What makes a Fiat worthless?

[Wysi]

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?

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[yoseph]

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.

[abeecrypto]

Well, all you have mentioned are contributors.

Currencies are forms of value. And currencies increase in value when there is increase in demand of it. What leads to increases in demand of any country’s currency is the products they can offer. When a country ain’t that productive, they have less they can sell. Therefore, potential reduction in the value of their currency.

However, It’s more of a demand and supply thing. The supply of money will have to be balanced with demand for it. The moment there is too much supply of money from the central bank and less demand for it, the money loses its value. And less demand happens when there is less products to buy. They call it Inflation.

This is just my cent on the matter.

[magneto]

The main reason comes down to the fact that fiat is intrinsically worthless.

To put it more strictly, its intrinsic value is simply the piece of paper that it's printed on. Since central banks can simply "print" more of it, or in the modern era, create more bank reserves, it essentially means that there is no cap on the scarcity.

If anything doesn't have a capped supply it's bound to depreciate in the long run, especially when there is uncontrolled money issuance.

[jossiel]

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.

[alyssa85]

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, it's always inflation.

As to what causes inflation - usually restrictions on trade. So if you can't import say wheat, and your domestic wheat harvest yields are not so good, then prices rise. What you can buy with one unit of currency then drops - and that's how a currency becomes worthless. Usually needs price rises of several hundred percent for it to happen though.

[chaoscoinz]

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 think fiat currency becomes worthless when it becomes too inflated, or when people stop trading it all together and start utilizing another type of currency, usually a stronger foreign fiat. The the U.S uses a fractional reserve system through the federal reserve, so the dollar is no longer backed by a gold standard I think. Money is real complicated, there are many systems that make it work. I honestly don't know the full mechanics of the monetary system. I'm in doubt about crytpo currency ever completely replacing fiat, at least not any time soon, as it is way easier for the modern man to use fiat cash. You can simply exchange physical fiat faster for transactions than having to whip out your smart phone or ledger and scan a QR code and send a transaction, then wait for it to be approved
  In order for cold hard cash to be replaced, you'll have to put a smart phone in every single persons hand, including those who are poverty stricken, in remote areas, etc. Seems like its much easier to deal in physical cash for now. Who know 20 years from now?

[exstasie]

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 boils down to lack of popular confidence in the currency. Free floating (unbacked) currencies only retain value because people believe in them. They aren't like backed currencies that are convertible to the underlying.

In Zimbabwe, runaway currency printing caused hyperinflation. As prices skyrocketed, people could plainly see the currency had no firm basis for value. Anyone holding it naturally lacked confidence that it would hold up. This created a situation where everyone was desperate to get rid of it, and no one was willing to accept it. Confidence was completely broken.

[Google+]

I think that for the time being Fiat is still very valuable and Fiat will really be worthless when it starts when many people use payments and transactions using digital currency because it will reduce the use of paper money, even though everything is digital, there will still be Fiat money only created very little because everything has a gradual process.

[Periodik]

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 combination of all. It hardly falls straight to worthlessness with only a single factor playing. Normally, it will be the interplay of falling GDP, enormous rise of inflation, corruption, economic crises, and some other factors. Over printing of fiat is also enough reason for it to lose its value. Wars, especially huge enough to cover the entire country, could also kill their fiat system.

[Suslived]

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.

[ecnalubma]

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.

[Wexnident]

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.

[CryptoBry]

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.

[meliodas]

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.

[blckhawk]

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.

[BennyK]

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.

[NathanJB]

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.

[Edraket31]

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.

[mersal]

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.

[Murat]

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.

[milesfull]

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

[airdnasxela]

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.

[Experia]

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.

[dimonstration]

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.

The best example is what happening in Venezuela, their fiat becomes useless since it can't buy anything due to over over inflation that makes them incapable of using their paper money, even they overprint their money its still unable to buy products that will help them to live as their government finds no way to decrease their inflation rate.

[EdvinZ]

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.

