We put our value in many everyday items even though there is no real tangible value to it. Money on the other hand is tangible value that is worldwide. However, when it comes to fiat currency, is it truly valuable? Or is it simply valuable because we just believe that?
First off, what is fiat currency? “Fiat money is currency that a government has declared to be legal tender, but it is not backed by a physical commodity. The value of fiat money is derived from the relationship between supply and demand rather than the value of the material from which the money is made” (Radcliffe). It was first introduced as a substitute to a commodity-backed currency, but this currency is not backed up to any physical reserves, so it is worthless when hyperinflation comes into play. Just like if people in America stop using the U.S. dollar, it won’t have any value. Continue reading Post ID 710
