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?
There are a number of reason for a national currency to become worthless because these are not backed by gold or silver and in the case of Zimbabwe and other similar countries they are hit by crisis because of bad economic policies by the government and in time it will start affecting them and inflation will reach a point of hyperinflation, in short if they start printing more money these problems will happen and national debt will be also another major factor. 
Topic: What makes a Fiat worthless? - page 4. (Read 2198 times)
Honestly, inflation is the main reason for me. Looking back I realize my father bought his first house for less than 2000 dollars, 20 years after the fact I am looking at that same house worth around 100k right now, nothing should be worth 50x what it used to be in 20 years time but that is not the housing market only, looking at the grocery goods for example I realize most of them made at least 20x and almost all of them made over 30x increase in the price.
So, it is not that goods become more expensive, it is the fact that money worth less. That is why I feel like if I own crypto I would be saved from that, I feel like bitcoin is exempt from inflation somehow (it is not, it is just goes up and down but so far in 10 years it always gone up in long term) which is why I feel like fiat is worthless.
So, it is not that goods become more expensive, it is the fact that money worth less. That is why I feel like if I own crypto I would be saved from that, I feel like bitcoin is exempt from inflation somehow (it is not, it is just goes up and down but so far in 10 years it always gone up in long term) which is why I feel like fiat is worthless.
Inflation is a normal thing in fiat money but it should stay at 1% or 2%. Such currency is healthy and will inflate at a slow and steady rate. In 50 years everything will be almost twice as expensive but 50 years is a lifetime of a working generation. The new one won't feel that 1% a year increase.
Hyperinflation kills currencies but it doesn't come out of nowhere. The country needs to face other problems to develop it.
This thing just will be happened to centralized system, when they are managing something and there is some people who don't like it or even they try to irratate it then the system will never be success. I agree wheb some people above have a thinking that is just because inflation, have you know what the causes the inflation comes? Yeah it is just because the government can't do managed their economic well.
I have no idea to tell what the theory to create a money fiat honestly. Because in my opinion, the money should be run well, I mean the circulation of it will be start from bank who create it and be using by its citizen and then it will be back to bank again and that is good circulation. But the hyper inflation comes it is not like that, the bank will make a lot of money so as the price of stuff goes higher, because its price will depend on supply and demand and those thing who will make the fiat currency will never be worth again.
I have no idea to tell what the theory to create a money fiat honestly. Because in my opinion, the money should be run well, I mean the circulation of it will be start from bank who create it and be using by its citizen and then it will be back to bank again and that is good circulation. But the hyper inflation comes it is not like that, the bank will make a lot of money so as the price of stuff goes higher, because its price will depend on supply and demand and those thing who will make the fiat currency will never be worth again.
Honestly, inflation is the main reason for me. Looking back I realize my father bought his first house for less than 2000 dollars, 20 years after the fact I am looking at that same house worth around 100k right now, nothing should be worth 50x what it used to be in 20 years time but that is not the housing market only, looking at the grocery goods for example I realize most of them made at least 20x and almost all of them made over 30x increase in the price.
So, it is not that goods become more expensive, it is the fact that money worth less. That is why I feel like if I own crypto I would be saved from that, I feel like bitcoin is exempt from inflation somehow (it is not, it is just goes up and down but so far in 10 years it always gone up in long term) which is why I feel like fiat is worthless.
So, it is not that goods become more expensive, it is the fact that money worth less. That is why I feel like if I own crypto I would be saved from that, I feel like bitcoin is exempt from inflation somehow (it is not, it is just goes up and down but so far in 10 years it always gone up in long term) which is why I feel like fiat is worthless.
Simply the same thing prevent Bitcoin to replace FIAT currencies, is what makes a Fiat worthless. people can't use a currency that is volatile in nature every second. look at third-world countries such as Zimbabwe, Venezuela, Vietnam and Iran, their local currencies are highly volatile right now and no one knows what the future holds for them. these currencies are worthless than ever because of volatility, and people in those countries exchange their money into real estate or Crypto.
Another factor could be when major retailers such as Amazon, Walmart, small shops, plus credit card companies don't accept any FIAT currency as payment for actual goods and services. if the OPEC countries take BTC in exchange for Oil, the FIAT currency is dead. The moment Oil is sold in BTC by any of the G20, is the moment the FIAT currency is effectively dead. then it’s possible for Bitcoins and Altcoins to replace FIAT currencies.
