What makes a Fiat worthless?

[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.

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[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.