This is some paper.
This is a token issued by the state. .
It has no value in itself, just some value symbols, that is, things that represent value, and its essence is just some paper. .
When many people take out a lot of paper money and enter circulation, paper money will depreciate. Many people will naturally change their money into hard currency, such as gold and silver. The price of hard currency will skyrocket. You can buy100g of gold before, and then you may only buy10g. . . . When people found that paper money began to depreciate, they began to hoard valuable things, and the market price would soar.
Then the market will be chaotic and the financial order will collapse. The state power is facing a crisis. Businessmen who hoard goods will take the opportunity to make a fortune, which will increase the gap between the rich and the poor, the gap between social classes, and then lead to crimes.
It is impossible for everyone to withdraw money, but when the investment market is good, a large number of savings customers will withdraw their deposits from banks and enter circulation. Therefore, the currency in circulation will increase, leading to the corresponding shortage of purchasable goods, rising prices and devaluation of paper money. In order to avoid this situation, the actions taken by the state are usually to raise the interest rate of bank deposits, raise the interest rate of bank loans, and issue government bonds to attract deposits.
The basis of these phenomena is the so-called worthless money, which does not include the value printed on paper. The state ensures the symbolic status of paper money through state machinery and legal provisions. Once social unrest and war continue, the state machine is facing disintegration and collapse, and paper money is a piece of waste paper.
Therefore, to measure whether a country is strong or not and whether a government can stand firm, the stability and social recognition of the tokens it issues are one of the criteria.
When the government is in turmoil, there will be a phenomenon of bartering or buying and selling things directly with gold, silver and copper coins, which is a manifestation of people's distrust of the government.