Another factor could be when major retailers such as Amazon, Walmart, small shops, plus credit card companies don't accept any FIAT currency as payment for actual goods and services. if the OPEC countries take BTC in exchange for Oil, the FIAT currency is dead. The moment Oil is sold in BTC by any of the G20, is the moment the FIAT currency is effectively dead. then it’s possible for Bitcoins and Altcoins to replace FIAT currencies.
What makes a Fiat worthless?
Cryptocurrencies are making fiat worthless. Ten years ago when they did not exist there was no alternative to fiat, so no matter how many flaws fiat have there was need for it. Right now there is not anymore. why is fiat so bad? Because it is linked to government. there is zero need for that.
What makes a Fiat worthless?
Cryptocurrencies are making fiat worthless. Ten years ago when they did not exist there was no alternative to fiat, so no matter how many flaws fiat have there was need for it. Right now there is not anymore. why is fiat so bad? Because it is linked to government. there is zero need for that.
Ouch that hurts deeply . Crypto did an impact on Fiat and on other medium but I think that was only light/lite because we can see that majority of the population are still ended up on Fiats . IDK maybe the support for cryptos are only limited for now . There were alternative to fiat before , before crypto came out but crypto works better since most of them were also centralized or somehow link to banks/governments.
What makes a Fiat worthless?
Cryptocurrencies are making fiat worthless. Ten years ago when they did not exist there was no alternative to fiat, so no matter how many flaws fiat have there was need for it. Right now there is not anymore. why is fiat so bad? Because it is linked to government. there is zero need for that.
When there's a lot of money supply circulating in the country. But I do believe that it will only happen because the government didn't handle it very well? I mean, if the government and banks knows how to maintain their money, it wouldn't lose its value. We can blame the government because they're the one controlling it. Let's say that there's a reason why they print too much money bit that's not an excuse because they know what will happen if they will do that.
A government that established fiat can also be the reason for it to lose its worth.
A government that established fiat can also be the reason for it to lose its worth.
There can be a number of reasons for fiat to become worthless. Nazi Germany fiat became worthless when they lost the war. Some fiat money in the former Soviet Union members became worthless when the union disbanded and had to be changed to new fiat currencies.
In short when a country loses position its fiat value plummets and this makes them print new bills with higher denomination but when they do that it's already over. They are only buying time this way.
In short when a country loses position its fiat value plummets and this makes them print new bills with higher denomination but when they do that it's already over. They are only buying time this way.
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Inflation could make fiat currencies worthless. But that is something that happenes rather rare, usually in under developed countries with unstable governments.
But this is not something that happenes in stable and good regulated economies and in countries that have problem with high inflation cryptocurrencies couldn't be the solution and can't save the economy.
But this is not something that happenes in stable and good regulated economies and in countries that have problem with high inflation cryptocurrencies couldn't be the solution and can't save the economy.
Not inflation. Remember that fiat is just a paper. Government can print unlimited supply of it. As long as people acknowledge the fiat value then it will always have a value. There is some scenario that fiat will be worthless. Its either zombie apocalypse will happened or world war 3 were all country will be into development process.
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Seriously speaking. Fiat will never be worthless once government is still have power. But once a country was taken over by other country thru war then most probably the fiat of that country will be worthless.
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?
As long to those people who are on the top in manage there would be no possibilities for Fiat to become worthless.This is how this reality do fucked us up.As long these government do exist there would be no reason for fiat to have no value.
We do see some changes on system but those are only applicable into some countries but on general? it wont surely happen.
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?
Economic conditions do not match the money that has been printed. The case in Zimbabwe because their governments print a lot of paper money without looking at the economic sector they are facing. In my opinion the very impact on the decline in the value of fiat that may be of worthless is economic war or trade war. 
The value of a fiat currency is tightly related to its country of origin's productivity. So the question is, what factors affect productivity?
- Political stability
- Human resources
- Natural resources
- Economic system
- Force majeure
A currency never meant to be a store of value but to facilitate trades, and as a means to redistribute wealth, i.e., taxing idle money in the form of inflation to encourage spending (productive activities or economic growth).
