{"id":31454,"date":"2026-05-25T12:08:59","date_gmt":"2026-05-25T12:08:59","guid":{"rendered":"https:\/\/www.bitnovo.com\/blog\/?p=31454"},"modified":"2026-05-25T12:11:12","modified_gmt":"2026-05-25T12:11:12","slug":"fiat-money-and-inflation-why-your-money-is-worth-less-every-year","status":"publish","type":"post","link":"https:\/\/www.bitnovo.com\/blog\/en\/fiat-money-and-inflation-why-your-money-is-worth-less-every-year","title":{"rendered":"Fiat money and inflation: why your money is worth less every year"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-transparent ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Alternar tabla de contenidos\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #ffffff;color:#ffffff\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #ffffff;color:#ffffff\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/fiat-money-and-inflation-why-your-money-is-worth-less-every-year\/#the_origin_of_the_problem_how_fiat_money_was_born\" >The origin of the problem: how fiat money was born<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/fiat-money-and-inflation-why-your-money-is-worth-less-every-year\/#why_is_fiat_money_issued\" >Why is fiat money issued?<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/fiat-money-and-inflation-why-your-money-is-worth-less-every-year\/#how_central_banks_create_money_out_of_nothing\" >How central banks create money out of nothing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/fiat-money-and-inflation-why-your-money-is-worth-less-every-year\/#inflation_as_a_symptom_of_fiat_money\" >Inflation as a symptom of fiat money<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/fiat-money-and-inflation-why-your-money-is-worth-less-every-year\/#advantages_and_limitations_of_the_fiat_system\" >Advantages and limitations of the fiat system<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/www.bitnovo.com\/blog\/en\/fiat-money-and-inflation-why-your-money-is-worth-less-every-year\/#what_alternatives_exist_to_fiat_money\" >What alternatives exist to fiat money?<\/a><\/li><\/ul><\/nav><\/div>\n<span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span><p>The European Central Bank has <a href=\"https:\/\/ec.europa.eu\/eurostat\/statistics-explained\/index.php?title=Inflation_in_the_euro_area\">reported<\/a>: inflation in the eurozone has escalated to 3% in April 2026, reaching its highest level since 2023. You have surely noticed it when paying for groceries or reviewing your bills. However, behind this percentage there is a fundamental reality that very few people truly understand:\u00a0<strong>how <a href=\"https:\/\/www.bitnovo.com\/blog\/en\/what-is-fiat-money-money-by-decree\">fiat money<\/a> works<\/strong>\u00a0and why its real value is never guaranteed.<\/p>\n<p>The word\u00a0<em>fiat<\/em>\u00a0comes from Latin and means\u00a0<strong>\u201c<a href=\"https:\/\/en.wikipedia.org\/wiki\/Fiat_money\">let it be done<\/a>\u201d<\/strong>\u00a0or\u00a0<strong>\u201cby decree.\u201d<\/strong>\u00a0When you use euros, dollars, pounds, or yen, you are not using money that is worth something by itself. Unlike the old gold standard, where each bill was equivalent to a portion of precious metal,\u00a0<strong>fiat money is a currency issued by a government<\/strong>\u00a0whose only backing is\u00a0<strong>trust<\/strong>. Trust in the stability of the issuer, in its laws, and that the rest of society will continue accepting those paper notes or digits on a screen to buy and sell.<\/p>\n<p>This system grants central banks absolute power: to regulate the money supply, set interest rates, and, fundamentally,\u00a0<strong>to print or create money out of nothing<\/strong>. And here is where the\u00a0<strong>inflation trap<\/strong>\u00a0appears.<\/p>\n<p><img fetchpriority=\"high\" decoding=\"async\" class=\"aligncenter wp-image-31455 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/1-1.jpg\" alt=\"bitnovo_inflation_and_fiat_money\" width=\"2560\" height=\"1440\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/1-1.jpg 2560w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/1-1-300x169.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/1-1-1024x576.jpg 1024w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/1-1-768x432.jpg 768w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/1-1-1536x864.jpg 1536w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/1-1-2048x1152.jpg 2048w\" sizes=\"(max-width: 2560px) 100vw, 2560px\" \/><\/p>\n<p>The economic rule is mathematical: if the amount of money in circulation increases at a much faster rate than the real goods and services the economy produces,\u00a0<strong>each individual bill becomes worth less<\/strong>.<\/p>\n<p><strong><a href=\"https:\/\/en.wikipedia.org\/wiki\/Euro\">Fiat money<\/a> is, by its very nature, especially vulnerable to this phenomenon.<\/strong>\u00a0Since there is no physical limit to restrain its creation, governments resort to issuing liquidity to finance debts or manage crises. The direct consequence is paid by you through a\u00a0<strong>constant loss of purchasing power<\/strong>. Inflation is not that things become more expensive; it is that\u00a0<strong>your money is silently devaluing year after year<\/strong>.