Money is used as the always of our daily life. People without money are meaningless.Using money, my exchange of consulting services for a new suit is not simultaneous. The transactions take place at different points in time. For this to work, money must hold its value over time. Thus, money also acts as a store of value. I can hold onto money for a few days without having it lose value.
When money is established as a medium of exchange, people get used to calculating value in terms of money. Thus, money becomes a unit of account. Using money as a unit of account breaks down if we are doing cross-country comparisons. A Canadian dollar and a U.S. dollar are not.
Topic: Money vs Barter - page 11. (Read 1887 times)
Money is far better than barter, as the medium of exchange, barter is an old way of exchange goods for goods without engage cash, which come with alot of problem example problem of double coesident of want etc. In this modern days money is the best way to exchange for goods and services.
I will support your stance too because nowadays, everyone is having his/her own needs. So they need money to buy what they want. Barter market was operating when people were not having proper currency system. Now it is not possible for it to function.
good logic
it just same like the description about coin cryptocurrency works
it just same like the description about coin cryptocurrency works
for now it is very rare for this barter system to be done, the possibility that occurs in the event of a barter is when both parties want each other goods and happiness occurs, if ancient, before the money, this barter is used, but for now the money as a tool exchange of all goods, the allocation is very efficient in comparison with the barter system earlier
The growth of human society has been that of evolution. Even this medium of exchange is evolving. Money has evolved from commodity (the barter era), to gold, to paper and now moving to virtual currency. Who knows what next after cryptocurrency!
In every of these eras, it solves an inherent problem. Coincidence in the days of barter and decentralization in the days of paper money.
I think the exchange system is still going on, yes the exchange system is the basis of the economy. There is always a basic but invisible foundation of a building. All shopping is in fact the equation of power we consume with the power we produce.In every of these eras, it solves an inherent problem. Coincidence in the days of barter and decentralization in the days of paper money.
Money is far better than barter, as the medium of exchange, barter is an old way of exchange goods for goods without engage cash, which come with alot of problem example problem of double coesident of want etc. In this modern days money is the best way to exchange for goods and services.
Money is one of the important concepts, This section talks about money from the perspective of microeconomics.when people exchange goods and services without using money, this is called barter. "I'll cook dinner if you'll do the dishes" is an example of barter. Imagine an economy in wich i can sell services as a consultant to banks, but what i want is to buy a new suit. the clothing store that sell suits does not have any use for my services as a banking consultant. i sell consulting services for money, and i buy a suit using money. money serves as a medium of exchange. the bank does not sell suits. how can barter work?
A barter system can work under those circumstances without money being involved.
An agreement could be made for the bank to barter away the cost of 1 suit for consulting services rendered. For example a bank could barter 10 chickens for the cost of your suit as part of your salary. Under a barter system, goods which can be traded, take the place of currency.
I think to gain a clear perspective of this topic, a person should ask how people exchanged goods and services before money or currencies were invented. How prosperous or poor were those societies? In terms of history, there isn't much effort put into illustrating what daily life was like for those who lived under a gold standard or in an era before fractional reserve banking was invented.
Obviously people bought and sold real estate before mortgage loans or fiat currency were created. This idea that it was impossible to buy or sell a house when the gold standard was in effect(which the establishment indoctrinates us into believing), doesn't seem realistic, does it?
We will also need a medium of exchange i.e. money in order to exchange goods and services.
whether this is in the form of cash, btc or credits etc money in some form or other will be needed.
I do not foresee society to revert back to barter trading as it does not function in a large scale.
Unless you foresee a apocalyptic future where humans live in small villages, then barter can function within such small groups.
Other than that, I doubt we will see significant to barter.
whether this is in the form of cash, btc or credits etc money in some form or other will be needed.
I do not foresee society to revert back to barter trading as it does not function in a large scale.
Unless you foresee a apocalyptic future where humans live in small villages, then barter can function within such small groups.
Other than that, I doubt we will see significant to barter.
The growth of human society has been that of evolution. Even this medium of exchange is evolving. Money has evolved from commodity (the barter era), to gold, to paper and now moving to virtual currency. Who knows what next after cryptocurrency!
In every of these eras, it solves an inherent problem. Coincidence in the days of barter and decentralization in the days of paper money.
In every of these eras, it solves an inherent problem. Coincidence in the days of barter and decentralization in the days of paper money.
Barter system is one of the worst systems.
As per money vs barter system in macroeconomics, there are four major things.
As per money vs barter system in macroeconomics, there are four major things.
- Barter system cannot be considered a medium of exchange.
- Lack of double coincidence.
- No store of value.
- Cannot be used for determining the GDP.