If you think a country with (let's say) 3% population growth doesn't inflate its currency by 3%, how the new 3% of the workforce can get a job?
*if you are reading this, congratulation, you now understand that economic problem isn't that simple. Now you can try to think about what system can be better than the fiat system. Not just "blaming" inflation.
- Political stability
- Human resources
- Natural resources
- Economic system
- Force majeure
A currency never meant to be a store of value but to facilitate trades, and as a means to redistribute wealth, i.e., taxing idle money in the form of inflation to encourage spending (productive activities or economic growth).
If you think a country with (let's say) 3% population growth doesn't inflate its currency by 3%, how the new 3% of the workforce can get a job?
*if you are reading this, congratulation, you now understand that economic problem isn't that simple. Now you can try to think about what system can be better than the fiat system. Not just "blaming" inflation.
Nothing makes fiat wortless in general. Only crypto maximalists thinks so.
If we are talking about currency drop - politics and nothing more. There are undervalued and overpriced currencies
If we are talking about currency drop - politics and nothing more. There are undervalued and overpriced currencies
If you look at history - some currencies have become completely worthless.
For example, when England joined with Scotland in 1801, the deal was that the Scots kept their own currency, the Pound Scots. But it had already been losing value before the Union, and afterwards it just collapsed, and people in Scotland started using the currency that belonged to England and Wales instead - the pound sterling.
Similarly in the 1920's both the German and Austrian currencies rapidly became worthless and people there scrambled to get their hands on either gold, pounds or francs.
In the modern world Argentina's currency became worthless in the early 2000's, and they had to replace it with a new currency.
Fiat ony has value if someone else accepts it in exchange for goods. As soon as they start refusing it becomes worthless.
Inflation could make fiat currencies worthless. But that is something that happenes rather rare, usually in under developed countries with unstable governments.
But this is not something that happenes in stable and good regulated economies and in countries that have problem with high inflation cryptocurrencies couldn't be the solution and can't save the economy.
But this is not something that happenes in stable and good regulated economies and in countries that have problem with high inflation cryptocurrencies couldn't be the solution and can't save the economy.
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?
The most obvious example, that we see with Zimbabwe and Venezuela is known as hyperinflation, which is when a country overprints or devalues their currency so much, it becomes worthless and loses value rapidly. We see this in both countries now, with their dollar being very weak compared to the Euro or the US dollar.The best example of this was after WW1 where Germany needed to pay a lot of debt to the allied forces in order for them to fix their cities, etc, and it was such a large number that they needed to print more money, and since they did that, their dollar kept and kept dropping, where people literally couldn't afford food, and it became a shitshow.
A little history lesson for you
Hyperinflation is the only reason why fiat is becoming worthless. Excessive printing of money will lead it to become useless, which will just apply in poor countries or countries that will be managed by a greedy leader and politicians. I think that is one of the advantages of cryptocurrency in fiat. You can't make cryptocurrency and mass reproduce it. It will just have a limited supply so that inflation will not be a problem. It will just relay on supply and demand for the people. Since it's decentralized, it will not be controlled by a government or any greedy leaders and politicians.
The reality is that there are only a couple of countries where local fiat currency is worthless. If it was any more than that, we'd be in a major crisis. I bet that nobody who's posting in this thread lives in a country where your money is worthless, right?
About the barter system, what can you expect when money no longer functions as it should? Anybody ever watch the walking dead? You have to trade things with each other, it's a pain in the ass, it's the entire reason why money was invented in the first place. That's why people in countries with hyperinflation either barter or turn to another stable currency that has value.
About the barter system, what can you expect when money no longer functions as it should? Anybody ever watch the walking dead? You have to trade things with each other, it's a pain in the ass, it's the entire reason why money was invented in the first place. That's why people in countries with hyperinflation either barter or turn to another stable currency that has value.
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?
Nothing can make fiat worthless except the government themselves. Technically fiat is a currency which get's it's worth due to the promise of the government on it. Therefore the trust of people in government is the reason for existence of fiat. For fiat to become worthless the trust of people on governments need to shatter. Just like in case of Zimbabwe people's trust in their government shattered which lead to devaluation of the currency of Zimbabwe. Jump to: