The Divisibility of Money

Paper Summary:

This paper examines how money is very important to civilization and how, without it, transactions vital to survival would not be possible, as human generosity cannot supply food, shelter and other essentials to the entire planet. In particular, it looks at how among its properties, divisibility has been shown to be the most important quality of money. This paper explores this theory, both in terms of paper and digital money.

From the Paper:

"Even here, the paper money system, with bills denoting dollar amounts, such as one, five, ten, twenty, and so on, as well as the coins denoting amounts under one dollar, needs to be divisible. An object that is easy to handle, durable, and of high intrinsic value, such as the aforementioned diamond, would not work unless it were divisible. This is because the values of goods and services rarely amount to a 'round number.' Without the concept of 'change' or divisibility, owing to the approximation of prices, either the vendor or buyer would be greatly cheated."

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