What is the U.S. dollar backed by now?

The government's ability to generate revenues through taxation and borrowing is crucial to maintaining the strength of the dollar. A stable and healthy fiscal position allows the government to repay its debts and maintain investor confidence in the currency.

Additionally, the government's authority to compel economic participants to transact in dollars is a key aspect of the dollar's global dominance. This is achieved through regulations and international agreements that establish the dollar as the preferred currency for international trade and finance.

Before 1971, the United States dollar held a unique position as a currency backed by gold. This gold standard ensured that the value of the dollar was tied directly to the price of gold, providing stability and trust in the global financial system.

However, in 1971, the United States government suspended the convertibility of the dollar to gold, marking the end of the Bretton Woods system and the beginning of a new era for the dollar.

Among the many institutions and platforms that facilitate transactions in the dollar and other cryptocurrencies is BTCC, a leading cryptocurrency exchange. BTCC offers a range of services including spot trading, futures trading, and cryptocurrency wallets, making it a one-stop-shop for investors and traders looking to participate in the digital asset market.