1.9 Why All Fiat Currencies Fail

Throughout history, thousands of fiat currencies have been created. Every single one has eventually failed, been devalued, or hyperinflated into worthlessness.

The Roman denarius went from pure silver to barely 2% silver content over 200 years as emperors debased the currency to fund wars and public spending. This directly led to Rome's economic collapse.

The British pound sterling was once literally a pound of sterling silver. Today it has lost over 99% of its value against gold. The US dollar has lost over 97% of its value since the Federal Reserve was created in 1913.

The reason is simple: when money can be created at zero cost, it will be. Politicians and central bankers face irresistible pressure to fund spending through money creation rather than unpopular taxation or spending cuts.

Fiat currency is an experiment that has never succeeded in the long term. Bitcoin represents the first truly scarce, non-sovereign money in human history — one that cannot be debased by any government.