Monkeytrots,
I appreciate your point -- but it is questionable, at best. *NO* currency has "instinsic" value, that I know of. You might make a case for silver, or copper, since it can have utility. But gold has little to no actual utility: it has great rarity, however. And so does bitcoin.
Now oil has great utiility, but few seriously consider it as tradeable store of value: i.e., money.
1. Fungibility
Fungibility is the unique property of fiat money itself. It refers to a unit of currency’s ability to be exchanged for an equal amount of another unit of currency. It allows money to be divided and transferred without losing value.
2. Durability
Durability is another crucial property of money. This refers to the ability of money to survive through time and various forms of abuse or wear and tear without losing value. Coins, paper, and digital money must stay the same to keep their weight. That way, they will be worth the same amount over time.
This ensures that people can trust that the currency they pay to have today will still be valuable tomorrow. Durable money doesn’t require frequent replacement or repair, making it more cost-effective and easier to track.
3. Divisibility
Divisibility is an essential feature of money, as it allows us to divide our currency into smaller units to facilitates transactions more efficiently. By splitting a single unit of commodity money into smaller parts, we can buy goods and services that aren’t worth the team’s total value. This makes it easier to buy things without needing a lot of money.
4. Portability
Portability is a necessary feature for money to function correctly. Money must be easily transported and stored for people to use in other transactions. Physical money must be transported from place to place, while digital currencies can be sent anywhere with an internet connection. The portability of funds allows us to transfer wealth quickly and easily without worrying about the distance between us.
How easy is it to transport and store money?
The portability of money makes it easy to transport and store. We use cash by carrying it in wallets or purses. Digital money is stored in an account, digital wallet, or safe place. Money’s portability also helps facilitate global trade, as money can be sent to distant locations in seconds.
5. Acceptability
Acceptability is a significant property of money, as it refers to how widely accepted each form of currency is. Different countries and cultures may value various forms of money, so it’s essential that the cash you hold can be easily converted into something that is widely accepted. This method will help ensure your money maintains its value, even in a different country.
6. Limited supply
A limited currency supply in circulation is also an essential property of money. There is a limited amount of money in the world, so people must want more money supply than there is to keep its value. When more people need or use money, the amount of money available decreases. This can make prices go up. We need to take care of our money and use it carefully. Having a certain amount of money also helps us keep it valuable.
7. Uniformity
Uniformity is another property of money, and it refers to how all coins and bills look alike so that they are easily recognized as legal tender. This helps to simplify and facilitate transactions and makes it easier for merchants to accept money, for example, as they can tell quickly if a bill or coin is legitimate.
Uniformity also prevents counterfeiting, ensuring that all bills and coins look the same and are easily identifiable. Uniformity helps people trust in their currency by showing that it’s recognized and accepted by their government.
I've been debating and contemplating the definition and function of "money" since the early 2000s, at least. And I've read pretty widely Austrian Economics books and arguments.
At the end of the day, ability to use it on the street , for ordinary needs, is probably the #1 characteristic. And fiat money -- truely used toilet paper -- has served remarkably well as money for a long time. Lots of weird things have served as money for an unreasonably long period of time. "Faith" seems to be the #1 attribute with #2 Governemnt FORCE being a runner up.
| 