And she is right. The price of Euro or USD or RMB (or whatever Fiat currency represent their people) can never be 0. This is in stark contrast with crypto that can definitely go to 0 with double precision accuracy.
Just because you haven't lived long enough to see a major empire fall doesn't mean it won't happen eventually.
Inflation is just a symptom not the cause of an economic collapse.
If inflation is also something that is everyone's problem then my thesis is that it is nobody's problem.
They become worth nothing because people realize the central bank will inflate away the future value of any RMB, and thus holding RMB or any asset that derives value from future RMB (including stocks in businesses whose revenue or dividends are in RMB) become worth nothing.
Good money is supposed to be a good store of value as well. If RMB cannot store value, people will not use it. If people do not use it, it becomes worthless.
So even if you don't want RMB if the government pays you with RMB then you take it. That means that banks, contractors, employees etc all get RMB.
Government can also force trade parties to trade with its own currency, like Russia does today.
Venezuela was stripped of its manufacturing capabilities with the exit of foreign investment due to sanctions. Their former petroeconomy now is worth nothing.
The intrinsic value of their currency is lost, as the Venezuelan gdp in absolute terms disappeared.
Currency exchange rates is the least of their problems.
They are out of value. Not out of valuable cash.
Example: We imposed strict sanctions to Russia that almost cut any trade with them. Is the Russian currency valued at 0? Of course not. Because Europeans, Indians, Chinese are buying Russian currency to pay for Russian natural gas / oil.
https://www.npr.org/sections/money/2022/04/05/1090920442/how...
If you got rid of the government, the value of the currency might still go to zero, while the intrinsic value of the resources could still be worth something paid in another currency.
If there was no Russian government and army then you would just go in and take whatever resources you like at the cost of maybe a couple of bullets.
Transaction costs are not a factor in the worth of the asset.