After World War II, the system worked by ising 35USD for every ounce of gold stored in the depository. Gold thus physically guaranteed and covered the value of the dollar, and other world currencies were linked to it. The advantage of this arrangement was the real impossibility of issuing new and uncovered money, which prevented it from being devalued, or inflation
This changed definitively on Friday, 13.08.1971, when US President Richard Nixon abolished this so-called standard . Yet the USD has remained the main currency of world trade, but is no longer covered by gold, but only by the confidence of those who use the USD. The newly issued coins no longer contain gold or silver, and the banknote no longer equals the gold voucher deposited in the depository. And when money is no longer covered with gold, new and new and NEW can be issued, and that will not change as long as those who use it trust that money. So if we compare currencies and cryptocurrencies, we will find that both of these systems are based on exactly the same basis. And that is the demand and belief of their users in their value.And if we look at the evolution of their value over time, we will see two completely different curves that will tell us verypreciselyabout the basics of the functioning of both of these financial systems.
*information from publicly available sources, link to articles in the resources section