this post was submitted on 08 Feb 2025
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To quote Brian Brushwood, "It's just pieces of paper that we believe in."
The reason that you and everyone else believe in it is primarily because you need it to pay taxes, so the belief is not arbitrary.
Lots of people don't have to pay taxes.
True, but somene has to, and they will create a demand for the currency. If I hear that Joe the baker needs money to pay taxes, and I want to buy bread from him, I know he will accept the government currency as payment for his bread. This in turn makes me demand money to be able to buy the bread.