What Is Currency?

What Is Currency
When you hear the word CURRENCY, it's natural for you to quickly connect it with Money.

Let's first understand the currency itself.

When exchange of goods and services was not viable through contemporary systems, this led to the invention of Currency. 

In a nutshell, a currency is a physical entity that shows itself as a store of some value.

Earlier these currencies were made up of metals like gold, silver, copper, etc.

Later, paper currency came into existence and the shift was also seamless.

This currency consists of some valuable asset and is assured by some authority, in today’s scenario, it's the government or the central bank. 

Journey of Currency Until Today

Gradually currency came up in all new forms, the digital form.

Here, the currency, this store of value currency, went virtual, which means the currency  but only virtually.

Now it generates, operates and exists only digitally. This is often said to be electronic cash.

The money that we spend via online transactions is only a digital imprint of our own money.

The same money that is controlled and operated by the central authority or the bank.

Every other nation today has their own currency. It shows their integrity, stability and strength.

Today we see different currencies on the basis of their nationality.

American Dollars, Russian Rubles, Britain’s Pound, Euro of European countries, Chinese Yuan, Japanese Yen to Indian Rupee, all are examples of currencies. 

Cryptocurrency: Future of Traditional Currency?

Well, gradually people realized that money can operate even without an intermediary control.

This notion brought up the concept of Cryptocurrencies.

The specific discussion on cryptocurrencies can be done. For now, in a nutshell, cryptocurrencies can be understood as digital and encrypted forms of currency.

Cryptocurrencies are said to be the people’s money given its peer-to-peer transactions.

It can only be available virtually and needs no centralized authority, as it is decentralized.

It operates on the  blockchain that ensures safe, secure and reliable transactions. 

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This information is for educational purposes only and does not constitute investment advice. No person should rely on it to make any investment. Investing carries risks, including the loss of capital. All opinions expressed are subject to change without notice. Past performance is not indicative of future results. Always seek the advice of a licensed investment professional before making any investment.