Author: Louise Andrea Jimera
In this world, there is one truth we must face: we need money in order to survive; it is an unavoidable fact of our existence as a human being in this world. Of course, there was a time when this was not the case. A lot of societies in this world started without money or currency. However, as we develop as a species, we also created means as to which we can create a market to interact with one another.
Our resources are becoming limited, and money creates a boundary between those who cannot afford and the rest. Money is also one of the most powerful influencers in the world today. If you have money, you can influence the world to make it better or worse place. You can even create your own world and build to your heart’s content.
We always think of money in its physical form, the coin and paper bill. They have a long history along with our existence as human beings.
The coin was first introduced and is the longest type of currency in use today. Many kingdoms and empires used coins as a means of currency. It is usually made with silver and gold, and most of the previous empires and kingdoms have their own of producing them. Each coin may bear the insignia of the country or the current ruler, along with the other symbols associated with the mint. The higher the gold content of the coin, the higher is its value which varies depending on the location as well. In the current era, most coins in the world are not completely made of gold although there is a bit of it in every coin.
However, there are a lot of issues with coin and minting so some countries decided to abolish it. Canada is one of the most famous countries who have decided to get rid of the coin. Read more about it here: https://www.economist.com/the-economist-explains/2013/02/12/why-has-canada-killed-off-the-penny.
The paper bill is next, and it is easier to carry around compared to the coin especially in larger amounts. It is commonly referred to as banknote, as it originated with its use in the banks. According to some records, banknotes were used as a placeholder for people to pay their accounts in the bank. Later on, central banks decided to print banknotes to provide it to the people for them to use in their daily transactions. Ever since then, only the government can legally create banknotes for their own country. It has been that way ever since, and it has been really useful for the world. However, it still has its own problems.
One of its issues is its vulnerability: it can easily get destroyed by moist, tearing or burning it. Banknotes can also be copied very easily, especially in this world where advanced photocopiers exist. There are a lot of famous cases about this, most notably this one here. Most central banks have been trying to solve this issue, but many can still create counterfeit bills.
This is why the need for a more secure type of currency is currently on the rise, especially with the prevalence of online transactions. Credit and debit cards can be used, but there are still ways to track and take advantage of your information using these cards.
Cryptocurrency is considered as one of the more secure ways to pay for your transactions online. It is a completely virtual type of currency, and you can even “mine” for it if you have an advanced computer system. The way it protects you is with its two way system: the two parties who are transacting can only receive and send payment with a unique passcode. These passcodes change based on the transaction which increases the security. As it is also a form of investment, you can track its value online using websites like Rubix. You can even exchange one cryptocurrency to another like from BTC to ETH. It is really easy once you get the hang of it.
There are now many ways to use currency whether it is on the physical world or the virtual one. The only important aspect that you need to care about is your own security and the impact of your purchase to yourself. Learn how to spend wisely and the currency that you will use will not matter anymore.