<\/p>\n<p><strong>Saving under the rules of the traditional game no longer works as it used to.<\/strong>\u00a0Keeping money static in a system designed to progressively lose value means accepting, without voting,\u00a0<strong>an invisible tax<\/strong>\u00a0that reduces what you can buy with the effort of your work.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31456 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/2-1.jpg\" alt=\"bitnovo_origin_of_fiat_money\" width=\"500\" height=\"397\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/2-1.jpg 500w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/2-1-300x238.jpg 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"the_origin_of_the_problem_how_fiat_money_was_born\"><\/span><strong>The origin of the problem: how fiat money was born<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Until 1971, the global financial system was governed by the\u00a0<strong>gold standard<\/strong>. The US dollar, the world&#8217;s reference currency, was backed by this precious metal; each bill in circulation was not a simple piece of paper, but\u00a0<strong>a certificate representing a real, physical, and tangible quantity of gold<\/strong>\u00a0safeguarded in vaults.<\/p>\n<p>However, on August 15, 1971, the then President of the United States, <strong>Richard Nixon<\/strong>, unilaterally broke that link by suspending the convertibility of the dollar into gold.<\/p>\n<p>From that moment on, money changed its nature forever: it ceased to depend on a physical and limited resource. From that break onward, money exists solely and exclusively\u00a0<strong>because governments so decree<\/strong>, sustaining its value only in\u00a0<strong>the authority of the State<\/strong>\u00a0and in\u00a0<strong>the trust of the people<\/strong>.<\/p>\n<p><img decoding=\"async\" class=\"aligncenter wp-image-31457 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/3-1.jpg\" alt=\"bitnovo_how_central_banks_create_money\" width=\"612\" height=\"408\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/3-1.jpg 612w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/3-1-300x200.jpg 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>\n<h3><span class=\"ez-toc-section\" id=\"why_is_fiat_money_issued\"><\/span><strong>Why is fiat money issued?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n<p>The elimination of the gold backing gives governments the flexibility to manage the economy dynamically. Its main reasons are:<\/p>\n<table style=\"height: 180px;\" width=\"1129\">\n<thead>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Reason for issuance<\/strong><\/p>\n<\/td>\n<td>\n<p style=\"text-align: center;\"><strong>What is it for?<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Economic control<\/strong><\/td>\n<td>Allows regulating the amount of money to influence inflation and interest rates.<\/td>\n<\/tr>\n<tr>\n<td><strong>Political flexibility<\/strong><\/td>\n<td>Money creation is not limited by the physical reserves of a raw material.<\/td>\n<\/tr>\n<tr>\n<td><strong>Facilitating trade<\/strong><\/td>\n<td>Offers a common medium of exchange that eliminates the obstacles of barter.<\/td>\n<\/tr>\n<tr>\n<td><strong>Stability and trust<\/strong><\/td>\n<td>A currency backed by a strong government encourages its widespread use.<\/td>\n<\/tr>\n<tr>\n<td><strong>Financing the government<\/strong><\/td>\n<td>Allows funding public services and infrastructure without relying solely on taxes.<\/td>\n<\/tr>\n<tr>\n<td><strong>Monetary sovereignty<\/strong><\/td>\n<td>Ensures that the State makes economic decisions without external interference.<\/td>\n<\/tr>\n<tr>\n<td><strong>Crisis management<\/strong><\/td>\n<td>Allows injecting emergency liquidity (quantitative easing) during recessions.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31458 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/4-1.jpg\" alt=\"bitnovo_advantages_of_fiat_money\" width=\"612\" height=\"349\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/4-1.jpg 612w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/4-1-300x171.jpg 300w\" sizes=\"(max-width: 612px) 100vw, 612px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"how_central_banks_create_money_out_of_nothing\"><\/span><strong>How central banks create money out of nothing<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>In the fiat system,\u00a0<strong>central banks have the absolute <a href=\"https:\/\/www.bde.es\/wbe\/en\/areas-actuacion\/politica-monetaria\/preguntas-frecuentes\/definicion-funciones-del-dinero\/como-se-crea-el-dinero.html\">power to issue<\/a> more money<\/strong>\u00a0when they deem it necessary, without needing to be backed by gold or any physical good. Today, this process does not require turning on the printing presses; it is done digitally through\u00a0<strong>a simple electronic entry in their balance sheets<\/strong>. The process is executed mainly through three key steps:<\/p>\n<ol>\n<li><strong>Asset purchases (Quantitative Easing or QE):<\/strong>The central bank decides to buy government debt bonds or financial securities held by commercial banks.