“All money is a matter of belief”, according to Adam Smith, author of The Wealth of Nations.

The value that is assigned to money is subjective and is essentially a matter of trust. There isn’t a fixed value for money except the belief that it is useful for the exchange of goods and services.

If that faith or trust erodes, then its value can drop sharply and lead to crises in the economy or society.

Money is an idea, and it’s built on trust. Bitcoin and the Dollar are an idea.

Source: The Socratic Method: Money.