Frequently Asked Questions
Understanding why fiat currencies lose value and how Bitcoin offers an alternative.
What does 'fiat goes to zero' mean?
It refers to the historical pattern where all fiat currencies (government-issued money not backed by a commodity) eventually lose all their purchasing power. Since fiat money can be printed in unlimited quantities, inflation erodes its value over time. Every fiat currency in history has either collapsed completely or is in the process of losing value.
Why compare fiat currencies to Bitcoin?
Bitcoin has a fixed supply of 21 million coins that can never be changed. This makes it the perfect measuring stick to track fiat currency depreciation. When we say 'the dollar is worth fewer satoshis,' we're measuring the dollar's declining purchasing power against a truly scarce asset.
What is a satoshi?
A satoshi (sat) is the smallest unit of Bitcoin, equal to 0.00000001 BTC (one hundred millionth of a Bitcoin). Just as a dollar has 100 cents, a Bitcoin has 100,000,000 satoshis. We use satoshis to measure fiat currency value because it provides more intuitive numbers as Bitcoin's price rises.
Has any fiat currency survived long-term?
No fiat currency has maintained its purchasing power over the long term. The British pound, one of the oldest currencies still in use, has lost over 99% of its purchasing power since becoming fiat. The US dollar has lost about 98% of its value since the Federal Reserve was created in 1913, and over 85% since leaving the gold standard in 1971.
What causes fiat currencies to lose value?
Fiat currencies lose value primarily through monetary inflation — when central banks create new money (often called 'money printing' or 'quantitative easing'). This increases the money supply, which dilutes the value of existing currency. Governments often resort to this to fund deficits, pay debts, or stimulate economies, but the long-term effect is always currency debasement.
Is Bitcoin guaranteed to go up?
Nothing in investing is guaranteed. Bitcoin is volatile and can experience significant price drops. However, over longer time horizons, Bitcoin has consistently gained purchasing power relative to fiat currencies. This is because Bitcoin's supply is mathematically fixed while fiat supply continuously expands. The thesis is not about short-term price movements but long-term purchasing power preservation.
What happened in 1971?
In 1971, US President Nixon ended the dollar's convertibility to gold (the 'Nixon Shock'), effectively ending the Bretton Woods system. This freed the Federal Reserve to create unlimited dollars without gold backing. Since then, the global monetary system has been pure fiat, and currency debasement has accelerated. The website wtfhappenedin1971.com documents the economic changes since this pivotal moment.
Where does the price data come from?
Our Bitcoin price data is sourced from CoinGecko's API, which aggregates prices from major cryptocurrency exchanges worldwide. This provides reliable, real-time pricing data that reflects actual market conditions.
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