103.4 Lesson - FiatLosesValueOverTime

Screen: FiatLosesValueOverTime

Headline: Does this mean that all fiat money loses value over time?

Reward: 3

Text: That is correct.

In the history of the world, there have been 775 fiat currencies created. Most no longer exist, and the average life for any fiat money is only 27 years.

The British Pound is the oldest fiat currency. It has lost more than 99% of its value since 1694.

There is no precedent for any fiat money maintaining its value over time. This is inflation. It is effectively a form of theft of your own hard earned money !

=================================================================

QUIZ

Question: What happens to the value of all fiat money over time?

Answer: Every fiat currency that ever existed has lost a massive amount of value.

Feedback: Correct. This is true even for USD, which has lost 97% of its value during the last 100 years.

Correct: true

Answer: The value stays the same forever.

Feedback: Incorrect. Please try again.

Correct: false

Answer: The look and design of paper bills is updated every 10 years or so.

Feedback: Not quite. Although the design of papers bills may change, this has nothing to do with their value.

Correct: false