/biz/ - Business & Finance

>"Fiat currency is an artificial commodity, in a certain sense."
Only in the "wrong" kind of sense. Modern national currencies are totally not commodities. They don't have a consuming demand, and their value is totally not determined by the laws of supply and demand.

>"When we do work or sell something to acquire dollars, we do so only with the belief that its large network effect (including a legal/government network effect) will ensure that we can take these pieces of paper and give them to someone else for something of value."
That is unfortunately a common misconception that is spread by cryptocurrency promoters, to mislead their victims into thinking that the value of the coins is as well-founded as that of dollars and euros.

That is totally wrong. A national currency has a stable value only because, and as long as, its central bank is willing and able to stabilize its value, through constant intervention in its circulating supply. Someone who accepts a dollar bill trusts that it will retain its value because he trusts that the Fed will do that job -- even if he does not know what the Fed is and what it does.