What is the value of money, and why?
Tim Worstall, Journalist (2004-present)
Answered just now
If people will accept it as money then it is money. If they won’t then it isn’t.
That all sounds a bit simple, possibly even tautological, but it is the truth of it. Everything else that is said about money – government issuance, that it can be used to pay taxes, that’s it’s useful in transactions, that it maintains value and so on, they’re all details.
Humans have used butter, copper sheets, cowrie shells, pieces of paper, gold, silver, government promises and all sorts of other things as money. The one unifying factor is that other people in the same society – and often beyond it – regarded the things being used as money, that this thing, whatever it was, had value. So, it did have value. QED.