Properties of Money

money requires specific properties to function effectively as a store of value, medium of exchange, and unit of account. these properties are not arbitrary - they emerge from the fundamental requirements of human coordination and value transfer.

Durability

money must maintain its properties across time:

• resistance to physical degradation
• persistence across time
• immunity to decay
• stability of form
• maintenance of integrity

Divisibility

money must be separable into smaller units:

• subdivision without loss of properties
• consistent value ratio between units
• practicality in small transactions
• precision in measurement
• scalability across transaction sizes

Portability

money must be easily transported:

• high value-to-weight ratio
• ease of physical movement
• efficiency in transfer
• minimal transport cost
• convenience in carrying

Scarcity

money must maintain limited supply:

• difficulty of production
• resistance to inflation
• controlled supply growth
• natural or enforced limits
• protection against debasement

Fungibility

money must be mutually interchangeable:

• uniformity between units
• identical value per unit
• no meaningful differentiation
• universal acceptance
• perfect substitutability

Verifiability

money must be easily authenticated:

• simple authenticity checks
• resistance to counterfeiting
• clear identification
• reliable verification
• immediate recognition

Acceptability

money must be widely recognized and accepted:

• universal recognition
• cultural adoption
• merchant acceptance
• network effect
• social trust

Perfect Integration

these properties cannot exist in isolation - they must work together in perfect harmony. the failure of any single property compromises the entire system.

true money achieves the ideal balance of all these properties simultaneously, creating a reliable system for storing and transferring value across time and space. each property reinforces the others, creating a robust and effective monetary system.