Why Currencies Fail & What It Means in 2025 

Currencies collapse due to:  

1. Hyperinflation – Money printing destroys value (e.g., Zimbabwe, Venezuela).  

2. Political Crisis – Regime changes or breakups replace currencies (e.g., Soviet ruble).  

3. Monetary Unionsb– Shared currencies (like the euro) erase national money.  

4. Economic Reforms – High inflation forces redenomination (e.g., Turkey’s lira).  

5. Lost Trust – People switch to crypto or foreign cash when faith fails.  

6. Digital Shift – CBDCs and crypto challenge traditional money (e.g., Nigeria’s eNaira).  

Impact Today:  
- Prices soar, savings vanish (Nigeria’s 34% inflation in 2024).
  
- Trade suffers as weak currencies raise import costs.  

- Protests erupt when inequality grows (e.g., Nigeria’s fuel riots).  

- Global risks – One crash can spook investors worldwide.  

- Digital alternatives rise (Bitcoin, CBDCs), but adoption lags.

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