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People do not trust "Federal Reserve notes" (or any other official currency) - they are forced to use it, since they must pay taxes in it. That doesn't explain
by caf 14y ago
People do not trust "Federal Reserve notes" (or any other official currency) - they are forced to use it, since they must pay taxes in it.
That doesn't explain why people continue to accept official currency in excess of their anticipated tax bill, or why criminals who aren't expecting to pay tax at all still deal in official currency.
- tsahyt 14y agoBecause it's easy to spend since others accept it. Money itself has absolutely no value at all. It's more a promise that somebody will accept it when you want to buy something with it.
- takluyver 14y agoWhich is precisely what the FBI report was describing: "they believe they can exchange the currency for goods, services, or a national currency at a later date."
- adambyrtek 14y agoThat's the whole point of fiat money, isn't it?
- brazzy 14y agoIt't the whole point of money, period.
- Daniel_Newby 14y ago> That doesn't explain why people continue to accept official currency in excess of their anticipated tax bill, ... It is legal tender for debts. Offering currency to a creditor extinguishes the debt, whether or not they accept it.
- sliverstorm 14y agoExactly. We trust USD to be accepted as legal tender for debts.