What does being physical have to do with being divisible & fungible & durable? Why not glass or sand or platinum? And why has paper money worked so well for so long?
Other important aspects are verifiability as well the cost of securing & transporting a thing. How easy is it to secure & trasport large amounts of gold?
Durability is why not sand or platinum (or historical items like copper, silver, salt, etc)
Why does being physical matter? Because reality matters
Why has fiat lasted "so long"? That's a good question, I think largely it's a debt bubble that creates "perpetual" demand for the debt instruments to pay the prior debts. I think it's likely to collapse before too long and we shouldn't model the next monetary system on the worst aspects of the one that's collapsing now.
Sand & platinum are both extremely durable.
Software is part of reality too & facilitates all sorts of very real things.
Debt does play a role, but there is no debt in the creation of Bitcoin.
Why did people naturally choose to use paper notes instead of using gold coins directly?
