The Problem with Fiat Currencies is that they are not backed by a physical commodity like gold or silver, which means their value is determined solely by supply and demand in the market.
This makes fiat currencies vulnerable to inflation, which occurs when the supply of money in circulation grows faster than the amount of goods and services available for purchase.
When this happens, the purchasing power of the currency decreases, resulting in rising prices and a decrease in the standard of living for the population.
Additionally, fiat currencies can be easily affected by political and economic factors such as government policies, international trade, and market speculation, which can cause significant fluctuations in their value.
Finally, because their value is not tied to a physical commodity, fiat currencies can be subject to market crashes, currency crises, and other forms of financial instability.
