This seems a very simple question but it has very dramatic implications. What is money? What determines what is money?
Historically of course the Free Market has determined and used many things as money. Over thousands of years however a few things have been used over and over as money.
Historically things chosen as money have been used due to certain basic characteristics. Generally the characteristics of good money are as follows:
1. Acceptability – Everyone must accept it to purchase goods and services
2. Durability – It should last a long time
3. Portability – Easy to carry around
4. Scarcity – Scarce enough to be valuable, not common such as sand or pebbles on a beach
5. Divisibility – Can be divided into small units
For those of us that put stock in the Bible do you think our current fiat money system constitutes “Just weights and measures”?
Is gold money? My answer is yes but then anything can be used as money so long as the people using it agrees.