When we look at the economy and talk about it, it's all numbers and more numbers. However, I see people. People who are out of work, people who go hungry, and people who keep getting richer at the expense of those with little education and resources. For this reason, I believe that fiat currencies have failed.
Since the abandonment of the gold standard, money has been printed at an absurd rate. All this printed money has placed a heavy burden on the economies of countries. We all remember and know that 10 dollars today don’t buy what they did 10 years ago. Our purchasing power is diluted and will continue to diminish.
As time goes on, governments will print more and more money. For them, it doesn't matter, because it's just "money." But the effect of all this is that we, the citizens, will see our standard of living increasingly diluted. Think of a house worth 1 million dollars in 1994 and one today in 2024. They are vastly different standards.
This is why I continue to invest in and believe more and more in the power of cryptocurrencies. Of course, there are also many problems, charlatans, and scams in this space. But that is the price to pay until the population gains knowledge and mastery over this new financial technology. I believe that, in the long term, we will reap wonderful dividends for those who trust in the process.
Conclusion
The failure of fiat currencies is not just a matter of numbers. It’s a matter of human impact. As long as we continue to rely on a financial system that can be manipulated and inflated at will, we will face continuous erosion of our purchasing power and quality of life. Cryptocurrencies offer an alternative, a hope for a fairer and more transparent financial system. Sure, the path is full of challenges and risks, but I believe it's worth it. In the long run, those who invest in the knowledge and technology of cryptocurrencies will reap great rewards.
