1.6.2.3 The nature of money. From where does money derive its value? One answer: it is an arbitrary yet consistent fixed-point in valuing-space, emergently useful for coordination. This—in contrast to other answers such as that money’s value derives from the state—reveals that something like bitcoin should be possible.
You could also go back a step: both “the state” and “social valuation for coordination purposes” reveal that fiat currency (even unbacked by any material goods) could work, in contrast to the view that the currency itself must be precious.
You could also go back a step: both “the state” and “social valuation for coordination purposes” reveal that fiat currency (even unbacked by any material goods) could work, in contrast to the view that the currency itself must be precious.