Quote from: devphp on June 01, 2014, 07:42:18 PM

Quote from: igorr on June 01, 2014, 07:23:53 PM

this is not true,
money must have backed in something

In the 19th century each dollar was pegged to a certain amount of silver or gold, same as many other currencies. You could go to a bank and redeem that amount of gold or silver for the bank note. That is what backing by something really is. Nowadays, you cannot do that, dollars, rubles, yuans are not pegged to anything, there is no backing. You can only purchase those goods, products and services at free market prices. You can do the same with cryptos. The difference is, fiat currencies are legal tender in a certain jurisdiction, meaning all businesses have to accept them and you also pay taxes in them. But fiat currencies are not backed by those materials and goods you have listed above. 'fiat' means 'by decree' of the government.

you cannot do that, for dollars but for other money you can do it. (rubles, yuan, chf, ......)