Ralph Hogendahl on Nostr: What are the 3 main characteristics of a money that is dying? A money that is ...

What are the 3 main characteristics of a money that is dying?

A money that is dying—losing its function as a reliable store of value, medium of exchange, or unit of account—typically shows these three main characteristics:

1. Rapid Loss of Purchasing Power (High Inflation or Hyperinflation):
Prices rise quickly and unpredictably. People rush to spend money before it loses more value, leading to a collapse in trust and long-term planning.

2. Loss of Public Confidence:
People stop trusting the currency. They might prefer foreign currencies, barter, or hard assets like gold, real estate, or crypto. The local money becomes a last resort.

3. Breakdown of Monetary Utility:
The money no longer effectively serves its basic functions. It’s no longer accepted widely, accounting becomes unreliable, and economic coordination breaks down.

If all three are happening, the currency is likely already in its terminal phase.