Why US Dollar is universal currency for exchange? How Bitcoin is its enemy?

The dollar’s value is supported by the relative strength of the US economy. It is the reason why the US dollar is the most powerful currency in the world. The United States had $1,671 billion in circulation as of 2018. It is estimated that up to half of that amount is in circulation abroad. 2 Many of these bills can be found in former Soviet Union countries and Latin American countries. They are frequently used as hard currency in everyday transactions.

The dollar is king in the foreign exchange market. The US dollar accounts for approximately 90% of all forex trading. According to the International Standards Organization List, the dollar is one of 185 currencies in the world, but the majority of these currencies are only used within their respective countries. When forex traders discuss the “strongest currency,” they usually mean a currency that has a high exchange rate with the US dollar.

The dollar has been the world’s most important currency since the end of World War II. It is the world’s most widely held reserve currency and the most widely used currency for international trade and other transactions. The dollar’s centrality in the global economy provides some benefits to the United States, including the ability to borrow money abroad more easily and to extend the reach of US financial sanctions. However, some experts argue that dollar dominance comes at a cost. Increased foreign demand for US bonds raises the dollar and reduces the competitiveness of US exports, resulting in trade deficits and job losses.

Bitcoin supporters frequently emphasise the currency’s decentralised nature. It is not controlled by central banks, unlike traditional fiat currencies such as the US dollar. It is, we are told, a “currency” of the people, by the people, and for the people.” In the United States, 10% of the wealthiest people now own 70% of the country’s total wealth. Financial inequality reigns supreme across the country.

Visa can handle over 70,000 transactions per second, whereas Bitcoin can only handle a few dozen. Even though there is plenty of time, societal norms will take time to develop. It took Congress 15 or 20 years after the introduction of the credit card to enact laws that acknowledged the existence of that technology. There is no doubt that cryptocurrency is a game changer, but it will not replace the US dollar in the near future. Anything is possible in the long run, but expect government opposition.”

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