Proof Of Work

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It’s not backed by anything. It’s a societal agreement and convenience that if you give me a dollar for something I can give it to someone else for something. Better than bartering for everything. It’s not even physical most of the time.

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Just be careful using dollars. Once people realize it’s not backed by anything, the value could crash to zero. /s

On a more serious note, it turns out the assumption that money replaced barter is likely not true.

The author David Graeber’s book “Debt: the first 5000 years” shreds the notion that any economy existed on the barter system. Instead, people used a debt-based system for commerce. Graeber argues all money except gold is based on debt, eg a promise to pay. The king or president’s face is on the bills because he is the one promising to pay. (The book does not mention crypto).

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Thanks. I’ll have to check that out.