Greetings to my esteemed friends on the #Question&Answer community and the entire hive blockchain. It's another day and time to share with you some interesting tips concerning currency and how they tend reduce through debasement. It's your friend 
I'm actually beginning a series and lessons that'll help users of the Cent platform to understand some crypto and finance terminologies. I'll coming with different topics from Leoglossary and today we'll be looking at the term Debasement. Stay tuned as unveil what debasement is all about.
What is Debasement?
Debasement is the lowering the value of a currency. This is historically associated with coinage or specie.
There were a couple ways debasement takes place with coinage.
Traditionally, people would engage in clipping, which was cutting slivers off the coin. The effect was the lowering of the weight. Here is where the commodity value of the money declined.Source
Governments and others who had control over the mint also used debasement of coinage. This was done by using an alloy in newer coins. This resulted in the formation of Gresham's Law proposing that bad money drives out good money. Since the newer coins were lower in metallic value, it was undervalued as compared to the other coins.
During this process the government can force the new coin on merchants and quickly the new currency will be circulated.
Debasement helps governments to increase their financial spending in achieving more infrastructural development without taxing their citizens. This on its own might have a good motive but it has negative impacts on the economy. It should be noted that this increase supply but doesn't increase the value.
All of these maneuvers are shortsighted of course, as debasement holds negative consequences for the citizenry, primarily in the form of inflation.
What is Leoglossary?
LeoGlossay is a resource center that focuses upon areas of investing, finance, and cryptocurrency. This is a database full of terms that will aid people in their learning about such topics.