What is Money

Money serves three purposes: a store of value, a medium of exchange, and a unit of account. It acts as a medium of exchange, facilitating trade and economic activity. Its value is subjective, influenced by market preferences and monetary policies. Over the centuries there have been different forms of money from cowries to metals to coins and paper-printed money known as Fiat. Fiat money is government-issued currency that is not backed by a physical commodity but by the stability of the issuing government. Money has evolved from barter to physical metals, to paper money, to electronic, and now to digital. ​​Bitcoin is primarily an innovation on money.

What Is the Difference Between Money and Currency?

Money and currency are interrelated but different terms. Currency is one form of money. Often issued by a Fovernment, it is one type of payment that people can use within a jurisdiction. Money, however, refers more broadly to a system of perceived value, which allows for the exchange of goods and services.