An Introduction To Money
Money is any verifiable document or object which generally is accepted as payment for products and services and payment of debts, including taxes, in a certain country or socio-cultural context. It can be in the form of coins, banknotes, bonds, money-chips, currency and any other available legal tender. Money is used to trade goods and services. For example, a person may borrow money from a bank and use it to buy something on credit. Money is also transferred from one party to another on the basis of promises, contracts and agreements.
Cryptocurrency is that kind of money system that is based on a digital “tangible” commodity like a computer, software, hardware, a database or a web-based service, and physical assets like money, securities and commodities. It may be in the form of a currency, digital currency, commodities or perhaps a product like gold. It is traded in the same way as all other currencies. A variety of cryptosporms are available including Forex, Digital Cash, Open Ledger Trading, Trade Stock Market and Virtual Credit Systems. Cryptocurrency can be traded or purchased on a global scale through commercial banks, brokerage houses, online forex brokers, central banks, electronic money transfer agents, online exchanges and physical money transfer agents.
The basic idea behind the commodity money system is that it is a universal standard of quantity and value that allows buyers and sellers to specify prices in terms of a basket of goods with a fixed exchange rate. This is done by a process of centralization of payment systems and clearinghouses, including collection, recording, validation and settlement of payments. Money, by its very nature, is a medium of exchange. The exchange value of money is set primarily by the value of the commodity it is bought or sold in.