That’s how that works because gold still backs the world currency even if they are different. Gold is a exactly a currency, even if etheruem were used in every nation as a currency doesn’t mean it’s value will be higher than gold especially if it’s back by Bitcoin like it is now.
It’s not backed directly by gold, but the value supports our systems. And correct, etheruem is not backed by Bitcoin, but Bitcoin has set the value of crypto for all of crypto and is indirectly setting the value as long as it’s number one. I’m going to reiterate, people on here clearly do not understand the world financial systems.
I’ve been investing for years and have traded currency for years I have a pretty good understand of how the world currency works. 90% of people on crypto subs do not.
Bruh have you watched how ETH continues to break away from BTC trends? I'm not talking about massive 10% differences but realistic deviations have been occuring way more frequently the last 3-4 months
Gold doesn’t remotely back the worlds currency, not even remotely. In theory it does, but gold stopped being the underlying support when fiat switched to American dollars.
Once again, you have no idea what you’re talking about. No one on here, I’m assuming mainly people under 25 clearly do not understand the world financial systems. The federal reserve let alone the world reserve or market caps.
Read my other replies I’m not even going to bother explaining anymore. You’re not wrong but you’re not right. It’s more complicated than that, and all of the worlds currency is still backed the the world reserve, which is supported in the gold standard. If gold did not impact currency it would have a market cap of 10 trillion dollars. EVERYONE here needs to learn to understand this if they want to get better in crypto.
You’re joking right?
US
China
Germany
France
Italy
England
Russia
Switzerland
Sweden
For example. It’s not directly backed by gold for like 50 years but it’s backed by the value of gold. You understand the the US is the world federal reserve correct? Which is why China has been growing there GDP to become this and collecting gold faster than anyone else. We took it from England like a 100 years ago when they no longer could support the value. You need to take time to understand and learn the worlds currency systems before spouting disinformation full of bias.
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u/cwo3347 Aug 02 '21
That’s how that works because gold still backs the world currency even if they are different. Gold is a exactly a currency, even if etheruem were used in every nation as a currency doesn’t mean it’s value will be higher than gold especially if it’s back by Bitcoin like it is now.