Questions tagged [fiat currency]

KpopStarlet Tue Nov 05 2024 | 7 answers 1283

The US switched to fiat currency due to various reasons. Primarily, the shift was motivated by the need for a more stable and flexible monetary system. Fiat currency, backed by the government and not tied to a fixed asset like gold, allows for easier management of economic fluctuations and provides greater control over monetary policy. Additionally, the transition away from a gold standard enabled the expansion of the money supply to meet the growing demands of the economy, facilitating economic growth and development.

CosmicDream Mon Oct 07 2024 | 7 answers 1120

Could you please elaborate on the process that a bookmaker undertakes to convert Bitcoin into fiat currency? Are there any specific steps or intermediaries involved in this conversion? How does the bookmaker ensure the security and stability of the transaction? Additionally, are there any fees or charges associated with this conversion process, and if so, how are they calculated?

DondaejiDelightfulCharmingSmileJoy Sat Sep 28 2024 | 5 answers 1306

I'm curious, what exactly backs the US dollar? Is it gold or some other tangible asset, or is it simply the faith and credit of the United States government? I understand that the US dollar is the world's reserve currency, but I'm not entirely clear on what gives it its value and stability. Can you explain in more detail what supports the value of the US dollar and what role the Federal Reserve plays in maintaining its stability?

Federico Thu Sep 12 2024 | 5 answers 1000

Excuse me, but could you elaborate on the concept of a currency having no value? Typically, currencies are designed to represent a store of value and a medium of exchange. When we speak of a currency having no value, are we referring to a situation where it is no longer accepted as a form of payment or is no longer backed by a tangible asset? Or is it a case where the currency's value has depreciated to such an extent that it is essentially worthless in the market? It would be interesting to explore the various scenarios that could lead to a currency being deemed as having no value.

SsamziegangSerenadeMelodyHarmony Mon Sep 09 2024 | 5 answers 1252

Could you please clarify which cryptocurrency and fiat currency you're specifically referring to as the "biggest" in the world? Is it measured by market capitalization for cryptocurrencies, or perhaps by circulation or value for fiat currencies? Understanding the criteria will help me provide a more accurate answer to your question.