Comment Yup. Money is a meme (Score 1) 59
whose value is supported by the "bubble" of sustained collective belief in its value.
Sometimes that belief is related to belief in the value and stability of a particular economy that uses that currency for accounting of its transactions.
Oh and with the amount of lending (of non-existent money), a lot of the belief amounts the belief that most loans will be paid back with future plausible earnings from future activity or future exploited resources.
Sometimes, as in the most popular cryptocurrencies, the belief is based on a theory that a good chunk of the world economy's transactions will transition to being accounted for in the cryptocurrency (e.g. ETH? or a multi-fiat-currency-stabilized stablecoin perhaps?), or based on a theory that the mathematically guaranteed scarcity (of bitcoin) will result in it being accepted as "digital gold" store of value. This is actually no more outlandish a belief than that the shininess and scarcity of gold give it inherent value.
Sometimes that belief is related to belief in the value and stability of a particular economy that uses that currency for accounting of its transactions.
Oh and with the amount of lending (of non-existent money), a lot of the belief amounts the belief that most loans will be paid back with future plausible earnings from future activity or future exploited resources.
Sometimes, as in the most popular cryptocurrencies, the belief is based on a theory that a good chunk of the world economy's transactions will transition to being accounted for in the cryptocurrency (e.g. ETH? or a multi-fiat-currency-stabilized stablecoin perhaps?), or based on a theory that the mathematically guaranteed scarcity (of bitcoin) will result in it being accepted as "digital gold" store of value. This is actually no more outlandish a belief than that the shininess and scarcity of gold give it inherent value.