Fungible - non-fungible

Fungible goods and non-fungible goods: Examples of fungible goods on the left: money, fuel, and commodities and Non-fungible goods on the right: houses, art, people, used cars

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Fungible goods are mutually interchangeable in that, in principle, you could swap in any unit for any other unit of the same type or kind and it would be equivalent. Money is a classic fungible good. A $10 bill is equivalent to any other $10 bill, so if you were to borrow $10 from someone they wouldn't care or expect to get the same $10 bill back.

Non-fungible goods are unique and not mutually interchangeable. Each house, even cookie-cutter houses, is in a unique location, with different neighbours, quirks, and history. Having a print of the Mona Lisa on your wall is not the same as having the original from the Louvre. And swapping people between teams at work, even people with similar experience, will still result in different outcomes.

A nice thought experiment to distinguish fungible and non-fungible goods is to ask if you were to borrow one, would it make a difference if you returned a different one? So if you were to borrow my car, you could return it to me with a different tank of fuel (a fungible good) and it wouldn't make any difference to me. But if you were to return a different used car (a non-fungible good) that would be rather odd.

In case you've heard of NFTs (Non-Fungible Tokens) and would like to understand their flaws and promise better I recommend the NFT Freakonomics episode of the 3-part series What can Blockchain do for you?

Also see, rival and non-rival goods

Published 28 Aug 2022

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The Three Bricklayers Story

Discovering Truth and Beauty and Sharing it with others

The Three Bricklayers’ story illustrates the power of purpose. What is the 3 Bricklayers Story? A simple version goes that a person walked past a building project and asked three workers the same question: “What are you doing?” The first replied, “I’m laying bricks.” The second replied, “I’m building a wall.” And the third replied, “I’m creating a cathedral.” The story highlights how we can view our work differently depending on whether we focus on the immediate task, the short-term goal, or the larger vision. The first worker focuses on the task at hand, the second sees the outcome of their work, and the third connects to the broader purpose of the project. Various tellings have the first worker hunched over or working slowly. The second and third workers take increasing pride in their work, often achieving more. Finding Balance in Work There’s value in all three perspectives. There can be a lot of pride and skill in laying bricks—or whatever your equivalent task is—as well as it can be done. Setting clear, intermediate goals keeps progress on track. And someone who spends all their time looking at plans or daydreaming about what the building will become may not lay bricks as well as they need to. To do something well, we probably need a balance of all three aspects: Pride and skill in detail and craft Progress through clear intermediate goals Vision and meaning for our work Understanding what I’m working towards and believing it’s worthwhile is a powerful motivator for me when the going gets tough. This post isn’t really about cathedrals, but I studied the brilliant Catalan architect Antoni Gaudí in my teens. As a real-life cathedral metaphor, his incredible Basílica de la Sagrada Família in Barcelona is a striking example. Gaudí’s vision for the basilica has inspired generations of artisans and workers since he took over the project in 1882. Execution, however, has been a challenge, with construction ongoing today. But that hasn’t stopped it from inspiring and drawing in visitors for decades. I like the three bricklayers parable as a reminder that when I’m grinding on something, it helps to reconnect with the why behind my effort. Origins of the 3 Bricklayers Parable Like many parables, this story has been told in different forms. An early version appears in Bruce Barton’s 1927 book What Can a Man Believe (p252), featuring Sir Christopher Wren, the architect of St Paul’s Cathedral in London after the Great Fire of 1666. “One morning he passed among the workmen, most of whom did not know him, and of three different men engaged in the same kind of work he asked the same question: ‘What are you doing?’ From the first he received the answer: ‘I am cutting this stone.’ From the second the answer was: ‘I am earning three shillings and six pence a day.’ But the third man straightened up, squared his shoulders, and holding his mallet in one hand and chisel in the other, proudly replied: ‘I am helping Sir Christopher Wren to build this great cathedral.’” It’s hard to believe it happened, but that doesn’t mean it can’t be helpful. Related Ideas to the 3 Bricklayers Story Also see: Autonomy Mastery Purpose The Blind and the Elephant Hope Flow Goldilocks Tasks Find Your Why Not The Story Spine Forcing Function…The Three Bricklayers’ story illustrates the power of purpose. What is the 3 Bricklayers Story? A simple version goes that a person walked past a building project and asked three workers the same question: “What are you doing?” The first replied, “I’m laying bricks.” The second replied, “I’m building a wall.” And the third replied, “I’m creating a cathedral.” The story highlights how we can view our work differently depending on whether we focus on the immediate task, the short-term goal, or the larger vision. The first worker focuses on the task at hand, the second sees the outcome of their work, and the third connects to the broader purpose of the project. Various tellings have the first worker hunched over or working slowly. The second and third workers take increasing pride in their work, often achieving more. Finding Balance in Work There’s value in all three perspectives. There can be a lot of pride and skill in laying bricks—or whatever your equivalent task is—as well as it can be done. Setting clear, intermediate goals keeps progress on track. And someone who spends all their time looking at plans or daydreaming about what the building will become may not lay bricks as well as they need to. To do something well, we probably need a balance of all three aspects: Pride and skill in detail and craft Progress through clear intermediate goals Vision and meaning for our work Understanding what I’m working towards and believing it’s worthwhile is a powerful motivator for me when the going gets tough. This post isn’t really about cathedrals, but I studied the brilliant Catalan architect Antoni Gaudí in my teens. As a real-life cathedral metaphor, his incredible Basílica de la Sagrada Família in Barcelona is a striking example. Gaudí’s vision for the basilica has inspired generations of artisans and workers since he took over the project in 1882. Execution, however, has been a challenge, with construction ongoing today. But that hasn’t stopped it from inspiring and drawing in visitors for decades. I like the three bricklayers parable as a reminder that when I’m grinding on something, it helps to reconnect with the why behind my effort. Origins of the 3 Bricklayers Parable Like many parables, this story has been told in different forms. An early version appears in Bruce Barton’s 1927 book What Can a Man Believe (p252), featuring Sir Christopher Wren, the architect of St Paul’s Cathedral in London after the Great Fire of 1666. “One morning he passed among the workmen, most of whom did not know him, and of three different men engaged in the same kind of work he asked the same question: ‘What are you doing?’ From the first he received the answer: ‘I am cutting this stone.’ From the second the answer was: ‘I am earning three shillings and six pence a day.’ But the third man straightened up, squared his shoulders, and holding his mallet in one hand and chisel in the other, proudly replied: ‘I am helping Sir Christopher Wren to build this great cathedral.’” It’s hard to believe it happened, but that doesn’t mean it can’t be helpful. Related Ideas to the 3 Bricklayers Story Also see: Autonomy Mastery Purpose The Blind and the Elephant Hope Flow Goldilocks Tasks Find Your Why Not The Story Spine Forcing Function

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