Money. Money is what we all want. Money is what we all need. Money decides how we live. Money decides what food we eat.
But, in our busy lives, have we ever thought about what money is actually?
The 10 dollar bill that you have in your pocket, the gold ring that you’re wearing in your hand, or the plastic card in your wallet?
“All money is a matter of belief” — Adam Smith
While money seems so common today, humanity did not start with money. As we all know, we started with barter. People used to take what they want by giving what the other person wants. In basic economic theory, we call this “double-coincidence of wants.“
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Double Coincidence of wants
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But soon, people figured out that the system is flawed. They would not always find someone who has what they want and is also willing to take what they have. Plus, there were other problems like portability and divisibility — a cow is not very portable and cannot be divided into smaller pieces to buy anything.
