[ndm000]

I agree that taxation is part of money’s value, and there are also other factors. If money is backed by a commodity (i.e. gold) then part of its value comes from the value of the commodity.

For fiat currencies where new money is mostly created as debt, the common refrain is that its value is based on common trust. I think it’s more than that. Debt is an obligation between two entities regarding future outcomes - namely, the repayment of the loan plus interest. When looked at this way the value of money comes from humanities ability to affect future outcomes. If I take out a mortgage, the bank trusts me to repay based on evidence I’ve demonstrated, and I trust the bank due to the bank’s reputation, the laws that govern banking, etc.

I am not an economist and wouldn’t be surprised if these concepts are already in some theory I’m not aware of. I do think that the sentiment that money created out of nothing is not really correct - rather it’s money created out of expected future value.