What makes a Fiat worthless? - page 2.

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Quote from: doomistake on November 01, 2019, 03:04:36 AM

Quote from: gunungkembar on November 01, 2019, 02:44:40 AM

conditions that make us worthless I feel the influence of inflation from fiat money, printing money with a very large amount can make fiat become worthless like that.

Due to monetary policy that the Government have, they are freely to print and devalue fiat easily, even though we want to takeover and take care of this thing, we can't messed up with the Government in this kind of matter cause you know guys what will happen, we could end up in bars. Inflation is a disaster of fiat currency since the very first time, when things got their value and people started to trades commercial products.

Technically, fiat is not that useless, it is that the Government makes it looks and really useless because of their power creating more of it, Governments are worthless, in my jurisdiction.

Only the issuer makes it worthless or no value at all. They can demonetized it, or announced that a certain denominations will no longer be allowed as tender payments etc. Yeah, its the government that really makes it useless , they have the power to create and destroy it.

Inflation weakens it, lower its value or purchasing power.

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Quote from: gunungkembar on November 01, 2019, 02:44:40 AM

conditions that make us worthless I feel the influence of inflation from fiat money, printing money with a very large amount can make fiat become worthless like that.

Due to monetary policy that the Government have, they are freely to print and devalue fiat easily, even though we want to takeover and take care of this thing, we can't messed up with the Government in this kind of matter cause you know guys what will happen, we could end up in bars. Inflation is a disaster of fiat currency since the very first time, when things got their value and people started to trades commercial products.

Technically, fiat is not that useless, it is that the Government makes it looks and really useless because of their power creating more of it, Governments are worthless, in my jurisdiction.

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conditions that make us worthless I feel the influence of inflation from fiat money, printing money with a very large amount can make fiat become worthless like that.

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Quote from: Wysi on October 26, 2019, 11:27:40 AM

We have come across so many national currency becoming worthless and recently we have heard the news of barter system in Zimbabwe due to the fall in the value of national currency but what really makes the Fiat worthless? Is it corruption or war or national economical crisis? Or the National GDP which makes it fall?

It would be natural for me to have a economic crisis as we know that the money we use to spend Fiat is only a legal tender, because there's no real actual price of any paper or coin we are holding if the government will not issue a value on it. Economic crisis and the GDP is relatively related to each other. I think we can't ignore the fact that cryptocurrency is one of the reasons right now. Time will tell.

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Quote from: syamster on October 29, 2019, 07:59:27 PM

Quote from: vintages on October 29, 2019, 03:29:40 PM

From the three points you mentioned, I don't think corruption has any thing to do with it. However, economic status of a country can also make a country currency worthless too.
Also, another vital cause I feel that can influence a currency to been worthless is how high or low other country depend on it and also how much commodity can that fiat be spent on. A good example is the USD dollar.

these two factors play a great role in the inflation of a country's currency, but the most important thing in the inflation is corruption, as the corrupt leaders are not sincere with their countries and they always seek their own interest in any scenario, these leaders always try to hoard money from the country's money which affect the economy badly, so the developmental process in the country stops because of the weak economy which directly causes the inflation in fiat.

Well, in general, you are a little mixed up. Inflation is an increase in the price level of goods and services for a long time, and a sharp decrease in its value is called devaluation. And it can also be influenced by such factors as the excess of imports over exports, the panic of the population (when foreign currency is massively bought up and thereby the national currency collapse is provoked); trade relations between countries (geopolitics) and other factors. Some have already been mentioned.

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Quote from: vintages on October 29, 2019, 03:29:40 PM

From the three points you mentioned, I don't think corruption has any thing to do with it. However, economic status of a country can also make a country currency worthless too.
Also, another vital cause I feel that can influence a currency to been worthless is how high or low other country depend on it and also how much commodity can that fiat be spent on. A good example is the USD dollar.

