Matúš Kočalka, Chapter 10, Question 5

Mr. Wheelan describes why people believe that money worth something: “And people peddling real things will accept dollars because they are confident that other people peddling other real things will accept them.”                                                                                                                                    When I stop and think about it, I still cannot really believe that the entire humankind is partially based on our imagination. The world works, because we set the strict rules, and one of these rules is that money actually worth something. We are so confident in our belief that the money have a certain price, but in the reality, it´s just a piece of paper. When I realize that money aren´t backed up by anything else (e.g. gold, silver), than just by our faith, it´s making me confused – how can we be so certain, that this idea will work also in future? That there won´t be some sudden crash, which will destroy all of our worldwide markets?                                                                                                  Our entire world is based on a piece of paper.