Yesterday we talked about a strange case of someone getting de-banked… and I asked the question – what’s going on here? Is this a trend?
I suppose time will tell. But I can’t help but think that this is a signal we need to be paying attention to. And it’s a good opportunity to tune in to what’s happening in the world of money and finance.
So today, let’s talk about the nature of money.
Now, I know that may sound a little strange. We all use money every day. We’re familiar with it. But have we really thought about it?
Where does money come from? Why is it valuable?
The short answer is that money is a unit of account that serves as a medium of exchange. But this is an incomplete view.
In order to be viable over long periods of time, money must contain several definitive characteristics. Money must be:
- Portable
- Divisible
- Fungible
- Durable
Let’s examine each of these characteristics in more detail.
Continue reading “The Nature of Money”