Topic: Over the Past 300 Years, No Fiat Money Has Escaped Going to 0 - page 2. (Read 451 times)

I don't think that after billions of dollars being input into the crypto currency every other day it will have zero value? The asset to become zero means the money will be taken out of the market. I don't see any point when trillions of worth market would be withdrawn from the blockchain just like that. Moreover, there are rising number of the crypto institutional and billionaire investors who would want it to go upwards only. I believe that many government authorities are also onto it to send the anonymous transactions. Half of the cases are coming from gangsters too. So much money flooding in the market and you think it will ever go rogue? Not sure!

This is simply wrong.The US dollar and the euro have never gone to zero.They might become close to worthless in the future,but that is highly unlikely to happen,due to their status of a legal tender.Their value can never become zero,but it will decrease for sure.The governments/central banks of the western world will never get rid of their favorite tools.
The article seems to be wishful thinking by a cryptocurrency maximalist.

Not just third world country although they are the most prevalent, take USA for example, currently they are printing a lot for the stimulus package. The only way to fix it is to curtail inflation and make the spending as much as possible tight, frugal and practical because with useless funding the money goes to waste which means that they will have to get more money because they have spent it on something stupid. Fiat is backed up by the government and in a strange way gold still holds it backing towards fiat.

and it's mostly in a third world country that the fiat money becomes hyper inflated and it eventually also become a big pile of useless paper. Our current monetary system is broken and definitely need fix.
Not to mention in the era of Internet we definitely need currecny that's transparent and not just printed paper but backed up by some reserve and that could be anything that's precious + the capability of easy money transfer.

One of the best reason there is to rely on Bitcoin is this. The moment people lose trust on paper money and know it's true value is already too late for regrets. History will repeat and paper money will be less and less time by time until it will go back to it's proper place of use, tissue, for books and newspapers etc.

Fiat will become zero if it is no longer trusted or is no longer used, based on these two possibilities that it hasn't happened now. Therefore, I am sure
that fiat will not become zero, even though as we all know the government has done a lot of printing money. This is causing hyper-inflation in
the near future and will bring down the fiat value, but will not make it zero. I still use fiat every day, so it is impossible for fiat to be zero in my opinion.
Likewise with Bitcoin, it will not be zero as long as there is still supply and demand. Therefore, don't be too anxious about the issue of fiat value
that continues to decline, because I believe the government will not allow fiat to become zero.

Fiat money doesn’t escape to zero because when fiat money became worthless it hyper-inflates and there are a lot of examples from history when fiat money hyper-inflated: Russia, Greece, Belorussia, Zimbabwe, Poland, Mexica, Brazil, Peru, Chili, Ukraine, USA and a lot of other countries at different periods of their history faced hyper-inflation and further denomination of their fiat money. Nevertheless this is the logical beginning of the theme that BTC is the best asset, because it’s finite so can’t hyper-inflate as well as drop to zero because a lot of people invested in it, believe in it and already use it as money.

US dollars and pounds are still better, although not possible for fiat to get to zero, but it can be almost worth zero. Even since some decades ago when some countries were colonized, especially African countries. Taking Nigeria that I know very well as an example, the value of Nigeria naira was stronger than US dollars at the time when they got independence and equal to British Pounds, but otherwise is the case now. Recently, the exchange rate of US dollars to naira is 380, we can see how Naira is almost worth zero if approximated. Some countries fiat currency are even worse as they were more devaluated over the past years. If the strong fiat like Pounds and Dollars are still having such issue, what are we going to refer developing and underdeveloped countries having. That is why it is just conclusive that fiat are not ways to protect someone funds as they are devaluating in design and controlled by the governments, although on purpose.

So to what I think about bitcoin, it is just one of the appreciative assets of today, people that are wise today are really moving towards buying such asset or go for good commodities like good. But as of present, bitcoin has been the most successful asset of last decade and possibly might be the most successful assets of this decade.

Yeah well, strictly speaking it is indeed false. However a pound was worth one pound of silver 300 years ago. Nowadays you only get 0.05 ounces or 0.003125 pounds, which means it has lost more than 99% of its initial value.

This is the first thing I thought when I read the topic title.

I made a brief research and found this:

https://corporatefinanceinstitute.com/resources/knowledge/finance/pound-sterling-gbp/

I once read a nice quote, similar to that, made by Chris Dixon:

There's a lot of fiat money that become worthless because of growing technology and of course, central banks are improving the fiat system and that's why many are just part of the history and no value anymore but of course fiat money will remain on our system and it will never be replaced. Many believes that Bitcoin will replace fiat currency, and for me this is just a hype because government will not allow this one and many are still not knowledgeable about bitcoin, so it wont happen in the near future.

