>You wouldn't believe how rare it is for me to meet someone who agrees with this. I'm in leadership at a web3 company and I need to reiterate this point over and over again. NFTs don't have intrinsic value OR arbitrary value. ERC20s don't have intrinsic value OR arbitrary value. If it doesn't tie back into user psychology, it's not worth anything.
I came to a similar conclusion: The sole criterion for the viability of a currency is acceptance in trade.
This simple truism explains every currency that "works" and every one that didn't all at once.
It can be a terrible currency, but if it's generally accepted in trade, too bad. Governments can mandate it, but that won't always save it. Just look at Zimbabwe dollars. They were official. And all but worthless. USD is accepted worldwide, even though its based on less than even a shitcoin, and 90% of it doesn't physically exist according to the Fed themselves.
What does "The full faith and credit of the the United States government" mean? You can't redeem dollars bills for anything from the govt as far as I know.
You can only buy bonds from the government in dollars, the government only pays interest on those bonds in dollars, and the bonds are only redeemed for dollars when they mature.
I came to a similar conclusion: The sole criterion for the viability of a currency is acceptance in trade.
This simple truism explains every currency that "works" and every one that didn't all at once.
It can be a terrible currency, but if it's generally accepted in trade, too bad. Governments can mandate it, but that won't always save it. Just look at Zimbabwe dollars. They were official. And all but worthless. USD is accepted worldwide, even though its based on less than even a shitcoin, and 90% of it doesn't physically exist according to the Fed themselves.