Submitted by XSauravX t3_ztz1y9 in explainlikeimfive
MoogTheDuck t1_j1gvb2g wrote
Reply to comment by XSauravX in Eli5 Why did Canada get rid of it's all gold? by XSauravX
You aren't really asking about gold, you're asking about fiat currency. Some people say that the US dollar (or any fiat currency) isn't real, has no intrinsic value, only exists because we say it does... this is not true. Fiat currency is backed by law and the state's monopoly on legal violence. To say that the dollar is useless is basically saying the US economy doesn't exist.
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