What makes a Fiat worthless?

[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.