“How much value would FIAT hold if people just stopped believing it holds value?”
Posting that kids book is no insult it will answer this question for you.
Fiat paper money used to be certificates to redeem your gold on demand, until they severed that. Now it’s just paper so you think it’s a hallucination and in a sense you’re correct. However, it has a back story you should learn.
This is the website that made me go clic… I understand Bitcoin. https://wtfhappenedin1971.com/
Been down the rabbit hole since 2019, every day a little deeper, wish I had fallen a bit faster.
I am just certified weird and sometime express myself in odd ways. I mean no harm.
Non taken. Great website. I think you need to go back to first principles. You seem to focus a lot on fiat and not so much on the history of money, value, energy, etc. Fiat is a relatively new concept as well. (500 years)
I think there are many examples in the history of mankind where the concept of money makes for interesting and odd stories. (A salary being called a salary because of salt… )
You mention energy, and I think this is where it gets interesting. Sorry to stay in recent times…
The petrodollar. Energy. Portable energy needed to fuel entire nations. Forced to be attached to the dollar. USD gets a whole lot of its “value” from petrol and other sources of power.
Electric money. The money for the new energy, which has become and will become even more portable. You can harness it yourself at home, you can create it and many ways and the competition for cheap prices will do wonders in the long term.
Energy is a huge factor in that attempt at transitioning to another form of money.
Supply and demand determine value.
Dollars have value because there is demand for dollars.
Bitcoin has value because there is demand for Bitcoin.
The difference between these two currencies is the supply. Supply is the other half of the equation that affects value.
