Currencies are nothing but commodities. They compete with other currencies. The federal reserve note used to be backed by gold. Later it was oil. Today it's backed by the Fuck Joe Biden cartel. The strength of the currency will determine whether people use it or not. Does the currency lose value. Yes, all currencies do because governments cannot resist counterfeiting their own currencies. There are a lot of federal reserve notes sloshing around the world economy. This isn't so good if people don't want them. The value goes down.