I only have a little understanding about the idea of currency and its value although i've already been at it all my life. Any currency or commodity has perceived value, because people gives it value. Why do people want to use a little piece of paper to buy a cup of imported coffee from a coffee shop? Why does the coffee shop vendor want that piece of paper? The simple reason is that people believe that the piece of paper are backed by the government and the government guarantee it's value.