The Currency Analytics
By Dan Saada
Charles Hoskinson on Coinage, Fungibility
Charles Hoskinson clarified foundational principles making money and then spoke about the level 2 stuff. He spoke about the quality parameters ruling money.
Sydney Ifergan, the crypto expert, tweeted: "Deconstructing the different facets of money with Charles Hoskinson is worth knowing to truly understand the importance of the…
The transportability of money is super important and special when we talk about large transactions across borders.
Durability is another. Good money should be somewhat durable. For example, let us see paper money, and that paper money is poorly printed over time it tends to wear down…
So, we would like the money to be durable. So, this is why most of the monetary systems started with coinage, building things from metal as metal is so durable.
There is also things like fungibility. This is probably one of those terms that you have never heard before. Or you cannot remember the definition of a pretty simple idea.
So, if I have a coin and you have a coin, and they both say a dollar on them, you don't particularly care or hold one on higher esteem. This is not true for all things.
Because you don't want the money itself to get in the way of commerce the means of exchange, you want each unit to be identical from the avenues.
So, we have the ability to transport, the durability of the asset, the fungibility, and can you divide it. So, divisibility is a very important property as well.
So, divisibility is one of those things, can we break it into sufficiently small pieces. So that we get very specific about the pricing of items.
There has been many discussion throughout the years, for example, getting into the penny, which is the fundamental unit of account.
So, these are some of the properties which go into the quality of money: the ability to transport, the durability, the fungibility, the visibility of it.
You can talk about concepts like credit and debt. We’re all interconnected with each other and ideas about supply.