Ask Leo : Fiat currency or cryptocurrency , which is a better asset to keep and spend daily......
HELLO HIVE
Just as the price of crypto assets continued to fall drastically many investors who are beginning to feel scared for their investments and are finding it difficult to watch them crash to the level they are getting to are beginning to convert their crypto assets to government issued currency like the US dollar.
This might help them secure their funds temporarily, but on a long time basis I don't think fait can do better than cryptocurrency this government issued currency that are not backed by any sort of physical asset can easily be manipulated by the government them selve reducing the amount of fait currency being issued might reduce the circulation of money and printing too much of it would cause very high inflation in the cases where the country begins experiencing this then the value of that currency might to the level where it could become completely worthless and the Nigerian currency Naira is a good example of this since in the faces of raising inflation the value of naira keeps on depreciating every day and the demand for naira during exchanges has completely dropped the Inflation has gotten to a level where even citizens don't can't even complain anymore the price of goods have doubled for most goods and have even gone as high as three times their initial price.
The fact that this type of currency are not tied to any asset either gold, silver or any other kind of asset means that they are solely tied to damand and and supply of this currency and the stability of the government.
The situation where citizens no more trust this naira as a currency and are starting to own what ever asset the have inform of the US dollar and even crypto has led to the currency losing its value.
Just few years back the exchange rate was around #300 for a dollar but now we are talking of exchanges of around #710 for a dollar so owners of crypto assets that are worth around $10,000 are millionaires around here.
So for long time purpose it is more risky to leave your investment in fait currency than in crypto but you can always run to this crypto if you are about to be eaten by the bear market to ensure you can still continue investing in the crypto market.
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