[dillpicklechips]

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/

[Wysi]

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.

[tenakha]

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.

[teosanru]

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.

[Pearls Before Swine]

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.

[Yatsan]

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.

[Kyraishi]

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

[bitbunnny]

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.

[alyssa85]

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 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.

[mu_enrico]

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.

[ufaiz50]

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.

[Quidat]

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.

[Coin_trader]

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.

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.

---

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.

[darkangel11]

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.

[Eclipse26]

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.

[Febo]

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.

[shoreno]

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.

[Serco]

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.

cryptocurrency has no correlatin at all into fiat  value.high inflation that causes by economic data be the main reason for it.cryptocurrency just investment portofolio like gold or othrr portofolio hat could survive from inflation.it recognizes could survive longer when fiat value decrase alot.

[Darooghe]

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.

[beerlover]

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.

[Ridwan Fauzi]

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.

[pixie85]

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.

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.

[eaLiTy]

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.

[topbitcoin]

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?

In every news usually because of inflation. When they mint a lot of fiat, because of a lot of aspects. Their money will be worthless, or maybe although they have a lot of money, it's value is not like what it's value before. And then if it's keep happen, maybe like what already we saw in news from Venezuela which get hyper inflation.

[STT]

Excellent question because the most common reason for FIAT to exist is by force and requirement of an ongoing ruling government of that country.    Its quite possible for everyone to choose an alternative to that currency if they are able, some currencies are more reliable then others so thats natural some will prefer that quality and just what they already know.
   The foundation of the Dollar was based around what existed prior to it which is the Spanish empire and its use of gold.   So USA did start off with gold but has become now a political currency relying on the status quo and its heavily favourable as the most recognisable long term currency though others have been more favoured in the last hundred years.

FIAT becomes worthless when its not used by anyone for any purpose.   The most obvious case would be where the value of the paper exceeds the stated value, people have used currency as wall paper and fuel for fires before because it was most valuable in that way after losing any previous value.    The main answer is about a competitive market which always exists, people will trade gold, barter food and others items and take the inefficiency in those trades if paper FIAT is more awkward and unreliable to store over night.

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.

FIAT can become worthless while a government continues.   No person or collective can defy science and alter the dynamics which can cause the failure of a currency, they can apply force but in the end the bullets used may be more expensive then all the use left in the money created.   The currency must serve a task, provide utility or it becomes a burden not a benefit or with any value.

[barabarian1]

yes you are right some of the things you mentioned are factors that influence the fall of fiat currencies. and in my opinion political instability and a country's weak economy are the main factors causing the value of fiat currencies to fall. plus GDP, inflation and trade balance also affect fiat money. Fiat money is very susceptible to inflation, especially the currencies of poor countries.

[Kambal2000]

yes you are right some of the things you mentioned are factors that influence the fall of fiat currencies. and in my opinion political instability and a country's weak economy are the main factors causing the value of fiat currencies to fall. plus GDP, inflation and trade balance also affect fiat money. Fiat money is very susceptible to inflation, especially the currencies of poor countries.

Corruption is for me will be the major cause why a certain country will have a worthless fiat, just like what happened to Venezuela, wherein they have financial crisis, because the corruption is very wide in their country. With this, they suffered from shortage of food because 70% of their foods was imported, so their economy really fluctuates.

[Eugenar]

For me, it is quite not that appealing to hear, but cryptocurrency will be a possible reason in the future for fiats to be worthless. The fact that we are converting our fiats to buy crypto, is a way for us to embrace digital currency and to leave fiats, but in this case, fiat could be worthy again if a nation could still have a cryptocurrency that will still unify all, including economy, government, financial institutions and etc.