<\/li>\n<li><strong>Digital creation:<\/strong>To pay for those bonds, the central bank generates new money digitally on its balance sheet and deposits it into the accounts that commercial banks hold within the central bank itself.<\/li>\n<li><strong>The multiplier effect:<\/strong>With these new digital reserves in their hands, private commercial banks grant more credits and loans to companies and citizens,\u00a0<strong>multiplying the money in circulation<\/strong>\u00a0within the real economy.<\/li>\n<\/ol>\n<p><iframe title=\"\u00bfC\u00f3mo crean dinero los bancos centrales?\" width=\"500\" height=\"281\" src=\"https:\/\/www.youtube.com\/embed\/uLkPmeFIACw?start=375&#038;feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n<p>Now, this power to issue money unlimitedly has a direct and daily impact on people&#8217;s pockets:<\/p>\n<ul>\n<li><strong>The invisible tax of inflation:<\/strong>With more money chasing the same amount of goods and services, the value of each monetary unit decreases.\u00a0<strong>Money is diluted.<\/strong><\/li>\n<li><strong>Less purchasing power:<\/strong>When the central bank abuses this mechanism and injects too much liquidity, the prices of food, housing, and services rise. As a result, the average citizen needs more bills to buy exactly the same things,\u00a0<strong>destroying their savings capacity<\/strong>\u00a0and reducing their quality of life.<\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"inflation_as_a_symptom_of_fiat_money\"><\/span><strong>Inflation as a symptom of fiat money<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Inflation is not a financial accident nor an unpredictable phenomenon; it is\u00a0<strong>a structural characteristic of fiat money<\/strong>. By having no physical limit nor being backed by a finite asset like gold, central banks can constantly expand the money supply. When the amount of money in circulation grows faster than the real production of goods and services, the value of each bill decreases and prices inevitably rise.\u00a0<strong>Money is diluted.<\/strong><\/p>\n<p>Truly, this problem is not theoretical; it happens on a daily basis. As a reflection of the constant pressure in modern fiat systems,\u00a0<strong>inflation in the eurozone stood at 3% in April 2026<\/strong>. The main driver of this increase was the energy sector, whose prices soared by 10.9%, directly making production, transportation, and the cost of living more expensive for citizens.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31459 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/5-1.jpg\" alt=\"bitnovo_limits_of_fiat_money\" width=\"512\" height=\"512\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/5-1.jpg 512w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/5-1-300x300.jpg 300w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/5-1-150x150.jpg 150w\" sizes=\"(max-width: 512px) 100vw, 512px\" \/><\/p>\n<p>So, when governments lose control of the printing press to finance their deficits, the symptom of inflation becomes\u00a0<strong>a mortal disease for the economy<\/strong>.<\/p>\n<p>The most emblematic historical example is the\u00a0<strong>German hyperinflation of the 1920s (Weimar Republic)<\/strong>\u00a0. During that period, the German mark lost so much value that the government issued bills worth trillions of marks. Prices doubled every few hours and money became so worthless that citizens used it to light fires or as wallpaper, demonstrating the final destination of a fiat currency when\u00a0<strong>trust in it is completely destroyed<\/strong>.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"advantages_and_limitations_of_the_fiat_system\"><\/span><strong>Advantages and limitations of the fiat system<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The current fiat monetary system is neither perfect nor definitive, but rather\u00a0<strong>an economic engineering <a href=\"https:\/\/www.bde.es\/wbe\/en\/areas-actuacion\/politica-monetaria\/preguntas-frecuentes\/definicion-funciones-del-dinero\/es-el-dinero-fiduciario.html\">tool<\/a><\/strong>. To understand its functioning honestly and objectively, it is necessary to analyze both the capabilities it grants States and the structural risks it introduces into the global economy.<\/p>\n<table style=\"height: 129px;\" width=\"1121\">\n<thead>\n<tr>\n<td>\n<p style=\"text-align: center;\"><strong>Advantages<\/strong><\/p>\n<\/td>\n<td>\n<p style=\"text-align: center;\"><strong>Limitations<\/strong><\/p>\n<\/td>\n<\/tr>\n<\/thead>\n<tbody>\n<tr>\n<td><strong>Crisis flexibility:<\/strong>\u00a0Allows central banks to react quickly by injecting liquidity or adjusting interest rates to stabilize the economy during a recession.<\/td>\n<td><strong>Dependence on trust:<\/strong>\u00a0Money has no intrinsic value; it works only as long as society trusts the political and fiscal stability of the issuing government.<\/td>\n<\/tr>\n<tr>\n<td><strong>Facilitation of trade:<\/strong>\u00a0Functions as an agile and globally accepted medium of exchange, eliminating the costs of storing and transporting physical goods like gold.