What is money?

Money is anything that is generally accepted as payment for goods and services and repayment of debts.

The main uses of money are:

1. as a medium of exchange; 2. as a unit of account; and 3. as a store of value

Everyone Might Feel Confused Ahsan

we would experience a lot of things that are horrible even to think of, especially in food, clothes, or shelter. Money is a kind of standard that people make for a better life, so if it were not for money, people would lose the standard and feel confused.

The whole financial system around the world couldn't exist anymore. There would be no banks. Many people would find they were unemployed.

Plenty of Unexpected and Terrible Things Would Occur Ahsan

It Might Bring Peace and Charm to the World

Ahsan

If we look on the bright side, the disappearance of all money might bring peace and charm to the world. Maybe there would be less war and fighting over money and power. Most people would have to be producers of goods instead of just being consumers as has happened in the past. Life wouldn't be as complicated as it is today in terms of money.

There Would Be a Big Mohsin Crisis

Money is very important in the world; no country can exist without it. If it disappeared, there would be big consequences, and this would be a good opportunity to think about the consistencies of each country. There would be no exports and imports and no border between countries.

Mohsin

Mohsin

1. Matrix Problem, leading to high cost of transaction The barter system essentially needs a matrix where you have to maintain exchange rate for each pair of products. Now, think what will happen if we extend this to one thousand products? 2. Multiple grades. Most commodities have multiple grades (tomatoes can be rotten, ripe, or green, and can be sourced from multiple origins, can be organic etc). Signing each commodity with the particular grade is very expensive. 3. Verification of authenticity. Currency issuing authorities have made it relatively easy to detect counterfeit currency. But, imagine you are exchanging milk for tomatoes. How do you know that the tomatoes all belong to quality x and the counterparty knows that the milk is not alternated?Mohsin

Wasim
4. Things get spoiled, and hence savings become impossible. A lot of times, you don't want to exchange a product for another product. You just want a promise to exchange for the product at a future time. 5. Banks will die. Since savings are impossible and it is not practical to store anything other than currency

Wasim

Conclusion

Money is NOT some special invented item, it is merely an abstract of value that humans have put into a reality. alternative of money does not exist yet. The barter system was used in the ancient times but in 21st century it wont work out.