But in that argument, there is no intrinsic value of the dollar bills in your pocket. It is only our faith in the value that gives them value.
Even more precisely...
To gov’t. the intrinsic value is when gov’t. owns the system in which things verifiably mine are made things verifiably yours then to the gov’t. can verifiably cancel (and verifiably record) any transaction it desires. This is not about the intrinsic value to obtain a loaf of bread. It is about the intrinsic value to give permission to buy a loaf of bread.
You’re right.