[sirminesalot]

For me, it is quite not that appealing to hear, but cryptocurrency will be a possible reason in the future for fiats to be worthless. The fact that we are converting our fiats to buy crypto, is a way for us to embrace digital currency and to leave fiats, but in this case, fiat could be worthy again if a nation could still have a cryptocurrency that will still unify all, including economy, government, financial institutions and etc.

when talking about fiat currency and crypto currency with almost the same function but different systems and see the development of crypto currencies and their functions more quickly and practically by following the changing times and technology the fiat currency system is worthless but fiat currencies are run by governments and certainly has strength in its development

[supercanada1]

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.

Volatility is not which prevents people from using bitcoin as a medium of exchange. It is rather suggested to not use bitcoin in purchases because it holds a bright future and one can become rich by holding it for long. This is true because we have people with us who became millionaire with bitcoin holding.  If it was not volatile, it would have been impossible to get humongous rewards from it.

[Genemind]

As for me, the economic situation affects the value of every currency. It depends on the approach of the national situation. However, cryptocurrency as a second currency has a huge impact on every economic situation but it couldn't affect the value of fiat negatively. It could actually support it as a mode of payment and investment.

[Colt81]

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.

[SummerBliss]

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.

[senne]

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 could be many reasons which will lead to the devaluation of currency. High balance of trade, poor management of currency circulation in the system, high rate of credit defaults, corruption etc etc. On the whole, it usually happens because of the poor management by the government. Though natural disasters can be one of the reason, but that isn't much prominent. That's why world needs a decentralized currency which gives owner the power of managing his funds, not any inefficient central power.

[AicecreaME]

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?

Corruption is what makes fiat (wealth) worthless since the first era until now, added up inflations and hyperinflations that could make fiat's value disappear is very possible to happen anytime soon, people might say "Hello" to cryptocurrency because to be honest, fiat is weak compre to cryptocurrencies that have so many limitations and it have more potential to help people or even the whole country than fiat.

[qwertyup23]

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 only way that money can be deemed worthless if its value reaches hyperinflation- wherein it losses its value on the market but its FACE VALUE is tremendously high.
Like what you have mentioned, Zimbabwe has a fiat note called 100-trillion-dollars and it is only worth $40 USD. Excessive printing of money can cause hyperinflation where the supply is high but the demand for goods is significantly low.

[abhiseshakana]

Excellent question because the most common reason for FIAT to exist is by force and requirement of an ongoing ruling government of that country.    Its quite possible for everyone to choose an alternative to that currency if they are able, some currencies are more reliable then others so thats natural some will prefer that quality and just what they already know.
   The foundation of the Dollar was based around what existed prior to it which is the Spanish empire and its use of gold.   So USA did start off with gold but has become now a political currency relying on the status quo and its heavily favourable as the most recognisable long term currency though others have been more favoured in the last hundred years.

FIAT becomes worthless when its not used by anyone for any purpose.   The most obvious case would be where the value of the paper exceeds the stated value, people have used currency as wall paper and fuel for fires before because it was most valuable in that way after losing any previous value.    The main answer is about a competitive market which always exists, people will trade gold, barter food and others items and take the inefficiency in those trades if paper FIAT is more awkward and unreliable to store over night.

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.

FIAT can become worthless while a government continues.   No person or collective can defy science and alter the dynamics which can cause the failure of a currency, they can apply force but in the end the bullets used may be more expensive then all the use left in the money created.   The currency must serve a task, provide utility or it becomes a burden not a benefit or with any value.

The relationship between fiat currency and a country cannot be separated because the legitimacy of the government that makes fiat currency can be used as a legal payment tool in a country or at the international level. Many factors cause the value of fiat currency to become worthless. The main reason is because the value contained in money is not backed up by gold. paper money material does not represent the value of money, in contrast to gold coins whose intrinsic value is the same as the value of currency.

The simple analogy is as follows, gold provides a guaranteed value to the currency, no one doubts gold as a precious precious metal. With the existence of a gold guarantee when issuing / printing money, the value will be more stable because there is trust. Human nature for material problems is what can be felt by the five senses.