People can't show their money which was earned through something illegal,so they are not going to pay taxes for it,we know tax is the main thing for an stronger economy which later leads to the losing of purchasing power as you stated.

syamster

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Quote from: vintages on October 29, 2019, 03:29:40 PM

From the three points you mentioned, I don't think corruption has any thing to do with it. However, economic status of a country can also make a country currency worthless too.
Also, another vital cause I feel that can influence a currency to been worthless is how high or low other country depend on it and also how much commodity can that fiat be spent on. A good example is the USD dollar.

these two factors play a great role in the inflation of a country's currency, but the most important thing in the inflation is corruption, as the corrupt leaders are not sincere with their countries and they always seek their own interest in any scenario, these leaders always try to hoard money from the country's money which affect the economy badly, so the developmental process in the country stops because of the weak economy which directly causes the inflation in fiat.

vintages

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From the three points you mentioned, I don't think corruption has any thing to do with it. However, economic status of a country can also make a country currency worthless too.
Also, another vital cause I feel that can influence a currency to been worthless is how high or low other country depend on it and also how much commodity can that fiat be spent on. A good example is the USD dollar.

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Quote from: yoseph on October 26, 2019, 11:48:46 AM

Quote from: Wysi on October 26, 2019, 11:27:40 AM

We have come across so many national currency becoming worthless and recently we have heard the news of barter system in Zimbabwe due to the fall in the value of national currency but what really makes the Fiat worthless? Is it corruption or war or national economical crisis? Or the National GDP which makes it fall?

Every currency is tied to the the economy of that specific country so when factors like employment, inflation, interest rates, banking and other micro economics factors are on the negative side of things it makes the currency fall. This is specifically my opinion of the matter.

These are the most common factor that would shrank the worth of any fiat currency in the world plus you include the corrupted people in that specific country and you will finally gonna see the worst of a country.

Inflation rate of a fiat currency starts to plummet once the central bank keep making a paper bill. Everything is connected in the countries economic development.

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The national currencies of various states can depreciate, which is called inflation. Inflation in a particular country always, as a rule, arises due to the inept management of economic and even political processes in the state by the government or intentional narrow-minded actions of a number of state officials. If fiat is used correctly, it only has a beneficial effect on the economy of the state. Therefore, it cannot be said that fiat is already outdated, it should be changed to other financial systems.

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Quote from: riso2015 on October 29, 2019, 04:20:06 AM

Quote from: Colt81 on October 28, 2019, 08:53:52 AM

Quote from: Wysi on October 26, 2019, 11:27:40 AM

We have come across so many national currency becoming worthless and recently we have heard the news of barter system in Zimbabwe due to the fall in the value of national currency but what really makes the Fiat worthless? Is it corruption or war or national economical crisis? Or the National GDP which makes it fall?

I could say that Fiat is really worthless in cases like Zimbabwe that their national currency became so useless that most of their savings was destroyed and left them bartering for daily needs due to inflation, that is why governments should prevent this kind of incident because it is not good for the economy and individuals.

That's because their country's economy is hit by inflation, which makes their currency lose value. The government must be able to limit the circulation of currencies so that inflation does not occur. If you use Cryptocurrency, we will be safe from inflation.

Every countries are being hit by inflation, and the countermeasures for this will depends on how intelligent is their Government to handle this kind of scenario, the more the economic growth, the more people are spending their money, the higher chances they could trigger the inflation, via fiat, of course. Cryptocurrency are waving to the Government to take actions for this but they chose to ignore it because of their pride.

Let's witness how much they are willing to fall before they adopt bitcoin and other cryptocurrencies to cure inflation.

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Quote from: Wysi on October 26, 2019, 11:27:40 AM

We have come across so many national currency becoming worthless and recently we have heard the news of barter system in Zimbabwe due to the fall in the value of national currency but what really makes the Fiat worthless? Is it corruption or war or national economical crisis? Or the National GDP which makes it fall?

