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 depends on the country and its economy. What makes money worthless is that it loses value against the asset that appraises it. If the strong money that comes to the country is less than money out of the country (this may not be exactly like that, but it is usually the case). Look at the Turkish lira, to save it, the influx of dollars from other countries had begun, that helped a little and showed that it may help. 
Topic: What makes a Fiat worthless? - page 5. (Read 2285 times)
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?
Fiat can be worthless if the governments do not manage well their resources and seek for foreign loans all the time. Also, countries with their importation rate way higher than exportation rate is liable to losing the value of their currency because there will be minimal foreign exchange to the country.Well I understand about improper management of funds but import and export rate does matters but not completely because it also depends on the products which are imported and exported as there are many Gulf countries which imports most of it's products and exports only oil and gas and still they are good. This tell us it's purely about how government manages it.
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?
A fiat currency became worthless when it became overprinted, there is a war like what you have said and there are lots of reasons, if there were no wars then their government fail economically their currency became worthless, I remember the time wherein there was a economic crisis happened in the US and their money value drops and also inflation has a huge part in the economic system.
Yes, also fiat can be worthless if a change of economy will happen, it can be worthless if in the future crypto will surpassed and even be a money that used and can be used on our daily lives. And on the article that i will put down below, that why people or the investors become too optimistic on investing on a stock market that can be a cause, well in a long term economic rate. That may be a reason to the fiat become worthless. Since were talking about the value range of it, it dependes on how the stocks move, thats when economics come if the supply and demand become low, can be a reason to loss the worth of fiat.
here is the link: http://www.themoneyenigma.com/why-does-fiat-money-become-worthless/
If you compare any fiat money with Bitcoin, you can see how the former are subject to inflation, while Bitcoin lacks this drawback. The main reason why people in some countries have less confidence in fiat money is that due to adverse economic factors, inflation in their countries reaches high values. The example of Zimbabwe shows that the depreciation of money rolls back the economy in the past to barter. In order for the economy to be sustainable, it must minimize inflation, and it is better to make sure that inflation does not exist.
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?
A fiat currency became worthless when it became overprinted, there is a war like what you have said and there are lots of reasons, if there were no wars then their government fail economically their currency became worthless, I remember the time wherein there was a economic crisis happened in the US and their money value drops and also inflation has a huge part in the economic system.
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?
A fiat currency became worthless when it became overprinted, there is a war like what you have said and there are lots of reasons, if there were no wars then their government fail economically their currency became worthless, I remember the time wherein there was a economic crisis happened in the US and their money value drops and also inflation has a huge part in the economic system.
I think that today Fiat still has a sale value and is very valuable but someday when there is an unintentional problem, Fiat can become worthless, the problem usually occurs when the governing fiat country has debt or suddenly the economy becomes bad then it will make useless fiat.
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?
Actually all you have stated can contribute and affect in resulting for fiat to be worthless. But in my perception, the primary resaon is because of the economy. Mismanagement of the economy may lead to crisis. A country may be in a great debt that's why their currency are losing money. Inflation as well. Some scenarios when a country is in debt, they tend to print more money to pay their debt but it causes hyperinflation which leads to their currency losing its value.
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
For me, Both Inflation and Deflation is the main reason for this crisis, If you hold money then those might be a concern for you because inflation could hamper your value and deflation makes you high, on the other hand, When inflation occurs then you will face many financial crises in your community regarding holding fiat, but if you hold Bitcoin then the price volatility is not hampering your movement if you can't spend on anything, In Zimbabwe, There is huge inflation in running so that country shouldn't be an example, I think security and much regulation are another barriers of Fiat to make exchange or hold for us, excessive regulation may bring sometimes a worthless factor in the money market.
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?
Primary reason is inflation which was caused by many things to a country,basically when a country have lot of debts to be paid they will print more which leads to the inflation,if it is under some certain limit then it could be a better country but when something like hyper inflation occurs then this will be fall of their country. 
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?