There's a vision of the future economy circulating around. Right now it's hard to imagine people going back to barter, as it was almost impossible to price things with that. With barter there are no universal prices and there are no fractions, like with exchanging cows for horses. What are you going to do if one of the horses is thin and not worth a full cow? Cut the cow in half? 
Now, imagine that you're living in a space colony, a ship going to a new world, or even a city of the future where the food is being grown for free by the government and supplied to everyone and people are assigned jobs that they have to perform like performing system checks, doing maintenance. You're doing it for free as a community, to preserve systems that are keeping you alive. All physical work is being done by robots and other automated systems, health services are automated you just get scanned and a computer medicates you, you don't need fiat money, but you still have property. You can produce things like homemade meals that taste better than the free ones, art, you can gamble. In such would barter would again come into play.
Now, imagine that you're living in a space colony, a ship going to a new world, or even a city of the future where the food is being grown for free by the government and supplied to everyone and people are assigned jobs that they have to perform like performing system checks, doing maintenance. You're doing it for free as a community, to preserve systems that are keeping you alive. All physical work is being done by robots and other automated systems, health services are automated you just get scanned and a computer medicates you, you don't need fiat money, but you still have property. You can produce things like homemade meals that taste better than the free ones, art, you can gamble. In such would barter would again come into play.
Money is one of the important concepts, This section talks about money from the perspective of microeconomics.when people exchange goods and services without using money, this is called barter. "I'll cook dinner if you'll do the dishes" is an example of barter. Imagine an economy in wich i can sell services as a consultant to banks, but what i want is to buy a new suit. the clothing store that sell suits does not have any use for my services as a banking consultant. i sell consulting services for money, and i buy a suit using money. money serves as a medium of exchange. the bank does not sell suits. how can barter work?
This is exactly why barter doesn't exist large scale anymore. The economy is far too complex and bartering is far too inefficient as a means of consuming and satisfying wants and needs. Money plays the crucial role of being a medium of exchange and making the economy function more efficiently as buyers and sellers can rely on a centralized medium that is universally considered to be a store of value and universally accepted as payment. Bitcoin's lack of acknowledgement as such is only one of many major weaknesses standing in the way of it being a viable medium of exchange.
Money is one of the important concepts, This section talks about money from the perspective of microeconomics.when people exchange goods and services without using money, this is called barter. "I'll cook dinner if you'll do the dishes" is an example of barter. Imagine an economy in wich i can sell services as a consultant to banks, but what i want is to buy a new suit. the clothing store that sell suits does not have any use for my services as a banking consultant. i sell consulting services for money, and i buy a suit using money. money serves as a medium of exchange. the bank does not sell suits. how can barter work?
This is why we need money what you are describing is the greatest problem with barter, it is called the coincidence of wants, in order for a barter to work both people need to want something from each other and if that is not the case the transaction cannot occur, this is why money was created so no matter what you or someone else is offering you both will have something the other wants a medium of exchange, if you still want to see barter in action watch your favorite sport and wait for the trade season.Explained well. Cool. Just as your name says it.
That will always be the problem. What he really need at the time they want to trade something or an offer.
I need a glass of water but you have a glass of oil. I cannot drink it so again I need to look for someone to trade that oil until I die in thirst.
Money was created to take that out. Using as a middle thing to solve cases like this.
It was a good creation, it was just abused.
Money is one of the important concepts, This section talks about money from the perspective of microeconomics.when people exchange goods and services without using money, this is called barter. "I'll cook dinner if you'll do the dishes" is an example of barter. Imagine an economy in wich i can sell services as a consultant to banks, but what i want is to buy a new suit. the clothing store that sell suits does not have any use for my services as a banking consultant. i sell consulting services for money, and i buy a suit using money. money serves as a medium of exchange. the bank does not sell suits. how can barter work?
This is why we need money what you are describing is the greatest problem with barter, it is called the coincidence of wants, in order for a barter to work both people need to want something from each other and if that is not the case the transaction cannot occur, this is why money was created so no matter what you or someone else is offering you both will have something the other wants a medium of exchange, if you still want to see barter in action watch your favorite sport and wait for the trade season.
Money is one of the important concepts, This section talks about money from the perspective of microeconomics.when people exchange goods and services without using money, this is called barter. "I'll cook dinner if you'll do the dishes" is an example of barter. Imagine an economy in wich i can sell services as a consultant to banks, but what i want is to buy a new suit. the clothing store that sell suits does not have any use for my services as a banking consultant. i sell consulting services for money, and i buy a suit using money. money serves as a medium of exchange. the bank does not sell suits. how can barter work?
Jump to: