What is money?

Money is an essential part of our everyday lives. It is a fascinating subject with a long and complicated history. From barter to bitcoin and cryptocurrencies, money has taken many forms.

Money is something we use every day to buy stuff, pay for services, and trade with others. But what exactly is money? At its core, money is anything people agree has value and can be used to exchange goods and services. Over time, money has evolved from shells and livestock to coins, paper bills, and now digital currencies like XRP or Bitcoin.

Money isn’t just for buying things it also helps us:

• Store value (save for later)

• Measure worth (compare prices)

• Make trade easier (no need to barter)

Fiat Money: The Government’s Promise

Today, most money is fiat currency like dollars, euros, or yen. Fiat money has value because the government says it does, not because it’s backed by gold or silver. Its worth depends on people’s trust in the system. If that trust disappears, the money becomes worthless.

Banks & Digital Money

Most money today (over 95%) isn’t even physical, it’s just numbers in bank accounts, in databases. Banks keep our money safe, lend it out, and help with payments. But they’re also businesses, making profits from fees, loans, and investments.

The government is supposed to regulate banks to prevent abuse, but history shows they often fail. Banks control our money—charging fees, setting interest rates, and even creating more money when they want. Many people argue we need a fairer, more transparent system.

Then Came Bitcoin

In 2009, Bitcoin changed everything. It introduced a new kind of money: decentralized (no banks or governments in control) and internet-native (existing only online). Essentially, digital cash. Bitcoin challenged the traditional idea of money, proving that people could store and exchange value without middlemen.