The Evolution And Future Of Fiat Money

Fiat money is currency that a government has declared to be a legal tender. It is an intrinsically worthless object such as paper or coins that is deuced to be money by law. Therefore the global monetary is a storage is referred to as fiat system because money is a storage medium for purchasing power and a substitute for batter. The value of fiat money is derived from the relationship between supply and demand rather than the value of material that the money is made of.

The origin of fiat money dates as far back to 618-907 A.D in T’ang Dynasty where the emperor’s seal and signatures of treasurers placed on paper made from free bank. 

The west started to issue paper money in the 18^th century. France, the American colonies and eventually the continental congress issued bills of credit that could be used to make payments. However, the government issued too many bills which resulted in rising prices that tremendously lowered the values of the bills and made them worthless.

The major disadvantages of the fiat system includes the fact that, the currencies will always lose value overtime due to the legal human or government control of its printing money has the potentials of dropping to zero value since the paper has no value itself. It therefore brings the fear of saving money since the money itself can lose value overtime thus making people venture into investments which may also lead to a great loss.

With all the benefits and attendant draw backs of the fiat money system, there had been dwindling hopes in the future of fiat and currency distribution around the globe. However, with the introduction of cryptocurrency which is a digital asset designed as a medium of exchange, there is a great glimpse of hope as the system seeks to bring a lasting solution to the problems of dwindling and unstable currencies associated with the world’s monetary system.

This is mainly because cryptocurrency operation is peculiar and safe in its operation. There is the confidentially of information which is kept secret from third parties, the swift ability of cryptographic to recognize if any changes has been made the integrity and authenticity of transaction because it is carried out by two parties who don’t know each other.
 

It therefore is pertinent to state that cryptocurrency is the future money. The transactions happen directly between individuals instead of through banks and every crypto currency has its own blockchain and computers doing complex math on a large network. It has also been recorded that no asset class has seen the magnificent gains which were recently seen in crypto currencies, as such the call for all and sundry to engage in the trading of Bitcoin through cryptocurrencies. This should be an urgent call because in it is the safety and ease of dealing with money as well as conquering the fear of thievery, loss and money accountability.

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