 1.5% - 1.75%. If you compare for example with Europe, they have negative interest rates. That means that you are punished for storing money in your bank account.

So the capital now flows into USA. That means Dow Jones will keep hitting record highs.

However the shift will come and capital will be redirected to China which will become economical powerhouse of the world. It should happen in 10, maybe 15 years, no one knows the exact date of course. But it will happen 

The growth rate of China in comparison to America is very big. Already more and more investments were getting moved towards China from America. Weakening of USA is based on the economic policies that were framed by the present ruling government. Maybe when the change takes place with the government once again USD might gain more strength for a bigger push to lead the market.

How cruel seeing america in fight with China. The effect of the ongoing trade war has seen some negative effects on america on which the power of USD has been lessen, businesses from america whose goods and products are mainly coming from China is in trouble also. China estate is not the same as it is on early 2000s and America's president, Trump, should know that.

[abeecrypto]

I would assume your 'strong' means dominance.
The US Dollar is one of the strongest Fiat that I know. Probably the strongest.
The USD is of very strong because it has the majority of usage with most countries; Trades and Stock exchange. Much more than Euros.
And to top that, the US economy has been booming.
I think the reason for its recent dwindling is the reduced relation with the international community.
But, a time will come when a stronger currency will surface.
Will it be Euros? I don't know. Time will tell.

[aamirsuh]

The dollar has been depreciating for years. I think if a new order is to be built, it should be done with a more limited currency. Production must continue to prevent inflation. In today's economies, inflation has a barrier to investments. Bitcoin can overcome this by having a limited number. I'm not saying it will surpass it. Just a shot.

[abeecrypto]

Yeah! I have been hearing the whole ‘Dollar is getting weaker’ thing lately. But Dollar still remains the strongest. Even after the whole US-Iran situation. It is stronger than other Fiats because it is what is more used in international trades and financial transactions. Its strength comes from its users worldwide and not its price.  They have lots of markets spread around the world. They are arguably the heavyweight in Politics and Economy. All these reflect in the strength of their currency.
Will Euro take over? I can't say. Whatever Fiat it is that will take over, it certainly won't be anytime soon.

[Shasha80]

Indeed a lot of news or articles that mention the US Dollar is getting weaker, in my opinion it's a lie news. Because it's the reality
very different. The evidence is that until now the US Dollar is still the strongest and most widely used currency for payment transactions.
Maybe because America has long controlled the world economy. It's no wonder it's so difficult for other currencies to beat the US Dollar.
Although the euro is more expensive than the US Dollar, but until now the euro has not been able to beat the US Dollar. This is strong
evidence that US Dollar is not weakening.