Many items were used for centuries as a form of money such as gold, silver, shells, beer, tobacco
However, each one of these items had some characteristics that made the less than ideal for exchange in certain circumstances
good money has a number of essential characteristics - and modern currency fulfils them all
Divisibility: to be a valued medium of exchange, currency must be divisible. €50 notes can be exchanged for €10 euro notes or €1 coins.
Acceptability: the currency must be valued and widely accepted by society as a valid way to pay for goods/services.
Durability: the currency must be robust, not easily defaced/destroyed and last for a long period of time.
Scarcity: the supply of the currency should be such that remains desirable and retains its value in the market. Oversupply would decrease its worth.
Uniformity: in order to be a valid measure of value each denomination must be exactly the same e.g. every $50 note must be exactly the same.
Portability: good currency is easy to carry/conceal.
nice post karthi
Why is scarcity essential for money to retain value?
What happens to an economy if money loses its acceptability?
Can digital currencies meet all characteristics of money?
How does inflation affect the function of money as a store of value?
Why is divisibility important for daily transactions?