@annache Intrinsic value is not meaningless because fiat money has no value of itself. Its enforced upon people by govt.
The value is manipulated by the Central banks. The market does not decide its value. Central bank can decrease the value in a mere second by creating 100X or a 1000X an infinitely large amount by the press of a button.
So your first statement is wrong and that the central point of my argument which most people don't understand.
Fiat money itself is Riba. How do you escape that? Central banks manipulate the value so the value decreases every year by 2-3 % AKA negative interest.
I personally consider an increase in value to be riba. But here the banks are decreasing the value of your wealth. How is that not riba?
If I force you to deposit 10kg of gold with me and I give you my own currency called units. I give you 10units. Now I have the authority to print and create as many units as I want.
Next year when you come with 10units to repurchase your gold. I tell you the value of 10units has decreased because I printed 90 more so there are 100units in circulation now.
I only have 10Kg of gold so with your 10units you can only buy 1Kg of gold.
I offer to give you interest - 900% interest so that that you can now have a 100units. with a 100units you can buy the 10Kg of gold.
Is that interest Riba ?
But in reality that doesnt happen. If they printed 90 units the most interest they will offer is probably 70units.
you now have 80units. 10 units of your own and 70units interest.
I am going to now charge you tax on the 70 units you eared. a 50% tax.you now have 35+10=45 units. You can only buy 4.5Kg of gold now.
Thats how Fiat currency works.