How do societies initially trust using money when it has no inherent value?
In: Economics
Trust is built up by being proven it can be trusted. The first paper money were paper certificates written up by rich merchants who owned big vaults that they rented out to others so others can store their gold for safe keeping.
Trust is also lost when that same currency proves untrustworthy. There have been many instances in history when currencies have lost their value because people lost their trust in it.
Trust is built up like any product. First, there’s the early adopters, then the followers, and last are the late adopters.
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