21 The Divisibility Of Money

21 The Divisibility Of Money

This discusses the ability for money to be broken into smaller units so that it can be used to exchange a refined amount of money.
Money Type Score (5) Why
Debt 5 As a debt is essentially information, then it can be infinitely divided.
Commodities /Items 1 With actual things, like rice, dates, cattle, beads, each item varies in its ability to be divided, but there is generally the smallest unit that dividing it further would break its ability to hold value. So its very limited in its ability to get smaller and smaller units
Gold /Silver 3 Gold and Silver can, in theory, be divided down to the atom, but in practice one wouldn’t or couldn’t. They are both a lot more easier to divide than commodities, but because its hard metal, the process can be labour intensive and cost money to do so. That cost takes away from it some value.
Fiat 4 Fiat money is just what is written on the paper, and therefore can be divided, upon being made, almost an infinite amount. However, once it has been issued, it can’t be divided again. You cannot tear a £10 note in halve and get 2 £5 notes.
Bitcoin 5 Bitcoin, just like a debt, is information, and it can be divided to 8 decimal places. That means you can 0.00000001BTC, which is called a satoshi. On the lightning network, you can even divide that further down.


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