so how do you rectify this mentally that you live in a world driven by fiat currencies but the law of diminishing returns ensures on paper its not sustainable.

fiats have not existed since the dawn of time. its a social experiment basically. will people believe and accept that "nothing" has value because of our perceived economic status. its a gross oversimplification but in general thats how it is. you have x number of units and y amount of gdp growth so you can make i number of units before depreciation. but im supposed to just accept that its worth something and at any point any company can say its not worth as much as you think and increase pricing

crypto is like that too but with nothing backing it most of the time and just gambling