Evolution of Money, Commodity to Digital

Evolution of Money, Commodity to Digital

Money is an asset that is generally accepted for payments of goods and services or it use for repayment of debts clearance. Money is spendable item, most liquid form and it is made of commodity, coin, currency or new version Digital Currencies
Money has three main characteristics, it is used for payments, it has unit of account and it is a store of value.

Main types of money. Commodity, Fiat & Digital

Commodity means things have intrinsic value, like salt, silk, oil, crops, silver and gold. Commodity has standardized units with durable life. Most important commodity has high value than its weight like Gold.
Commodity is divisible and mostly use in small units like oil , silver and gold. In human history Gold is most common commodity money

Fiat Money Most use form of money is fiat money in the world now, it is called paper money. Its value come from government decree(Fiat).
Paper note which use for fiat money has cost of only 0.04% approximately of its worth but they backed by government power.
Paper note are mostly use for payment of goods and service. These are also use for repayment of debts, and we accept it because they can be use in future.

In start fiat money was backed by commodity like gold but now a day these backed by only government power like USD is most popular fiat currency note in the world, and many other currencies are pegged with US dollar. In today’s world, economic system fiat is not backed by commodity by gold because it is very expensive and unnecessary.
Fiat use only few resources to produce vs commodity. Fiat is mostly in circulation and can be measured easily to collet tax, while commodity is only personal use of peoples.

Future of Money

The time is rapidly approaching the availability of safe, convenient, fast and secure system of payments or repayments. Virtual or Digital currencies fulfill all these requirement of fast and secure payment, repayments. These are convenient in use, Over the internet can be transfer anywhere in the world very easily in any time even from your cell phone.

Bitcoin is mother currency in digital system of currencies, like fiat to USD the all-digital currencies compare with Bitcoin. Now hundreds of virtual currencies are available in market.
In recent scenario where China banning their Digital exchanges for local trade and want to regulate the digital currencies but allow to deal with international digital exchanges.
On the other hand, virtual currencies are going more popular in day by day in business, trade even are having great importance for common man in real life as compared to fiat.
So, the big countries where they want to control it by regulation, but also interested to launch their own digital currencies under the supervision of their Central Banks
Recently India has announced to planning launch of their own Digital currency under the supervision of their central Bank.
Future of money is only form of digital currencies, so it good time to invest wisely and get more benefits in near future.
Good Luck!
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