<\/td>\n<td><strong>Vulnerability to inflation:<\/strong>\u00a0The ability to create money out of nothing generates the risk of issuing excessively, which dilutes the citizen&#8217;s purchasing power.<\/td>\n<\/tr>\n<tr>\n<td><strong>Financial dynamism:<\/strong>\u00a0Facilitates the expansion of credit to finance infrastructure, businesses, and public services according to market needs.<\/td>\n<td><strong>Debt accumulation:<\/strong>\u00a0Access to unlimited financing encourages chronic deficits in States, which in extreme cases can lead to financial collapse.<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31460 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/6-1.jpg\" alt=\"bitnovo_why_your_money_is_worth_less\" width=\"500\" height=\"313\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/6-1.jpg 500w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/6-1-300x188.jpg 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"what_alternatives_exist_to_fiat_money\"><\/span><strong>What alternatives exist to fiat money?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Historically, faced with the loss of value of fiat money due to uncontrolled issuance, citizens have always sought refuge in\u00a0<strong>scarce assets<\/strong>. Traditional goods such as\u00a0<strong>gold<\/strong>\u00a0and\u00a0<strong>real estate<\/strong>\u00a0have been the historical vehicles for protecting long-term wealth, since they cannot be multiplied out of nothing.<\/p>\n<p>In the current era,\u00a0<strong>cryptocurrencies<\/strong>\u00a0have emerged as the digital alternative to this problem, offering a system based on\u00a0<strong>decentralization<\/strong>,\u00a0<strong>limited supply<\/strong>, and\u00a0<strong>total resistance to arbitrary issuance<\/strong>.<\/p>\n<p>Unlike stablecoins, which are unlimited,\u00a0<strong>Bitcoin has a strict limit of 21 million units<\/strong>\u00a0in its history, which completely eliminates the risk of inflation due to political printing. By being built on\u00a0<strong>blockchain networks<\/strong>, this ecosystem operates without the control of governments or intermediary banks, returning to the user\u00a0<strong>security<\/strong>,\u00a0<strong>divisibility<\/strong>, and\u00a0<strong>full self-custody<\/strong>\u00a0of their money.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-31461 size-full\" src=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/7-1.jpg\" alt=\"bitnovo_hyperinflation_and_fiat_money\" width=\"500\" height=\"281\" srcset=\"https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/7-1.jpg 500w, https:\/\/www.bitnovo.com\/blog\/wp-content\/uploads\/2026\/05\/7-1-300x169.jpg 300w\" sizes=\"(max-width: 500px) 100vw, 500px\" \/><\/p>\n<p>Today, this new paradigm is not limited only to Bitcoin; there is a whole ecosystem of digital assets that includes everything from investment cryptocurrencies to stablecoins linked to the value of the dollar or the euro, allowing any citizen to protect their purchasing power with\u00a0<strong>total freedom and simplicity<\/strong>.<\/p>\n<p>The future of these two forms of money remains open. While cryptocurrencies still have a long way to go and regulatory and technological challenges to face,\u00a0<strong>the history of fiat money demonstrates the structural weaknesses<\/strong>\u00a0of the fiduciary model. This reality is, precisely, the great reason why more and more people decide\u00a0<strong>not to stand idly by<\/strong>\u00a0and explore the <a href=\"https:\/\/www.trmlabs.com\/es\/glossary\/fiat-currency\">adoption<\/a> of digital assets to <a href=\"https:\/\/www.trmlabs.com\/glossary\/fiat-currency\">protect<\/a>, at least, a percentage of their wealth.<\/p>\n","protected":false},"excerpt":{"rendered":"<p><span class=\"span-reading-time rt-reading-time\" style=\"display: block;\"><span class=\"rt-label rt-prefix\">Tiempo de lectura:<\/span> <span class=\"rt-time\"> 6<\/span> <span class=\"rt-label rt-postfix\">minutos<\/span><\/span>Since 1971, money has not been backed by anything tangible. This is how the fiat system works and why it explains the inflation we are paying today.<\/p>\n","protected":false},"author":12,"featured_media":31939,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[331],"tags":[],"class_list":["post-31454","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitnovo-en"],"_links":{"self":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/31454","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/users\/12"}],"replies":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/comments?post=31454"}],"version-history":[{"count":4,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/31454\/revisions"}],"predecessor-version":[{"id":31942,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/posts\/31454\/revisions\/31942"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media\/31939"}],"wp:attachment":[{"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/media?parent=31454"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/categories?post=31454"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.bitnovo.com\/blog\/wp-json\/wp\/v2\/tags?post=31454"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}