It has remained a factual story; fiat currency is a long run lost. It is one of the needed raised questions of was money even designed to be an asset or just a means of transaction? I will go for the latter although many countries have used it to put themselves in situations of high debt. It is something we are looing at a possible solution in the future or will there ever be? Let’s cite Bitcoin as an example; this shows there some hopes lefts.
That said, lets delve much deeper into the main context of this article. By the way, what prompted this article was a thread I saw on chain concerning how dollar has wasted away overtime. I was really left in awe and had to do some research centering beyond just the US dollars. Many countries’ currency has indeed faded away. Anyway, while others have taken a longer time to manifest, some has been a SWIFT wild wild west.
His Threads focus was the purchasing Power of US Dollars in the month of June till date. Looking at just four presented: 1950 = $1:$1 1975 = $1:$0.55, 2000 = $1:0.$14 and the current year 2025 = $1:$0.07. Ok, NOW I am sure my grandpa would have decided to go back to sleep assuming he woke up from his dead sleep to realise his $1 is NOW worth $0.07. doing some calculations here, it means $1,000,000 in 1950 equals $70,000 in 2025. This indeed causes for a lot of financial fears. It has been 75 years of downtrend to the US dollars.
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How will the Next 75 years look like? Are we looking at a future where fiat will have to be erased? I have discussed something like this in one of my recent articles how ALL the entire economic activities show fakeness signs; I mean, when will all these debts ever be cleared (indeed a counterfeit economy). Should investors continue to throw in the money on dollar as an asset? Of course, it still remains the strongest unit of global exchange. Many are focusing on how blockchain tech can help revolutionize fiat. Maybe an inception like the Genius Acts will go along way here. Personally, the problem of fiat is in it backupless printing.
We saw such situation in the Venezuelan currency. There was a more government money printing that expanded its monthly money inflow rate within 20% to 30% from the central bank. 1 VES is currently trading at around $120 against the dollar. You can see how it will affect insider marketers who depend on imports. My further research shows the Venezuelan Bolivar is the third weakest country. Wow! This calls for further research as to where the other two can be, maybe an article for another.
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I am very sure it is not the Nigerian Naira. I have made an urgent run through; 1 VES is about 13 NGN. It has also been one of those devaluation tales and stains for the Nigerian naira. Insider investor has had to absorb the economic pressure. We are talking of high operational cost, I can attest to this as an entrepreneur. We saw all time high history: naira trading at N1900 against $1 dollar last year. It seemed there was going to be a recovery but it is gradually crawling back to where it peaked to. An economy that is most dependent on SMEs gets hits hard, what are the implication? This market will definitely shrink and it will be difficult for the low and middle class to access low and quality priced resources.
To conclude, let me add, currency devaluation is bringing so many economic stains both at the global and local markets. Investors uncertainties are rising; many entrepreneurs are shutting down (worse for SMEs as in the case of the Nigerian market and economy. Looking from what we have at hand, there are no current tangible strategies for the NGN to gain value against the dollars. Anyway it seems a big opportunity for NGN/USD pairs in the financial markets.
Even with that, the USD has its stains tales too. How much percentage decline have we seen from 1950 – 2025? This still boils back to the incompatibility of fiat. I feel many investors will soon shift grounds mostly to fiatless asset. It has been happening underground anyway, financially intelligent investors have always placed value on appreciating assets like land, gold and the rest. I feel it will enter its massive state of adoption and who knows maybe this may be the death of fiat or can stablecoins bring life as it is expected to refurbish dollars? Time will tell.
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