All these that you mentioned are some of the reason why the fiat value of a country becomes worthless, but if you look at it so deep, you will find out that one of the worst enemy of currencies is actually inflation, inflation is a killer and until every countries learn to control inflation in their country before I really think that any of them can get it right.

Corruption is another deadly thing, when there is corruption, money tend to flow too much into the hand of those corrupt leader, which they spend it on areas that would not benefit or develop the country, so if there is a way that a country can curtail its corruption level, then there is possibility that the value will still appreciate. What is killing Zimbabwe is purely corruption and inflation which they need to work on seriously.

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Quote from: riso2015 on October 29, 2019, 04:20:06 AM

Quote from: Colt81 on October 28, 2019, 08:53:52 AM

Quote from: Wysi on October 26, 2019, 11:27:40 AM

We have come across so many national currency becoming worthless and recently we have heard the news of barter system in Zimbabwe due to the fall in the value of national currency but what really makes the Fiat worthless? Is it corruption or war or national economical crisis? Or the National GDP which makes it fall?

I could say that Fiat is really worthless in cases like Zimbabwe that their national currency became so useless that most of their savings was destroyed and left them bartering for daily needs due to inflation, that is why governments should prevent this kind of incident because it is not good for the economy and individuals.

That's because their country's economy is hit by inflation, which makes their currency lose value. The government must be able to limit the circulation of currencies so that inflation does not occur. If you use Cryptocurrency, we will be safe from inflation.

The problem with fiat is that it is mainly governed by greed and double standards. I can even imagine of a fiat system that could work in the long term and is more or less sustainable. However, the current fiat system is marred by a lot of controversies such as overprinting and the like. Crypto is not on that kind because it is not governed by anyone or anything except mathematics which is always accurate and right.

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Quote from: SummerBliss on October 28, 2019, 09:31:00 AM

Fiat become worthless in the case when inflation rise to highest level that you can't exchange it for any item or the government declare the currency invalid to be used in economic system and you can't use it in the country.Because fiat is the main financial source of country and it can be worthless only due to political causes of country.

fiat currency is worthless or in effect I think it is impossible if indeed it happens certainly the country has been lost or destroyed because the economic system is absolutely essential for a country if inflation occurs and the fiat currency is still valid and has a value or low different from the crypto currency its development it depends on the investors themselves and the developments that no one can find out

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Quote from: reality18 on October 28, 2019, 08:34:41 PM

Quote from: Visbay on October 28, 2019, 03:55:13 PM

Quote from: SummerBliss on October 28, 2019, 09:31:00 AM

Fiat become worthless in the case when inflation rise to highest level that you can't exchange it for any item or the government declare the currency invalid to be used in economic system and you can't use it in the country.Because fiat is the main financial source of country and it can be worthless only due to political causes of country.

No I think it is not because of politics but there are some other issues in crypto people are in search of some good way to make payments that could save their time and also give them chance to get fraudless payment so crypto has provided this to them now payments can be done even if you are at home or at work and it made our life test good because of reliable use of crypto.

Crypto has its own benefits it brings to the people especially the convenience that comes with the usage of crypto in payment across borders cannot be underestimated. However, the fiat has its own uniqueness. The fiat can lose is value by the activities of the people and the decisions made by the government of the people in that country.

Fiat doesn't lose value because of the activities of the people and decision of the government. Inflation is in nature of fiat currencies and that is how the fiat currencies lose its value. Cryptocurrency is better than fiat currency because instead of inflation, it has deflation where in its value gets higher over the time which is in favor for people who would love to keep the value of their money.

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Quote from: Colt81 on October 28, 2019, 08:53:52 AM

Quote from: Wysi on October 26, 2019, 11:27:40 AM

We have come across so many national currency becoming worthless and recently we have heard the news of barter system in Zimbabwe due to the fall in the value of national currency but what really makes the Fiat worthless? Is it corruption or war or national economical crisis? Or the National GDP which makes it fall?

