The foreign Exchange Market is a global decentralized market for trading of currencies. This market determines foreign exchange rates for every currency. It includes all aspect of buying, selling and exchanging currencies at current or determined prices in terms of trading volume, it is by far the largest market in the world.
The Forex(FOReign EXchange) began towards the late 1800s, the Gold standard was introduced. This means every currency in the world pegged their local currency to the amount of Gold they have in their reserve. So the more Gold you have in your reserve as a country the more value in your currency command. Before this introduction, precious metal like Gold, Silver, Copper, Lead were used as a form of payment/currency.
In the mid 1900s(1947 to be precise ), the International Monetary Fund(IMF) began to use the Us Dollar to price Gold and then an ounce of Gold was about $35, as of the time of writing this article, an ounce of Gold is around $1772 we can deduce the fact that the price of Gold has risen from the $35 in 1947 to around $1772 in 2020. From me to you,investment in Gold, is it worth it...?
Like i said earlier on, IMF came into the market and pegged the price of Gold to the US Dollars. In actual fact, this made the entire economies across the world to be set on dollar standard as we have it today(though Euro and Pounds are fighting for this position, but the dollar is still on the lead). That was how the US Dollar beacame the new global reserve Currency which replaced Gold after the Bretton woods agreement was signed at the end of the World War 1.
However, the bretton agreement could not last for long and it broke during the early 70s.This led to the Foreign Exchange Market we have Today!
Now in the Era of Cryptocurrency like Bitcoincash with Quicker Confirmation and transaction time compared to it's predecessor Bitcoin, There are some Lingering Question waving round the Mind;
Could Cryptocurrency actually be the last Evolution of Money?
Can cryptocurrency survive independently without fiat currency?
Does Cryptocurrency have the capacity to sustain the value of an Asset due to its Volatile Nature?
Its fluctuating nature;Merit or Demerit?
Can Cryptocurrency Ever be a National Asset/currency...what woud be its Effect?
Can Cryptocurrency ever be Used as a Global Reserve Currency?