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RE: What is Money? Part 1: Real vs. Financial Assets
I like the way you're thinking, but this isn't correct. Fiat money has value because government demands it in taxes.
I've actually written an article (and done a YT video) precisely on this subject. Me and a friend of mine believe the value of BTC can be explains by comparing it to how taxes function. You can check it out here: https://steemit.com/bitcoin/@volsci/taxes-explain-the-value-of-bitcoin-what
I totally didn't understand "fiat has value because of taxes" when you first commented this. But then I heard this sociology professor tell the actual historical story of money and coins, and it all made sense! I had been believing the economist's story of money - that it developed because of a need for a common unit of exchange - which isn't actually historically accurate and leads to a real misunderstanding.
It reminded me of this convo and I had to come comment. I think it's a very important misconception to correct if you're going to talk about how fiat has value bc of taxes.