Why does paper money have value?
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Because we all agreed on it as a token to carry value.
Intresting enough, the first valuables that were used as currency where shells and special stones, at some points in some cultures they were big boulders and they only carried value, because for shells, it was a sign for people more continental, that someone traveld a lot, and boulders because they took a certain man power to be brought to the point of transaction.
‘We’, to be precise the chinese invented paper money as in ‘someone owes the owner of this paper valuables of amount X’. It’s way easier than carrying around boulders. So thats that.
Todays money is still just some sort of this kind of transaction. So you put in man power at work and get a digital value out of it put in your bank account so you can pay for things with plastic cards or just get some of the sweet paper to pay for stuff.
Hope this answers your question or gives you a perspective as to way we use paper money.
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