Animal money and commodity money differ in several ways:
1. Nature of Value:
• Animal Money: Animal money derives its value from the live animals themselves. The animals serve as both a medium of exchange and a store of value.
• Commodity Money: Commodity money derives its value from the inherent worth of the material it is made of, such as gold, silver, or other valuable commodities.
2. Durability:
• Animal Money: The durability of animal money depends on the lifespan of the animals, which can vary and may not be as long-lasting.
• Commodity Money: Commodity money, being typically made of metals, is more durable and can maintain its value over time.
3. Portability:
• Animal Money: Live animals are less portable due to their size and the care they require, making them less convenient for trade over long distances.
• Commodity Money: Commodity money is highly portable as it can be easily divided into smaller units and carried for trade.
4. Fungibility:
• Animal Money: Animal money is not as fungible as commodity money because each animal may have different characteristics and values.
• Commodity Money: Commodity money is highly fungible as units of the same material (e.g., gold coins) are standardized and interchangeable.
These differences highlight the practical advantages of using commodity money over animal money for facilitating trade and economic transactions.
