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21 sats \ 0 replies \ @nerd2ninja 9 Dec 2023 \ on: If fiat currency is doomed, why hasn't it collapsed yet? bitcoin
This answer will give you some perspective I think.
What do you expect a monetary collapse to look like? Typically, its hyperinflation and we have seen that with multiple FIAT currencies. The type of collapse I believe people expect in the stronger FIAT currencies though, are the type of collapses that would actually hold together...if people were willing to put up with a period of monetary pain...followed by another period of monetary pain...followed by another period of monetary pain, so good so far I mean I'd say we have with 2008 and the monetary pain of COVID managed to only burn a few cities so far. Followed by monetary discomfort for 10 years followed by monetary pain....(housing crisis, cost of living crisis, uncomfortable inflation but not hyperinflation).
Are you following me? The collapse part in this case is more about what people do in response to monetary pain than it is about the pain itself.
I think when people watch Ray Dalio's "How the Economic Machine Works" they think its great. They feel comfort in knowing that it all works. They don't see or maybe they ignore the problems with it and think it all works out. Like there's a plan and we just have to follow it....