History and origin of Forex Marketplace

A person who is deciding to invest in Forex must first have a little concept about from where it came and how it grew to this extent. Thus the history follows below. Back in the 1870’s, everybody had the concept that gold was necessary for every paper currency. People of that time thought that the currencies circulating around the globe can be stabilized by fixing them at a particular level as the cost of gold. Thus came the idea of backing currency with gold and was referred to as the gold exchange standard. This concept started getting implemented. The result was the downfall of the gold stock as this idea failed to satisfy in real life though it was perfectly fine when sketched theoretically.

This result was prominent during the start of World War 2. Most European countries concentrated on buying projects for their military and in order to do so, they started involving gold in the procedure to support their currency. As a result, the standard of gold dropped drastically but the financial value of gold was not lost and was still considered as one of the most precious metal.

Then emerged the Bretton Woods System in the year 1944 where the main idea was all currencies will not be backed by gold except the US Dollars. The world decided the US Dollars to be their currency reserve and exchange rates of currencies thus got fixed accordingly. This system came to an end in 1971 with the USA declining to exchange gold for their dollars. This situation led to the introduction of foreign exchange rates which was gradually accepted in the 70’s. Then it was the floating Forex but later the scenario changed to the present situation where the Forex grew its base as the exchange medium. All this was manual work then, it was only in the mid 90’s that it became electronically available to people. Forex started using qprofit system to help users with trading and ethereum code, or crypto code to execute everything.