Paper money has as close to zero intrinsic value as is possible - no food value, takes a lot to wallpaper a room, very little heat when burned, very little insulation provided when crumpled or shredded...
Yet people accept them anyway. Why? Because they have faith that someone else desires them and will exchange goods or services for them.
It took a long time for people to start trusting and accepting paper money because of the reasons listed. The best, possibly only way to destroy faith in paper money is to stop accepting it when it is offered as payment (even though it says right on it that you have to accept it) with an explanation of why you are refusing to accept it.
One question for the author: Is the 'uncounterfeitability' of FRNs and bitcoins an intrinsic value?
Daily Paul cured my abibliophobia.