I could say that Fiat is really worthless in cases like Zimbabwe that their national currency became so useless that most of their savings was destroyed and left them bartering for daily needs due to inflation, that is why governments should prevent this kind of incident because it is not good for the economy and individuals.

That's because their country's economy is hit by inflation, which makes their currency lose value. The government must be able to limit the circulation of currencies so that inflation does not occur. If you use Cryptocurrency, we will be safe from inflation.

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Quote from: Visbay on October 28, 2019, 03:55:13 PM

Quote from: SummerBliss on October 28, 2019, 09:31:00 AM

Fiat become worthless in the case when inflation rise to highest level that you can't exchange it for any item or the government declare the currency invalid to be used in economic system and you can't use it in the country.Because fiat is the main financial source of country and it can be worthless only due to political causes of country.

No I think it is not because of politics but there are some other issues in crypto people are in search of some good way to make payments that could save their time and also give them chance to get fraudless payment so crypto has provided this to them now payments can be done even if you are at home or at work and it made our life test good because of reliable use of crypto.

Crypto has its own benefits it brings to the people especially the convenience that comes with the usage of crypto in payment across borders cannot be underestimated. However, the fiat has its own uniqueness. The fiat can lose is value by the activities of the people and the decisions made by the government of the people in that country.

jrrsparkles

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Quote from: Visbay on October 28, 2019, 03:55:13 PM

Quote from: SummerBliss on October 28, 2019, 09:31:00 AM

Fiat become worthless in the case when inflation rise to highest level that you can't exchange it for any item or the government declare the currency invalid to be used in economic system and you can't use it in the country.Because fiat is the main financial source of country and it can be worthless only due to political causes of country.

No I think it is not because of politics but there are some other issues in crypto people are in search of some good way to make payments that could save their time and also give them chance to get fraudless payment so crypto has provided this to them now payments can be done even if you are at home or at work and it made our life test good because of reliable use of crypto.

What? Its about the inflation on fiat,your reply seems nothing related to the topic.

Fiat will not be completely worthless even if the inflation keeps increasing every year but when it goes our of some level then the econmy will face huge crisis and the factor depends on bad financial management by government and also other factors like losing natural resources so they depend more on the import which makes them to lose their currency.

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Quote from: Bitcoin Seller on October 28, 2019, 03:12:03 PM

Quote from: jossiel on October 26, 2019, 06:20:16 PM

IMHO, Hyper inflation.

That's the cause of why fiat money becomes worthless in some countries like Venezuela. And those what you have mentioned triggers the economic status of that country which results to HI. A war will totally wipe out a lot of resources on that involved area and printing of more cash will also contribute to it.

I have never been to Venezuela, but the other day, I saw a documentary film about life there. It was a real shock: people carry money on trays! They do not even count it when they buy something in stores: they use scales! How can it be - a kilo of paper money for a kilo of apples? Naturally, it is almost worthless there now, and people start turning to cryptocurrency simply to survive.

The same is the scenario with few African countries. This is caused by the invading of wealth by other countries. From my learning most of the African countries have lost their natural resources which is the one that provides wealth. Some first world countries in the name of treaties sign it and take away the resources and profiting. Another reason is the corrupt governments which just support it without proper research.

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Quote from: Wysi on October 26, 2019, 11:27:40 AM

We have come across so many national currency becoming worthless and recently we have heard the news of barter system in Zimbabwe due to the fall in the value of national currency but what really makes the Fiat worthless? Is it corruption or war or national economical crisis? Or the National GDP which makes it fall?

Current banking system, governments' politics and nonstop money printing makes fiat worthless. We can also add another reason to these: When money gets devalued, prices on products increases while wages stay the same or even worse, decreased. And even if situation gets positive and money gets a little bit valued, prices are still left high. High once - high forever, something like this.
To my mind we need something with fixed value which can't be faked like cryptocurrencies for example in order to prevent massive inflation. They make debts that we have to pay. Taxes are already enough, we don't have to pay another additional fees, money printed and used by government and that loan payed by us, that's shame.

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