The False Value of Paper Money?

Can anyone explained about this subject...example or details would be great...The False Value of Paper Money?
The Value of Paper Money is only as good as the promise of the government of it's value.





It is truly worthless it is paper with ink on it.


There is no gold or anything of any value connected to it.The False Value of Paper Money?
If you think there is anything false about its value, you do not understand the nature of value. Paper money has value for exactly the same reason that good, silver, or diamonds have value. Nothing has any ';inherent'; value. Everything has value because and only because there is human demand for it and a constrained supply of it.





The value of fiat currency is just as legitimate as the value of gold ... the only difference is currency is vastly more useful and tradeable and gold is pretty useless to most people.
Gold has value b/c you can use it for decoration or in electronics, but also because if you have gold, you can easily trade it for goods that you need, i.e. it is an accepted means of payment.





Paper money has value only b/c other people accept it as payment.


There is a risk that money will lose value if most people do not want it anymore (this is called hyperinflation).


But using gold is not an option since the amount of business transactions is a lot larger than all the gold in the world.
the great thing about fiat money, is that when the value of precious metals change it doesn't jerk your whole economy around like a kite in a thunderstorm.





And really, what would be the benefit of tying it to gold? If the economy collapsed, and you were able to get gold for your dollars, what would you do with it, eat it? Learn how to be a goldsmith and make jewelry out of it? Or just discover that it's basically a yellow rock, no more or less useful than any other yellow rock.