Fiat currency is difficult to hold because it is not backed by physical commodity such as gold or silver. Instead its value is derived from the government that issues it and the trust people have in that government. This means that the value of fiat currency can fluctuate greatly depending on economic and political factors. Inflation is also a major concern with fiat currency. When the government prints out too much money, the value of each individual unit of currency decreases, leading to inflation. This can make it difficult to save and invest in the long term, as the value of savings can be eroded over time. Additionally, fiat currency is subject to the risks of economic and political instability. If a government experiences a financial crisis or political change, the value of its currency may drop, making it difficult to hold on to.