Fiat Currency Always Fails - page 15.

Markyway88

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Quote from: BobK71 on April 03, 2018, 03:42:24 PM

See:

There Is No Escaping History. Fiat Currency Eventually Fails.

Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.

I have my own critique of gold/silver standards, but that's another issue.

The article stated that fiat currency always decrease everytime. Maybe in a couple of decades or in a century. The value of money depends upon the gold and it is a fact that countries all over the world is backed up by dollar in order for their currency to have value. Since we have a scarce resources in gold, paper money will also lessen its value time by time.
I don't what will be the next if fiat currency will totally lose its value and weaken the economy but probably, it will lead im hyperinflation where the value of fiat becomes null.

Hydrogen

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That is a great read. Exactly the type of publicity and information crypto currencies need publicized in order to justify their value. I hope that piece counts as zerohedge publishing a pro crypto article, as their reputation for being anti-crypto has always appeared most undeserved to me. I've always liked ZH as one of the few financial and economics commentaries with something resembling an independent and reliable slant to its content.

Great history lesson there. I never realized the history of fiat currencies was so shady. I knew about zimbabwe and germany's hyperinflationary issues but had no clue there was a history and strong precedent for printed money being prone towards that end result. There is an error there about the federal reserve being "government controlled" it is in fact owned and controlled by the private sector, probably by bankers.

Other than that, it is possible that everything in that article should be standard curriculum taught in classrooms but is being repressed or censored to some degree. Its difficult to prevent history from repeating itself, when people remain unaware of historical precedents.

leonair

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"Paper money eventually returns to its intrinsic value: zero" -Voltaire

Maybe Voltaire was right in a sense, but as I see if we relate it with the Cryptocurrencies itself that currently backed by a dollar market capitalization it's hard to believe that it would return to nothing nonetheless something we don't expect will occur in the future that will make it useless. IMO this eventually may happen if there would be an another World War as the modern technologies will surely wipe out the existence of mankind and when that time comes those survivors will all be nature dependent and the value of each FIAT money will be 'zero'.

MakeMoneyBtc

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I agree that this whole stuff withis paper money is complicated since there can be printed unlimited paper's of money and eventually it will become worthless same as the articles shows what happened with silver and iron coins. I think something digital is going to replace paper money and that is going to happen very soon from my opinion, probably in until 2050 paper money should be replaced. It is going toto be a very complicated process since there are so much paper money in the whole world but I think slowly people are going to get used with it because that is the future. Everything progresses in time, cars,technology,medicine and the same thing will happen with paper money, at a certain moment they will disappear

marinomario

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In my opinion As long as fiat money still serves as a medium of exchange, it will always be needed by the people of today and therefore it will always have a function as an asset to all of us. although the best value-keeping asset is gold but even though gold is quite liquid, it is no longer money that serves as an intermediary.

MoonIsBlue

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Quote from: aoluain on April 03, 2018, 04:43:38 PM

Very interesting article and by the sounds of things we may be heading for
some trouble id the US keeps the printing presses moving.

I dont know enough of economics but these recent 'trade war' rumours
could have an effect on the world economy.

What will be the result of over printing the $ and a trade war be?

Hyperinflation, you'd get a venezualian situation or post WW1 Germany. Its food stamps and no jobs when that happens. But in context of Bitcoin, will likely do very fucking well.

aoluain

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Very interesting article and by the sounds of things we may be heading for
some trouble id the US keeps the printing presses moving.

I dont know enough of economics but these recent 'trade war' rumours
could have an effect on the world economy.

What will be the result of over printing the $ and a trade war be?

Barbarian

sr. member

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Quote from: BobK71 on April 03, 2018, 03:42:24 PM

See:

There Is No Escaping History. Fiat Currency Eventually Fails.

Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.

I have my own critique of gold/silver standards, but that's another issue.

The problem is that now all the money issued by countries is fiat after the United States went out of the gold standard in 1971 which means that if the main fiat currency around the world the dollar were to collapse that could in theory collapse the entire economy of the world.

BobK71

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Leading Crypto Sports Betting & Casino Platform

See:

There Is No Escaping History. Fiat Currency Eventually Fails.

Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.

I have my own critique of gold/silver standards, but that's another issue.

Topic: Fiat Currency Always Fails - page 15. (Read 2101 times)