What is Cryptocurrency Cryptocurrency Definition Cryptocurrency Pros and Cons Cryptocurrency Alternatives Pros and Cons of Cryptocurrency WRITTEN BY ABBY COLLINS | Updated 12 January 2022 What is Cryptocurrency Cryptocurrencies have become this decade’s most successful financial disruptor. Despite being a speculative digital currency, Pew Research states that 16% of all Americans have invested and traded crypto. This …
Money is a medium of exchange. It allows two people to trade without needing what the other wants. This can come in all types and forms. So long as people trust and accept a certain form of money; it can be used as a medium of exchange. For example, gold was historically used as a form of monies. Farmers would go to market and sell their cows in exchange for a certain amount of gold. This gold could then be exchanged by the farmer for a loaf of bread from the baker.
We can define Commodity money as a physical good that consumers universally use to trade for other goods. In other words, it is like the money we use today, but has an actual value.
Fiat money is a currency whereby its value comes from government decree. This is because government grants it legal authority for consumers to use this as legal tender, but also for businesses to accept it. On its own, fiat money has little value.
