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>The intrinsic value of USD is it's the only currency you can use to pay taxes to the US government. This isn't intrinsic value. The government can conceivably
by FLUX-YOU 9y ago
>The intrinsic value of USD is it's the only currency you can use to pay taxes to the US government.
This isn't intrinsic value. The government can conceivably decide USD is worthless (it won't, probably ever, unless the US collapses). USD relies on the US government for value.
Being able to burn money to start a fire would be intrinsic value. Same for gold's conductivity and its other industrial uses. They are physical properties.
- DSingularity 9y agoI think its a stretch to say that the US gov will decide USD is worthless. So the expected intrinsic value is as he stated, the power of the US government to levy taxes. I would also include the domination of the USD in oil trade as another intrinsic value.
- paulgb 9y agoIntrinsic value is a term with specific meaning going back to the days of commodity money. I don't disagree with your point, but by definition the things you mention are not intrinsic value in the monetary theory sense.