NOT IN THE SLIGHTEST, material will be worth the same amount always unless some market force changes the amount of material available, if a currency becomes obsolete or inefficient it is replaced immediately as was seen with Zimbabwean currency.... the country didnt change the value of their products when the currency became worthless, they simply got rid of the currency and people who invested in materials made money, those who didnt became sad. However its just occurred to me that if enough people became poor because of currency value decline then markets could be forced to adjust if they want people to buy their products. If the adjust doesn't happen quickly enough, then panic ensues and collapses happen.

I take it most here have never heard of the "bitcoin" currently worth something like 13 usd. Only x amount will ever be produced the number currently escapes me and doesn't really matter because the currency's value changes based on the value place on it. The currency can only ever become more valuable because of the fact that there is a limited number and that people want it.

The currency is somewhat difficult to explain however the best analogy i can think of would be if the old US dollar was backed by gold, and the current US dollar is backed by a belief in the government system, then bitcoins are based on the ability to solve a puzzle. YES THE ABILITY TO SOLVE PUZZLES! WHY? HOW? simple, you can mine bitcoins through the use of a graphics card and the more coins that are mined in total, the more difficult the puzzles become to solve. So less coins are produced for each unit of power your graphics card has.

BUT because so few people use the bitcoin its practically irrelevant. However if everyone used it, it would become an unregulated coin based solely on market fluctuations, graphics card power, and peoples imaginations.


In the end a currency is just a value holder for purchasing another object. If all currency failed then everyone would just go back to trading for things they needed and land as well as cows and other livestock or grains would become the currency, because those are intrinsically valuable to us as people who ingest food and live on land.


also @velair if they run out of new gold then the current gold becomes more valuable. and less gold will buy you more things.

also also @turtlenecks its been noticed that when the us dollar drops gold goes up in value because trading of gold is not done in gold coins, but usd.... since usd isnt backed by anything other than the us government it can be considered a fiat currency.