Quote from: BTC_BTC on September 07, 2018, 01:02:23 AM

Quote from: BobK71 on April 03, 2018, 08:42:24 PM

See:

There Is No Escaping History. Fiat Currency Eventually Fails.

Notice that this is a critique of fiat money -- not a critique of state-issued money under a gold/silver or other standard. Fiat money is a rare occurrence in modern history. (We live in strange times!) As we can see, the examples found by the author are a small number of short periods here and there.

I have my own critique of gold/silver standards, but that's another issue.

Fiat money is money that has no intrinsic value (material value). He only keeps extrinsic value, namely the recognized exchange rate and obtains legality from the state.

I understand what you want to say and in most cases it is quite reasonable to assume that fiat doesn't have any intrinsic value. However, technically, money, any money for that matter, has a certain intrinsic value for just being money, for being used as money. It is specific to an object being money, not the object itself. This is called transactional utility, which essentially comes down to advantages that money provides over direct exchange of things, in other words, barter. And this utility can be measured in money terms too, i.e. in the same money (understanding that is not quite straightforward, though). It is called the price of money, and it typically considered to match the overnight interest rates that large banks use to borrow and lend from each other in the interbank credit market.