What is Money?

 

Money; It can be defined as the most common of the means used for the exchange of goods and services. As an indicator of money value equivalence, it is used as a measure of value, a means of exchange and storage. Although the word money is divided into two as coins and paper money in its most known form; Today, it can be classified into three groups as commodity money, nominal money and nominal money.

Commodity Money

Raw materials that are useful for commodity money can be defined. Although this concept is not possible today, we can see countless examples throughout history where useful raw materials have been accepted as currency. Immediately after commodity money came the representative money, which is supported by commodities but has an easier alternative to physically transporting. We can say that the representation of money has emerged in different places and times in the world. Representative money, by definition, refers to certificates that can be exchanged by a center against a certain commodity.

Fiat Currency

For fiat money, we can say that money in circulation today. Issued based on government decision, gold, silver etc. We can define it as bank paper or paper money used for the exchange of goods and services, which has no money, which is based on the place with its signature and the trust that the paper it issued cannot be imitated.

Cryptocurrency

The concept of crypto money emerged in 2009 and entered our lives. It is electronic money on the basis of crypto money and has all the features of electronic money. Created by Satoshi Nakamoto in 2009, Bitcoin has also been described as the first decentralized cryptocurrency.

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