Note from the CEO: Here is a very interesting article. For transparency, we at FintekNews have been thinking of ways to create a currency as an incentive for clients (like you care, and that’s why we are still thinking). Anyway, a good read on what makes “value”. I’ll go one more on the author; Pullman dollars. I’m not that old, but look those up. Hello bitcoin.
“What makes a dollar a dollar? I am completely fascinated by the concept of money. The evolution occurring in money today is absolutely intriguing to me. The Yap in the Eastern Pacific used large limestone as currency. Instead of moving handheld currency, the stone was a public ledger that was used to show who owned what value. A riveting story to read up on if you ever get the chance. It had me doing a ton of research as to what makes money have any value. I even thought that dollars today are backed by gold (it hasn’t for the last 46 years) until I started reading on it. Value is dependent on two factors, supply or scarcity and demand or how desirable is it.
We use the dollar today instead of gold because of fluidity and a common value. We can go almost anywhere and get something in exchange for a dollar. The value of that dollar is generally accepted as fact only because IT IS GENERALLY ACCEPTED. If we were dealing with a culture that does not know of a dollar, they would laugh at you for attempting to exchange those pieces of paper for work or goods. Just as you would laugh at the Yap for offering a piece of their stone for your computer.
Matter of fact, the dollar even has a different value to different people using the dollar. I for one value $200 more than I would value a 65” 4K Ultra HD television. Someone else may feel that it is a great buy. If I purchase it, I am only doing so for resale value. To them, they would purchase it to use it. The value of anything (including TVs and Dollars) is dependent on its scarcity and how desirable it is.”