Before the gold standard was dropped, it was relatively easy to understand where money got its value.
Money represented a certain proportion of gold in a country’s National Reserve. The money could be cashed in for gold, a very physical and tangible item. That all makes sense.
But we don’t use that anymore. So isn’t the money just paper? I don’t see how this system makes sense anymore.
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The belief is all it takes to create the value. If enough people believe and trust that the systems reliable enough not to crash….then itll just keep the snowball rolling. The wealth is created by believin, if u believe theyll pay you back u can let more borrow then trust they will make payment that u can use to let even more borrow and make payments. And the only think everyone’s gotta do is keep the faith and dont stop believing (and trying not to think too hard about it just go with it and keep fingers crossed)
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