WHAT ARE THE MONEY CHARACTERISTICS?

Durability

WHAT ARE THE MONEY CHARACTERISTICS?

Money needs to be durable. Have the ability to maintain their value. Do not change over time, such as gold and silver.

WHAT ARE THE MONEY CHARACTERISTICS?

WHAT ARE THE MONEY CHARACTERISTICS?

Verification of authenticity

WHAT ARE THE MONEY CHARACTERISTICS?

WHAT ARE THE MONEY CHARACTERISTICS?

Banknotes and gold are quite easy to verify as to their authenticity. However, despite the special features on the surface of the paper to prevent counterfeiting, there are problems. There is always the risk of fraudulent counterfeiting. There are also imitations in gold. Special procedures are followed by qualified people to verify its authenticity.

Trade-ability

A currency should be able to be sold at any time, without losing its value in every transaction. This is only achieved when it is widely accepted as an asset and there is sufficient liquidity.α.

Divisibility

Ένα νόμισμα είναι διαιρετό (divisable), δηλαδή µπορεί να αποτυπώνεται στο ίδιο υλικό με διαφορετική αξία.

So it remains to be seen whether the cryptocurrencies with their particular characteristics have or meet these criteria.

Source:

• Mankiw, N.G. and Ball, L.M. (2013) Η Μακροοικονομική και το χρηματοπιστωτικό σύστημα, Worth Publishers