A currency is both a medium of trade and a store of value. The first currencies consisted of specie: gold and silver, which resist corrosion. Within a few centuries, base metal token coins, whose metal was worth less than the face value circulated. This was only possible because they were redeemable in specie at face value. In 18th Century England, the first modern paper currencies circulated in the from of gold receipts payable to the bearer. Eventually, governments monopolized the issuance of paper money, still redeemable in specie. (Early fiat currencies were usually issued in desperation and depreciated out of use.) Eventually, the specie standards failed and all currencies became fiat: legal tender by law.

All of these have in common some sort of backing: a commodity or a law. The reason fiat currency works in many countries is that independent central banks have learned the lessons of past excessive, inflationary (I prefer depreciative) monetary episodes.

The problem with crypto is that it lacks any backing. Market signals like price level and interest rates don't exist. The idea of creating value through contracts is interesting. However, I fear that it will not produce the price stability that a successful cryptocurrency needs.

BTW, it is not legitimate to speak of intrinsic value in this context. Price, that is, market value can be observed. However, the value of a good or service to an individual can only be determined in combination with all other goods and service and one's budget constraint in the context a utility function. Even then, only the margins can be studied in the abstract.

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