Actually, the real "intrinsic value" of the dollar is the value that the bearer places on not being fined or imprisoned for violating legal tender laws. I would argue that this probably exceeds the face value of just about every denomination of bank note printed. It may not be compatiable with a Libertarian's view of the world, but that doesn't make it any less real to the person holding currency than the value of some shiny golden coin.
This passage is so confused and self-contradictory, which should be obvious to any person following this who thinks for themselves. If a thing has "real intrinsic value" there is no need to pass laws mandating that it be accepted in exchange. Barter is perfectly legal in any case. You just don't seem to understand what you're talking about, or at least, what I'm talking about, which amounts to the same thing -- it doesn't appear there's much value in continuing the conversation.
Libertarianism is a *conclusion*, not a premise.
I'm afraid I have to give up on you. Good luck.