Compared to the era of a self-sufficient barter economy, everyone’s happiness is greater in the exchange economy, where each person divides their labor into what they do best and exchanges what they produce. This is because the division of labor is more efficient than self-sufficiency in productivity and can further reduce production costs. At this point, a means of exchange agreed upon by society is required, which is called money (currency). In other words, in the exchange economy, specialists who excel in one field are more advantageous for survival than ordinary people. An all-round player is more likely to face starvation. Therefore, a generalist is only advantageous for survival when they can organically integrate their diverse abilities in a specific field or situation, while also managing and restricting the scope of their activities and conditions. - Joseph’s “just my thoughts”
When you exchange a department store gift voucher or any brand coupon for cash (currency), the par value written on the certificate is reduced and replaced. Department store gift vouchers can only be used at department stores, while cash offers different usage values that can be utilized without restrictions within the country. In other words, the relative value of the gift voucher compared to cash is taken into account. At this point, the difference in the exchange range creates this discounted value, even though the securities maintain the same trading par value. In reality, the market value of payment methods is determined by the scope of use, trading objects, and exchange period. This is why money is also regarded as one of the goods. In accounting, the value base is CASH. This distinction arises because cash (fiat currency) holds the highest value in use within a country, owing to its compulsory circulation power. - Joseph’s “just my thoughts”