Human civilization flourished in times and places where sound money was widely adopted, while unsound money all too frequently coincided with civilizational decline and societal collapse  — Saifedean Ammous.

Economic value is the benefit provided by a product or service.

It is subjective and circumstantial because it depends on each subject's appreciation for a particular service in a determined situation. "To each his own"

 

When the availability of economic value increases, the standard of living improves. 

Money is the tool that socially (1) represents, (2) stores, (3) transfers, and (4) measures economic value

The characteristics that provide a good with the ability to fulfill those functions with security are called monetary properties

Money spontaneously emerges through voluntary adoption and evolves through 4 stages:

1) Collectible / Whimsy

Function: Display of economic value

Monetary property: 

   - easily verifiable scarcity: the ability to represent the necessary cost/work/effort to obtain it. 

2) Store of Value and Medium of Wealth Transfer.

Additional function: Preservation of economic value/Transportation of economic value across time.

Additional monetary properties

   - storability & durability: the ability to be protected from theft or loss.

   - portability: the ability to be transferred. 

3) Medium of Exchange.

Additional function: Transportation of economic value between people. 

Additional monetary properties

   - fungibility: ability for different instances of a good to be treated as equivalent. 

   - divisibility

   - saleability or social adoption: the ability to be exchanged for different goods.

4) Standard of Value.

Additional function: Unit of account: it measures economic value. 

Additional monetary property

   - relatively smooth distribution or decentralisation of units: provides stability of value.   

A secure money facilitates social coordination.

  

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Terms:

Medium of exchange: the asset that settles a transaction. "What" a transaction is denominated in. 

Means of payment: the method used to implement a transaction. "How" a transaction is manifested. E.g. credit card payments.

Currency: a generally accepted medium of exchange.