How Can I Create a Currency and Make It Have Value?

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Question: 

So I wanna make a currency/small economy in my school and I need to figure out how to make it have value, without it being made from something with preexisting value (such as precious metals being used as a currency). I know how to distribute the money but I don't know how to create a value for it.

Answer: 

I know you are asking this out of intellectual curiosity and for fun; in the U.S., it is illegal to create any sort of currency. Having said that, you raise an important point. It is easy to "create money" by printing some pieces of paper and, say, putting the flying spaghetti monster's picture on them. That makes it look legit, for sure. But, there is not much anyone can do to make people want to "hold" or use that currency. They either do or they don't. Remember, you hold onto a dollar bill because you expect to run into someone who will take your dollar bill and give you something real (such as a bag of chips) in exchange. With your currency, you can try to coax your friends to accept your currency, and if a good mass of them do, others may follow and it could take off. So, I suggest you find some friends who are key influencers in your school and ask them to promote your currency to their friends via Snapchat or Insta. Who knows, it may catch on. 

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Last updated on November 23, 2021