> Does this mean fiat currencies have intrinsic value? If so, how is this value more 'intrinsic' than the value a network gives a cryptocurrency? Because you a

> Does this mean fiat currencies have intrinsic value? If so, how is this value more 'intrinsic' than the value a network gives a cryptocurrency? Because you are required to pay taxes. > although Modern Monetary Theory would argue the two are effectively the same Actually, if I understand correctly, MMT would argue that a central bank has very little control over money supply(other than in the rare case of acting as a "lender of last resort"). Instead, money is created through the act of deficit spending. http://bilbo.economicoutlook.net/blog/?p=1623 http://bilbo.economicoutlook.net/blog/?p=1623 A helpful illustriation by MMT'er Warren Mosler > The question is, “How do you turn litter into money?” > So, I take my business cards out here, and these are twenty dollars a piece, if anybody wants to buy any. No? Any takers? No? Okay. > All right, well if anybody wants to stay after and help clean up the carpet and tidy up the room, I’m going to pay one per hour. Or five per hour, or whatever, one per hour. Anybody want to stay and help? Okay, not a lot of takers. > Then I add one more thing: Look, there’s only one way out of here and there’s a man at the door with a nine millimeter machine gun. Okay? And you can’t get out of here without five of my cards. > Now things have changed. I’ve now turned litter into money. Now, you will buy these, you will work for these things if you want to get out. The man at the door is the tax man and that’s the function of taxes.