Problems with paper as moneyDue to the ease of production, paper money may lose value through inflation and, in today's electronic era, vast quantities of money can be created with a few key strokes. Perhaps the biggest criticism of paper money relates to the fact that its stability is generally subject to the whim of government regulation rather than the disciplines of market phenomena. Paper money can be easily damaged or destroyed by everyday hazards: from fire, water, termites, and simple wear and tear. Money in the form of minted coins is sometimes destroyed by children placing it on railroad tracks or in amusement park machines that restamp it. Mexico has changed its twenty peso note and Singapore its $2 and $10 bills to plastic for the increased durability. Paper money is also subject to counterfeiting. source: wikipedia.org GNU Free Documentation License |
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