What explains why fat money has no value in itself?

Fat money, or Fiat currency, has no intrinsic value because it is not backed by a physical commodity like gold or silver. Its value is derived from the trust and confidence that people place in the issuing government and the stability of the economy. Essentially, it functions as a medium of exchange because society collectively agrees to accept it for transactions, rather than having inherent worth. Thus, its value is largely based on perception and legal endorsement rather than tangible assets.