What Is Money?

The man who raises cows and bulls has valuable assets, but livestock is difficult to carry in your pocket and not practical for dividing into small denominations. Animals also live for only a few years. The fisherman has lots of fish, but they also die quickly, and not everyone even likes fish.

real vs fake money

Private vs. Government Currency

Gresham’s Law states that in a competition between currency, bad money will win out over good money over time, in other words, the average person will be more likely to use their US Dollars to purchase goods and services over their Goldbacks because the gold will maintain value, while the US Dollar won’t. Shaffer gave his answer to the dilemma of Gresham’s Law.