The current financial system, based on fiat money, has been widely criticized for its lack of intrinsic value. Fiat money is currency that is not backed by any physical commodity or precious metal, but rather by the government's declaration that it has value and can be used as a medium of exchange.
FIAT money is not supported by anything but air. Unlike gold or silver, fiat money does not have any inherent value that can be used as a measure of worth or as a store of value. Instead, it is created out of thin air by central banks and governments, and its value is determined by the forces of supply and demand.
The main issue with fiat money is that it is subject to inflation, which occurs when the supply of money in circulation exceeds the demand for it. This can lead to a decrease in the value of the currency, which can have negative consequences for the economy as a whole.
Moreover, the value of fiat money is highly dependent on the stability and trustworthiness of the issuing government or central bank. If the public loses faith in the government's ability to manage the economy, the value of the currency may decline rapidly, leading to economic instability and uncertainty. There are many cases during the human history; as an example the Fall of the Roman Empire.
Be smart, invest in real state!
en Blog