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You do not accept US dollars because of their physical value (it is just a piece of paper after all), but merely because the government forces you to accept it.Another important issue is the transaction fees: Whenever the bank issues a transactivpn jyu mac onteon from Alice to Bob, then Alice pays some amount of money to the bank as a commission for its serviRecent history: A Centralized Commodity-Backed Money This is one step toward the money system that we know today....
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However, in a Fiat money, these notes and coins do not represent any actual material like gold or silver.sed throughout history, we can observe that at the beginning of trade people used a decentralized system, later they switched to a centralized one, and nowadays the cryptographic community is making enormous efforts to switch it back to a decentralized form, with a more modern twist.Recent history: A Centralized Commodity-Backed Money This is one step toward the money system that we know today....
The above also clarifies the reason that this type of money is called “Fiat”, the word fiat came from Latin and means “let it be done” or “it shall be” used in a sense of an order or decree.This way, the government made the US dollars the most fungible objects these days (it became more useful than a brick of goldvpn jyu mac onte).Future: Decentralized Blockchain It is easier to understand what a blockchain is and how it works by an analogy to a bank account....
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