The idea of currency has been something that I have always found to be interesting.  It essentially entails that a society will give value to a certain material for the purpose of a universal form of trade.  The article “The History of Money” defines fiat money (the money we use today) as “money that is given value by a government fiat or decree”.  Therefore, the material or object in which the society decides to use for its currency does not matter at all because the society itself is giving value to it.  An example of this concept would be here in America.  As a society, our currency is in the form of paper and coins.  Neither of these materials can be used for any other purpose other than purchasing items that actually have a direct use (such as food for sustenance), yet they still have a tremendous value to us.

Hearing the story of the Yaps caused me to draw similarities between difference forms of currency.  In an abstract sense, their currency was just as legitimate as the currency we use today in America.  Stones, paper, and coins have no actual, innate value other than the value we give to them.  Another example that indicates that currency can be abstract but have extreme value is the currency “Bitcoin”.  “Bitcoin” is a form of virtual currency that is basically stored on the internet.  Similar to the story about the Yaps that dropped the stone at the bottom of the ocean but still gave it value, this form of currency is never physically seen or felt, but yet is still given significant worth.

Sources: http://inventors.about.com/od/mstartinventions/a/money.htm

http://sg.news.yahoo.com/bubble-bursts-e-currency-bitcoin-064913387–finance.html