I expected that link in the OP to be from zerohedge as soon as I saw the title of this thread--I was wrong, but this is the same argument that goldbugs have been using to hype precious metals for as long as I can remember. 

And I'm sure it's true, because no government has lasted forever and thus there's been no currency that's lasted forever.  But so what?  It's not like there's any guarantee that bitcoin has to hold any value whatsoever, much less be worth $60k/BTC.  Do I think bitcoin is going to go to zero anytime soon?  Nope.  But I also don't expect the US dollar to go to zero in the near future either (though with all this money printing, I'd say it's getting closer and closer as time goes on).

Fiat money can only go to zero if the government fails. We have seen few examples already like Zimbabwe or Somalia or Venezuela. These fiats have nearly went close to zero so they had to adopt different mechanisms like crypto adoption or completely discard their own currencies and adopt a foreign currency. So fiat currency is not out of such risks.

But does that mean crypto can be an alternative? I see this not happening because cryptos are not controlled by any country. So no matter how bad the fiat system is, I don't see them adopting cryptos in any way!

even if it had to return to the intrinsic value of fiat to Zero then the barter system would become commonplace. not only in the past 3 centuries, even in the future fiat is not sure when cryptocurrency is a legal medium of exchange and is used globally. it is only a matter of exchange, both fiat and money in the world of different types and values remain in the same function. So when we look back, the barter system was introduced long before the first century of world warfare. fiat appeared when missionaries discussed in the pyramids of ancient egypt. to give birth to a medium of exchange in the form of banknotes.

Actually they have, frequently they just rebrand the coin as an acknowledgement of that. The fact that it does not reach "absolute zero" is meaningless. In practice "0.00000000000001" is zero and that is happening in Venezuela, about to happen in Turkey and happened no more than a few decades ago in Germany.

https://www.bbc.co.uk/bitesize/guides/zpctyrd/revision/6#:~:text=The%20German%20currency%20lost%20virtually,million%20marks%20by%20November%201923.

The national money of states cannot depreciate to zero, since even with the highest inflation in the country there are material benefits that provide this money.
It is very rare for states to declare a default, but this is more due to the inability of the state to fulfill international financial obligations. Other states prefer not to allow this, as it means that all previous debts of this state must be written off.
Under certain circumstances, a cryptocurrency may well drop to zero in value.

The thing with currencies is that they are not connected to any commodity like gold. So once people lose trust in a fiat currency than the value will go down to 0. The same could happen to any crypto currency. But one good thing of fiat currencies is that even if the money becomes worthless there will be a new currency eventually. And the exchange rate for the new currency shouldn't be 0.

it's still going to be the same if the digital currency in CBDC can be minted all they want. the value will still deflate and goes zero. but our data will be collected with this CBDC which there will be another revolution to be done against it. the wealthy people who govern this world will still be in their full control that even the waters in the river are going to be owned by them.  it's better to still have the cash and cryptocurrency.

Fiat money is simply a symbol of belief. As long as there are people who believe in fiat, it will still have value. Just imagine that if bitcoin is not reliable and no one trusts it, its value will remain zero. Everything in this world is impermanent. It can change, reshape, return to its most basic form, or even vanish from this world. But from my point of view, even though many people disagree with the benefit of fiat money, other parts of the world still concern fiat as an important tool for a variety of aspects. And since the world has flattened and become the only part, fiat even plays a more important role.

The existence of Bitcoin and cryptocurrencies are created in order to against not just the government but also inflation which is an intrinsic characteristic of cash. And with this new alteration, people will have more choices but it is not necessary that this new form of money will replace or destroy fiat. From my perspective, they will co-exist in this mad world and together, they will bring a lot of advantages and innovations to humankind.

Be flexible guys. Both fiat and cryptos have their own strength and weakness

When government doesn't use fiat money as legal tender, fiat money will going to zero.

But right now, I find it quite impossible fiat money can going into zero because we're using it for daily and every time to buy food. In the future government will began to develop digital currency of central bank (CBDC) it also backed with real fiat money 1:1 , the difference is only digital. Many traditional bank would collapse from this, but not all.

Even fiat money will lose it value due to inflationary as government keep printing new money to cover its debt, we still need it to pay micro payment and anything.

Bitcoin is the future, but it can't replaced fiat money. IMO we will use digital coin backed with fiat money in the future since government has full control and support it.