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:
• persistence across time
• immunity to decay
• stability of form
• maintenance of integrity
Divisibility
money must be separable into smaller units:
• consistent value ratio between units
• practicality in small transactions
• precision in measurement
• scalability across transaction sizes
Portability
money must be easily transported:
• ease of physical movement
• efficiency in transfer
• minimal transport cost
• convenience in carrying
Scarcity
money must maintain limited supply:
• resistance to inflation
• controlled supply growth
• natural or enforced limits
• protection against debasement
Fungibility
money must be mutually interchangeable:
• identical value per unit
• no meaningful differentiation
• universal acceptance
• perfect substitutability
Verifiability
money must be easily authenticated:
• resistance to counterfeiting
• clear identification
• reliable verification
• immediate recognition
Acceptability
money must be widely recognized and accepted:
• 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.