The Lifecycle of Fiat Money: One Diagram to Understand the “Lifespans” and Purchasing Power Erosion of Major Legal Tender Currencies Since 1700.
The chart spans dozens of currencies, including the British pound, the US dollar, the French franc, the German mark, the Japanese yen, the lira, and the peso. Most of them ultimately end in the form of runaway inflation, devaluation, or replacement. The right-side panel showing purchasing power loss indicates that many fiat currencies that have already left circulation saw devaluation of close to 99% or even higher.
For people holding long-term assets, the key takeaway from this chart is: fiat currency naturally has a “credit lifespan,” and the value of scarce assets (such as gold and BTC) is precisely a hedge against the fragility of the monetary system.
#法币 #货币 #inflation
The chart spans dozens of currencies, including the British pound, the US dollar, the French franc, the German mark, the Japanese yen, the lira, and the peso. Most of them ultimately end in the form of runaway inflation, devaluation, or replacement. The right-side panel showing purchasing power loss indicates that many fiat currencies that have already left circulation saw devaluation of close to 99% or even higher.
For people holding long-term assets, the key takeaway from this chart is: fiat currency naturally has a “credit lifespan,” and the value of scarce assets (such as gold and BTC) is precisely a hedge against the fragility of the monetary system.
#法币 #货币 #inflation