Modern money has symbolic value. Its symbolic value arises from belief that something of value stands behind it. Fiat money might be a scam or popular delusion, but is a widely accepted scam, ultimately backed by “faith” in the issuing government (i.e., the taxes it can levy) and an economy that can support taxation.
Please explain how “blockchain” actually work. What is the thing of intrinsic value that stands behind it? Who creates the money, and how?
In a nutshell...Blockchain is an open ledger, a chain of transactions that is transparent (yet anonymous). Each time a transaction is completed, a block is added to the chain by a node (computer) in the blockchain ecosystem. Tokens/Coins are many times considered the currency to be able to use the ecosystem, and many blockchains reward the nodes with coins (referred to as mining). Each chain is distributed in full across all of the nodes in the ecosystem so there is always concensus and accuracy, practically eliminating any fraud/manipuation/etc. Unless 51% of the nodes are compromised at the same time, the chains are always in agreement. Value is derived by the usage of the blockchain, plus coins are initially sold to investors to fund the development of the blockchain (like stock shares). Each blockchain is different (whereas Bitcoin requires mining, some blockchains issue all or partial coins immediately without mining).
You are confusing two terms. Money is not Currency. Money has an intrinsic value such as gold and silver. Currency, such as the US dollar and really any fiat currency system, is only a REPRESENTATION of value.
The dollar is not money.
As for an explination of crypto currencies, TD Ameritrade has a good article:
https://tickertape.tdameritrade.com/trading/bitcoin-cryptocurrency-basics-101-16210
“Modern money has symbolic value. Its symbolic value arises from belief that something of value stands behind it.”
the primary attribute of all useful currencies is universal believe or acceptance that they have value. Of course useful currencies have other attributes such as Portability, Indestructibility or Durability, Homogeneity, Divisibility, Malleability,Cognizability, and Stability of Value.
but “intrinsic value” is not an attribute of a useful currency, because very few thing (including gold) have intrinsic value, and the things that DO have intrinsic value, such as food, medicine, water, fuel, and energy make poor currencies and are good only for barter, which is why currencies were invented in the first place ...
Yes, now imagine if the POTUS was successfully removed by the soft coup. The world doesn’t appreciate how important American stability is to the world system. America turning into another Mexico would be bad bad news for the world economy.