Fiat is Dead

"Oh look, another doomsayer echoing what many have claimed since the very dawn of fiat currencies."

No! It is different this time. Allow me to present my arguments.

Fiat is a broken monetary system. Because:

One, the distribution of wealth with respect to fiat is uneven. This is a gross understatement of course.

Two, fiat wealth does not "trickle down" like many economists hoped it to. In fact, high concentrations of wealth tend to attract more wealth; and conversely no wealth attracts none.

Three, those who possess fiat wealth enslave those who do not have enough by extending credit. Need a house? Mortgage it. Car? Autofinance. Do you want to study? Do you want to have access to one of the basic human rights that has the potential to change how you live your life? Here, have a financially crippling student loan.

None of these arguments are new; in fact, that the wealthy few do economically enslave the less fortunate masses is one of the premises that Karl Marx expounded within his works.

How will it die then?

Enter cryptocurrency. A marvel of our time with the potential to disrupt wealth as we know it.

But how will crypto kill fiat, eh?

Cryptocurrency will not kill fiat.

It is fiat that will kill itself. And entirely through that hitherto self serving mechanism of financial greed we briefly touched upon, called credit.

You see, credit is as good as fiat that is redeemed at some point in the future.

And despite being inundated with credit, financial institutions endeavour to force more down our ignorant throats.

The epitome of this I feel is the new facility to buy food in a South African grocery chain on credit. Imagine getting a phone call from callous credit sharks for buying a bunch of mushrooms.

Food for credit enslaves a vulnerable group who cannot afford food, have mouths to feed and miraculously qualify for credit despite their categorically being unable to.

And when the impoverished folk cannot repay their loans, the fiat on which these loans are based crashes catastrophically.

I foresee financial institutions extending more and more credit. And I foresee the vulnerable taking on this credit without challenge.

And a time will come when there is far too much credit in the world, and far too little capacity for repayment. What worth will fiat have when people walk away from their debts?

The end of fiat draws near. And greed will be it's murderer.

(PS If we all put our minds to it and took out ridiculous loans, we could crash fiat overnight - I'm just saying)