Fiat money becomes worthless when the market or society loses confidence in a country. The stronger the value of its currency, the country must also be strong. When the government of a country prints money to overcome economic problems, other countries will doubt the capabilities of the government and that country will ultimately lead to the loss of confidence in the government which will inevitably make the value of the currency low.

[Silberman]

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 by itself could work as long as governments were fiscally responsible and only printed a limited amount of fiat each year and had inflation under control, but that is not what we see, governments spend more money than what they get in taxes, get in debt and print more money than what the economy can tolerate, this creates inflation and then they keep printing money to try to solve those problems with the obvious consequences of fiat losing value and losing the confidence of the people in the currency.

[Lagduf]

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 only way that money can be deemed worthless if its value reaches hyperinflation- wherein it losses its value on the market but its FACE VALUE is tremendously high.
Like what you have mentioned, Zimbabwe has a fiat note called 100-trillion-dollars and it is only worth $40 USD. Excessive printing of money can cause hyperinflation where the supply is high but the demand for goods is significantly low.

Excessive printing is a serious problem in a third world countries. Even more dumber is I've ever heard someone saying that if the government need money just print it I mean they must be lacking the basic knowledge of how fiat works. Also, if a country is politically unstable their money will seem to be affected aswell because investors are withdrawing their invested fund and also losing their trust against the country's money therefore making it worthless in the eyes of international market.

 It's always crazy to think that some country could failed that hard making their money as good as dust lying around in the ground.

[MI6]

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 lot of things can affect a country to get inflation. And what is the main problem is when their government do a mistake from it and think if a lot of money created, it can help people to get money form it. And then hyper inflation come, which make that money itself not have value.

[Bitcoin Seller]

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.

[Visbay]

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.

[STT]

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?

The paper is inefficient and costly and wasteful to use, thats a situation when its obvious any alternative is going to make society richer to take that option.   Economies naturally favour efficency in everything and governments often block open competition which makes society poorer even if some people may benefit short term it loses the country overall longer term.   This logic isnt respected anywhere universally, every country thinks a smart idea to force prices higher to help some workers.   In the case of bad money, the fake value helps government so they are biased to themselves but it costs everyone else using it in lost and failed trading value.

[shield132]

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.

[KennyR]

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.

[jrrsparkles]

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.

[reality18]

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.

[riso2015]

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.

[toast]

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

[NathanJB]

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.

[davinchi]

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.

[AicecreaME]

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.

[Leyss]

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.

[Oceat]

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.

[vintages]

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.

[syamster]

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.

[jrrsparkles]

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.

[yulchatar]

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.

[Apened]

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.

[gunungkembar]

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.

[doomistake]

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.

[clickerz]

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.

[Ludmilla_rose1995]

in my opinion, what causes fiat is no longer valuable because of the great inflation in a country. This can happen when the government implements a budget deficit system, where the budget deficit is overcome by printing new money. But this makes the amount of money circulating in the community increase and cause inflation.

[BChydro]

Therefore, it cannot be said that fiat is already outdated, it should be changed to other financial systems.

If your governing body comes up with good projects that could boost the economy rather than increase the inflation rate and have the right policies to balance the inflation then there is nothing to worry, i am not expecting any major changes in any financial systems and we are not going back to the gold standard we had in the past but as long as there are no stupid economic policies the fiat system will be fine.

[marcbitcoins]

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?

For me it will be the corruption has the greater contribution to make a certain economy to become unstable making for their money value to become worthless too. Money will not be able to circulate if it will just keep it by a certain individuals causing damage to nation's growth and development. Corruption will also leads to allocative inefficiency / diverting public resources for private gain which contributes to persistent income & wealth inequality and reduced progress in cutting rates of extreme poverty.

[Pamadar]

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.

Tax is the  blood of the economy of each country. With such illegal transactions in which government can not getting anything from, it will lessen the power of a country that can also lead to its fiat devaluations. Fiat become worthless once the economy gets weak. We can't deny the fact that
the value of any fiat relies with how the economy of a country is performing, the more it's been competitive, the higher the value of fiat will
grow.

[abhiseshakana]

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.

You cannot say that the government is worthless. Why do I say it that way because there is the main principle of the function of government that is maintaining public order and security so that every member of society can feel happiness. In maintaining order, the choices made are the best choices from bad choices. In the current era of globalization, domestic stability is also influenced by other countries' external policies.

The problem of the fall in fiat value is not only caused by the government's policy to print new money and not all governments adopt a policy of printing new money to overcome the economic problems in their country. Printing as much money as possible is allowed as long as the printing of money is backed up by gold, so the problem is there is no backup (creating out without nothing). Every fiat money printed by the central bank will become a burden (debt) to the economy.

In addition, why FIAT money becomes worthless because, since the collapse of the Breton Woods system, the world's monetary system automatically relies on the US dollar, as a consequence many countries in the world keep their foreign exchange reserves in dollars. International transactions such as import-export, oil trade, and financial services use the US Dollar as a transaction tool. So, indirectly there is a high enough relation of all these countries to the stability of the dollar. So the instability of the dollar will cause inflation to export throughout the world and the burden on the American economy will be felt by the entire world community.

[riso2015]

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.

Correct, inflation is the most serious problem in state finances, if inflation occurs then the currency
will be worthless because every time we want to buy something then our money becomes less, not enough.

[hatshepsut93]

There are a few reasons why fiat currencies die. One is hyperinflation, which is caused by government printing money to deal with some problems like war, natural disaster, economic crisis and so on. Obviously it only makes things worse. The other reason is when the currency's country ceases to exist. When the Soviet Union collapsed, it's currency became worthless rather quickly. Also, sometimes countries abandon their currencies and start new ones, this often happens as the result of hyperinflation. Many EU countries have discontinued their national currencies in favor of Euro.

[STT]

The old Rouble was exchangeable to the new Rouble at a rate of 10,000 to one.    So quite close to worthless and it was because debts exceeded assets, of course the country is rich in many ways (given time to harvest) but it did not have means to pay its on demand debt at that time.      That is what tends to happen, the scales tip a country towards just slamming the reset button.   Its easier for them to destroy the debt and acquire a bad reputation then the 50 years it might take to repay the majority of the debt, doing this can lead to great upsets even wars and the population is stranded by an inability to trade beyond a local barter quite often.

In theory inflation is a form of soft default, like a country raising the retirement age after the population spent 40 years working towards that retirement.    The current global economy is very close to this soft default situation I think, which is why many speculate more secure transactions with less self bias and BTC qualifies in some way for this.

[secretgirl]

in my opinion a country's currency is worthless because that country prints too much money. and if a country prints too much money will cause people to have a lot of money and cause their purchasing power to be high and make the price of goods go up this makes the value of their currency worthless. as happened in zimbahwe. and inflation can also be caused by weak economic conditions and many cases of corruption.

[error08]

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.

That's not the cause, but what causes hyperinflation in the first place? one of the reasons for Venezuela's hyperinflation due to trade restrictions by the U.S. and other countries follow U.S. politics. The sanctions restrict the Venezuelan government's access to U.S. debt and equity markets because of the government responsible for violations of human rights, corruption, degradation in the rule of law and repression of democracy. But the main reason for Venezuela's hyperinflation because of the GDP growth depends on petroleum exports has been in a state of total economic collapse, massive money-printing, and deficit spending.

In this case, fiat becomes worthless if the government can't maintain its value related to the country's GDP and GNP growth.
Many factors affect the GDP and GNP of a country, such as;
The quality of human resources (skills, creative, abilities, training, and education), natural resources, capital formation, technological development, social and political factors.


source

[horrifiedx1]

fiat usually becomes worthless because of problems in the country, as is the case with venezuela, because of high corruption rates, it has an impact on the country's economy that is destroyed, so that people become victims. for Zimbabwe I don't think it's that much different either

[Sithara007]

As long as fiat has some purchasing power, it will not become worthless. And people don't have much options available with them. The only alternative to fiat cash is barter. And for sure not many would prefer barter over fiat currency. And that is the advantage with fiat. People are forced to use them, as they don't have any other choice readily available.

