Fiat currency, which is paper money that is not backed by a physical commodity like gold, can be difficult to hold due to several economic factors. The first is inflation, which erodes the purchasing power of fiat currency over time. As more money is printed and circulated, the value of each individual unit decreases making it less valuable to hold onto. Another factor is the interest rates. When interest rates are low, it can be more attractive to invest money in other assets that offer higher returns, such as stocks or real estate. This can lead to a decrease in demand for fiat currency as people seek out alternative investments. Fiat currency can be a convenient means of exchange for day to day transactions, it can be difficult to hold onto as a long term store of value due to these economic factors.