money just makes trading easier. like if a guy (jeff) needs a cow, and the guy (kev) that has the cow needs 4 pigs but jeff hasnt got 4 pigs to give him, then jeff gives kev a VOUCHER which represents the same value as 1 cow or 4 pigs. kev gives jeff the cow and takes the voucher. now he can go to the pig man and exchange the voucher for 4 pigs. THEN the pigman can go to jeff and exchange the voucher for 2 months worth of milk from the cow. this is how the world works. In reality money is no longer backed by gold at all. money is backed by.......... nothing. the government of a country declares "money" as Legal Tender. this legal tender only has the value that the government applies to it. anyway who cares how it works. the point is that society obviously works better with money than without. its not like we have had money since the dawn of time.... they tried it without money for many years and they got by. but the introduction of money just made it so much simpler to trade with people. initially, yes, people used valueable metals. but what use is gold now? who wants a block of gold over a suitcase full of money? if you had a block of gold what would you do? you would sell it for a suitcase full of money...
Is it normal to think that money..
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money just makes trading easier. like if a guy (jeff) needs a cow, and the guy (kev) that has the cow needs 4 pigs but jeff hasnt got 4 pigs to give him, then jeff gives kev a VOUCHER which represents the same value as 1 cow or 4 pigs. kev gives jeff the cow and takes the voucher. now he can go to the pig man and exchange the voucher for 4 pigs. THEN the pigman can go to jeff and exchange the voucher for 2 months worth of milk from the cow. this is how the world works. In reality money is no longer backed by gold at all. money is backed by.......... nothing. the government of a country declares "money" as Legal Tender. this legal tender only has the value that the government applies to it. anyway who cares how it works. the point is that society obviously works better with money than without. its not like we have had money since the dawn of time.... they tried it without money for many years and they got by. but the introduction of money just made it so much simpler to trade with people. initially, yes, people used valueable metals. but what use is gold now? who wants a block of gold over a suitcase full of money? if you had a block of gold what would you do? you would sell it for a suitcase full of money...