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It's still worth something because the federal government says it's worth something. That's what a fiat currency is.
by Dirlewanger 7y ago
It's still worth something because the federal government says it's worth something. That's what a fiat currency is.
- ceejayoz 7y agoThat's not at all how it works. Zimbabwe and Venezuela's federal governments claimed their currencies were worth something until they were blue in the face. It's worth something because the people using it feel it's worth something, and that's true for non-fiat currencies as well. Bitcoin and gold are non-fiat, but still heavily depend on demand to determine their value.