Fiat can be worthless if the governments do not manage well their resources and seek for foreign loans all the time. Also, countries with their importation rate way higher than exportation rate is liable to losing the value of their currency because there will be minimal foreign exchange to the country.If the government mismanaged the fund of the country, they will have financial crisis like what happened to Venezuela, and one factor that triggers this financial crisis is their government itself are corrupt, and their even food are imported, so when the price of oil dropped, they cannot afford to buy food and their money became worthless, good thing they are recovering now from this disaster.
I will be spelling out some reasons why I think fiat is ultimately heading toward the state of being worthless. Not necessarily wars and all. There could still be fiat amidst all those man-made catastrophe.
- Fiat will be made worthless because it is not anymore founded upon gold or silver or even arithmetic. It is only founded upon the decisions of a few individuals who made into what they call laws.
- Fiat is going to be worthless because its value is always depreciating. In the long run, this is definitely a foolish design.
- Fiat is going to become obsolete because it contradicts the nature, desire, or preference of men to become free.
- Fiat has a lot of hassles involved, I mean uncountable hassleds. You try to go to the bank and you will realize that very quickly.
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?
Fiat can be worthless if the governments do not manage well their resources and seek for foreign loans all the time. Also, countries with their importation rate way higher than exportation rate is liable to losing the value of their currency because there will be minimal foreign exchange to the country. 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?
Inflation plays an important role in dictating fiat's value. Although economic and corruption also is a factor on why it happens. If there is an economic slowdown, or the government just prints money out of thin air, it's highly likely that the inflation the is caused by that would make their money useless. Or if some corrupt official not doing his job, cutting national budget for kickbacks, which would slow down progress, would also slowdown the economy, GDP alongside with currency.
Fiat is worthless simply because of the inflation. Inflation eats up the value of a fiat currency which makes it worthless and useless in the future if you will do anything to preserve and grow its value. Investing is one of the things that a person could do in order to counter the inflation and to preserve his wealth.
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 guess all them can be contributing factors why a national fiat currency can be heading to oblivion or being worthless because of the hyperinflation affecting the whole economy. Money is all about value and when that value is constantly degrading itself then people using that specific money can really have a very big problem. We witnessed this phenomenon happened (and still happening) in Zimbabwe and Venezuela.
By mid-July 2019 inflation had increased to 175% in Zimbabwe sparking concerns that the country was entering a new period of hyperinflation. In April 2019, the International Monetary Fund estimated that inflation would reach 10,000,000% by the end of 2019 in Venezuela.
These two countries have become the most popular poster kids when it comes to hyperinflation. There so many factors that lead to their present predicament. Wrong and misguided economic policies in the past that failed miserably can be the number and mots important contributing factor. Political and economic instability can be the best recipe that can lead the country's fiat money to go on a massive slide.
And this is where Bitcoin can help, somehow.
Well, its a matter of perspective to be honest. Fiat is still quite useful to us now since its a nationally accepted medium of trade in the world. On the other hand, if you look past its usefulness, for now, it is actually riddled with holes. The fact that the government freely reproduce fiat leads to national debt growing ever so much and we don't actually have the capability to pay it off, leading to a huge negative on the debt. There is also the factor of corruption, wherein the end, the government is at hand. Plus, there is also inflation to think about. I honestly thought money was just money in the past but ever since being part of this community, I've seen a lot of how the background of money works and whoa, I was lied to. By quite a lot not gonna lie.
Lets go back to the basic law of supply and demand, when a demand for goods increases while supply of goods decreases due to higher production cost in order for certain company to survive they will pass on to consumers their burden thats why prices of common goods rises and purchasing power of fiat weakens. But if a goverment is smart enough to address the issue this type of crisis could be prevented or controlled.
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 wouldn't say it's worthless, you can still use the fiat paper bills to wipe your ass.
Kidding aside, I believe it's because fiat is so centralised with government and they have free reign to control what they do with it behind closed doors. How do you know right now that they aren't printing millions for themselves? Too much trust is freely given to untrustworthy people.
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