Board Thread:Micronations/@comment-5942598-20131214120720/@comment-5942519-20131220094817

Yes But you could print another 10, making 40 star dollars. That would make the "value" of your currency drop to $1.33. Or delete a five, and you will have $25 star dollars, making your currency worth $2 USD.

Anyway, I'm quite sure that's not how you figure out the value of the currency. Any micronation can alter the value of their currency anytime, as I have just proven. Yes, your currency has value to you, but to be quite blunt about it don't expect to see the Star Dollar being traded tomorrow on Wall Street.

So technically it does have "value" as you define it - being worth more because the exchange rate between your currency and the USD favours your currency. But the USD has more value because it is the most traded currency in the world.

I hope this solves your confusion. Even if you have 1000 USD of silver backing your currency, your currency would still have little value compared to the US dollar. Also, keep in mind you are valuing your silver in US dollars...