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‌Fiat Currencies and Purchasing Power

Throughout history, every fiat currency has lost purchasing power over time due to inflation. As governments expand the money supply and prices rise, the same amount of currency typically buys fewer goods and services.

Historical research also suggests that fiat currency systems have an average lifespan of around 27 years, although this figure varies depending on how "lifespan" is defined and the historical period examined. Some currencies are replaced entirely, while others continue to exist despite significant declines in value.

This highlights the importance of preserving purchasing power through prudent financial planning and diversified assets, rather than relying solely on cash over the long term.

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