Voltaire: Intrinsic Value of Money
on Wednesday, August 11, 2010Voltaire Money Quote on the value of paper currency – which the French philosopher believed was worthless – back in the 1700’s. Paper money began in China in 960 AD and is still with us today, worthless or not.
“Paper money eventually returns to its intrinsic value – zero” — Voltaire
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In this quote, philosopher Voltaire seems to be making an observation about the nature of fiat currency. By stating that paper money will eventually return to an “intrinsic value” of “zero”, Voltaire implies that money whose value is not backed by a tangible commodity like gold will be valueless if faith in the currency is lost.
The quote suggests that fiat currencies derive their worth solely from social agreement and acceptance rather than any inherent worth of the physical notes and coins themselves.
Overall, Voltaire appears to be acknowledging that while paper money may function well as a medium of exchange, its value is ultimately dependent on the credit of the issuing authority and sentiment of the populace. If that trust is seriously undermined, the money could face devaluation or collapse over time.
Birthday: November 21, 1694 – Death May 30, 1778
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