What is NOT Money? – Seun Ogunmola – Medium
So, we continue on this Money series.
A brief recap is not a bad idea however.
We have established that Money is ANYTHING that is ACCEPTED by a two or more parties as a MEDIUM of EXCHANGE for good, services, ideas and any other thing each party considers valuable.
That is the most important thing to know about Money.
However, to have a balanced view of things, we need to consider what Money is not or what is not Money.
So straight to the point, what is not Money?
We had a clue of the answer in my previous article.
Anything You have that is not ACCEPTABLE as a means or medium of exchange by the party you are transacting with is not Money. period!
For the sake of understanding, let us make further clarifications;
Have You gone to buy something before and You didn’t have cash on You yet your bank account balance had like 6 zeros? and the other party doesnt accept transfers or POS?
I have been in such situations a number of times.
Did You have money in your bank account? Yes.. Were You able to make the trans-action? most likely No!
At that point in time, what You had wasnt money.
Nigeria used to have coins and some paper money back in the days before they were changed, if at that time I saved up 10,000 naira in coins or in the old Naira notes and I forgot about them only for me to stumble on them while cleaning the family house, I am 10,000 naira richer am I not? Of course I am, but can I take that 10,000 in coins or in the old “better life” to one of these supermarkets around and buy stuff?, well, I might even end up having to pay for bail at the police station.
Those example above are basic examples to drive home the point.
In one sentence, ANYTHING that is not ACCEPTABLE as a MEANS of EXCHANGE by the PARTY You are trans-acting with is not Money.
That was one of the flaws of barter and other primitive systems, say You have Rice and I have Rice, but You need Oil from me and I don’t need Rice, there wont be any transaction.
Is your Rice valuable? Yes! but can You use it for this particular transaction? No!.
As we proceed in the series, it is important to understand what the other party You are performing exchange with finds valuable and then find ways of offering it to them in exchange for whatever You want.
In case You need more perspective on this particular topic, I found some articles online that can come in handy,
In the next article, we will consider how Money is acquired.
See You in the next article.