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> If you like, fiat currencies have underlying value because men with guns say they do. And this means that their value isn’t a bubble that can collapse if peop
by UncleEntity 8y ago
> If you like, fiat currencies have underlying value because men with guns say they do. And this means that their value isn’t a bubble that can collapse if people lose faith.
Until the value does collapse that is, just look at <how many?> examples of hyperinflation in my lifetime.
- kybernetikos 8y agoDepending on your age and what exactly you count, probably around 5ish.
- PhantomGremlin 8y agoDepending on your age and what exactly you count, probably around 5ish. Maybe he's from Brazil? Maybe he's 76+ years old? If so, then I think there were 5 "ish" 1000x devaluations in that single country in his lifetime. I never lived in Brazil but knew people who did. Some quick checking Wiki for dates, I probably missed some devaluations?: 1942 cruzeiro replaces real at 1000x 1967 new cruzeiro replaces old at 1000x 1986 cruzado replaces second cruzeiro at 1000x 1989 cruzado novo replaces cruzado at 1000x 1993 cruzeiro real replaces cruzado at 1000x Pick another random country in Latin America and you probably see the same thing.