Stuff You Should Know SYSK Selects: How Currency Works
Dec 14, 2019
Discover the whimsical history of currency, from cows and cacao to modern electronic money. Dive into quirky anecdotes about using unexpected items like Tide detergent as currency. Learn how the gold standard shaped financial systems and explore the fascinating journey of cowrie shells. The discussion ranges from the evolution of money to the challenges of inflation, all spiced with humor and nostalgia. Plus, enjoy a heartfelt tribute to a loyal fan that adds a personal touch to the exploration of this essential topic.
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Tide as Currency
- Tide detergent has become a black market currency for drug purchases.
- This highlights the idea that anything can be currency if agreed upon as a medium of exchange.
Currency's Problem-Solving Nature
- Currency solves the problem of bartering by enabling precise exchange rates and change.
- This eliminates the need for perfect matches in bartering and makes trade more equitable.
Aztec Cacao Beans
- The Aztecs used cacao beans as currency due to their inherent value as chocolate.
- This demonstrates how commodity currency can be tied to cultural significance and practical use.