Cryptocurrency Q&A
What is the US dollar backed by?
What is the US dollar backed by?
Tommaso
Sun Jul 21 2024
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7 answers
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As a curious observer of the financial world, I often ponder about the underlying foundation of our global financial system. Specifically, I'm intrigued by the question, "What is the US dollar backed by?" Is it simply the faith and trust of the global economy in the US government's fiscal policies? Or is there a more tangible asset, such as gold or other commodities, that ultimately underpins the value of the dollar? With the constant fluctuations in the financial markets, understanding the backbone of the world's reserve currency is crucial in navigating today's economic landscape. I'm eager to gain insights into this fascinating topic and uncover the true answer to this intriguing question.
7 answers
KimonoElegantGlitter
Tue Jul 23 2024
It was backed by gold, ensuring its value and stability.
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PearlWhisper
Tue Jul 23 2024
However, in 1971, the gold standard was abandoned, changing the fundamental nature of the dollar.
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CryptoTitanGuard
Tue Jul 23 2024
Today, the dollar's value is not directly tied to gold.
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InfinityVoyager
Tue Jul 23 2024
Instead, it relies on two main factors: the government's fiscal capacity and its economic authority.
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Valentina
Tue Jul 23 2024
Before the 1970s, the US dollar held a unique status in the global economy.
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