Ideally, a currency should have stable purchasing power. But that is not true in the case of fiat. It's purchasing power goes down every day, due to inflation. And this inflation results from the fact that the central banks are printing more and more banknotes every year, to neutralize the budget deficit and to manage the federal debt. Obviously Bitcoin represents the solution for this, but the governments will never allow it to be used for this purpose.

[BennyK]

Hyperinflation is one of the major causes of the death of fiat currency. This happens when a country decides to print out additional money to address certain problems within the country. Also, countries may decide to abandon their native currency for another which makes the native one worthless. Typical example can be seen in Europe where some countries abandon their main currency for the EURO.

[lumeire]

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 fiat currency becomes worthless when enough people disagree to accept it and also the country isn't having stable internal affairs like corruption or financial instability. These factors make up the economy of the country and also the purchasing power of their currency.

[BitHodler]

Ideally, a currency should have stable purchasing power. But that is not true in the case of fiat. It's purchasing power goes down every day, due to inflation.

Actually, I'm leaning towards mild inflation to be a good thing for an economy as it motivates people to spend and invest, otherwise people would sit on their money because they won't lose anything if purchasing power was stable.

The area where inflation goes wrong is the area where governments get too greedy to fix everything by printing money to fill up gaps left and right instead of allowing the economy to take a hit and recover organically.

[BitcoinHunt3r]

There are a lot of things that can cause money inflation. One of it is wrong government policy. But i believe that is only happen in a few countries. Because the others usually have their own way and wouldn't minted fiat to maintain their financial problems.

[Webetcoins]

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.

Correct, inflation is the most serious problem in state finances, if inflation occurs then the currency
will be worthless because every time we want to buy something then our money becomes less, not enough.

And the problem of inflation is created by governments. Whenever there is an increase in money supply which eventually outpaces the economic growth of a country, the outcome is inflation. This is done by the authorities. Now we cannot really order them to not do so and neither can we stop it on our own. We are only left with improving our income. Fiat become useless and therefore, bitcoin should be used for this purpose.

[Silberman]

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.

That sounds nice, if fiat was used correctly then a small amount of inflation every year will stimulate the economy, but that is not what happens in the real world, what happens is that governments find irresistible to abuse their power to print as much currency as they like and to spend as much money as they possibly can only to find out that there are consequences for their actions but when they realize that it is too late and they cannot fix it.

[desticy]

The main danger of fiat money is their constant depreciation.
Most currencies are not provided with anything or conditionally provided, only in words, which makes them very vulnerable to global financial crises.

In addition, banks are bubbles that will burst sooner or later. What will happen to all these people who rely on fiat funds? It will be a disaster.
People need an alternative. Money that is not controlled by anyone other than the people themselves. Cryptocurrency can be such a solution.

[target]

The old Rouble was exchangeable to the new Rouble at a rate of 10,000 to one.    So quite close to worthless and it was because debts exceeded assets, of course the country is rich in many ways (given time to harvest) but it did not have means to pay its on demand debt at that time.      That is what tends to happen, the scales tip a country towards just slamming the reset button.   Its easier for them to destroy the debt and acquire a bad reputation then the 50 years it might take to repay the majority of the debt, doing this can lead to great upsets even wars and the population is stranded by an inability to trade beyond a local barter quite often.

In theory inflation is a form of soft default, like a country raising the retirement age after the population spent 40 years working towards that retirement.    The current global economy is very close to this soft default situation I think, which is why many speculate more secure transactions with less self bias and BTC qualifies in some way for this.

In a way the government is indirectly stealing money from the people who has money on the banks while they try to inflate their money to lessen the debts. Then the trading partners will be upset for doing so and so they will also try to inflate their money. Yes. BTC will help since the government of any country has no power over it to manipulate its price.