Can You See The Volatility Of Fiat Currency?

in LeoFinance2 months ago

Once you hear about cryptocurrency, the next thing you know it is too risky because it's highly volatile. Yes, crypto is volatile. How about fiat currency? You are warned about cryptocurrency. And fiat currency feels like a safe haven.

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When you talk to your parents about what they did to start making money, one thing they mention while saying the amount they earned is that, at that time, the value of money was high. You could do a lot of things with the fiat currency back then.

Maybe you are wondering what happened now. It is impossible to buy the same stuff with the same about of fiat currency that your parents bought back then. Your parents worked hard to make money and still work hard. If they keep everything in fiat currency, you can easily guess, how much they would lose now. That's the volatility of fiat currency no one is talking about.

Fiat currency is paper backed by the government, and people trust it. Simply you can measure the volatility by observing what you can buy with it. You have to pay more fiat currency eventually to buy different things. The purchasing power of fiat currency decreases and that's the truth.

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You can also compare the fiat currency of your country with the USD. It is surprising to see how much value has been depreciated against the USD. You are losing your hard-earned money due to the system itself.

So will you get out of the financial system? Well, you have to use fiat currency and stay in the existing financial system. You can invest in cryptocurrency and grow your wealth. Maybe we can see a huge change in the future. Understanding the risk of what you are holding is important. Cryptocurrency is highly volatile, but you cannot say there is no volatility in fiat currency.

The central bank will never talk about the risk of holding fiat currency. But they will always warn people about cryptocurrency and impose different restrictions. They will take more initiatives to crack down on cryptocurrency to "protect investors". Whom they intend to protect, that's an open secret.

When you make any financial decision, considering the risk is very important. You want to get the maximum return and protect your wealth. In case you are in a situation where you lose whatever you choose, it is better to choose something that makes you lose less. And you can change your financial decision based on the market situation.

So what do you think? Please feel free to leave your comments. Thank you for reading this post. That's it for now. I'll be back with another post.

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Hi, I am Rezoanul Vibes. I'm a content creator and passionate learner. I write about lifestyle, finance, martial arts, and digital marketing. I'm glad to meet amazing people all over the world.

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While it isn't as safe, there just isn't any alternative outside of it. The trust for a cryptocurrency to replace it hasn't taken place and most transactions happen in fiat. A bit part of any currency is the faith in it and people still trust it because they can still buy or sell things using it in normal society.

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That's why, we have to use fiat currency. Hope things will change in the future. Cryptocurrency will be used more in daily life.

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