What is money ?

Money serves as a means for people to store and exchange value.

Consider John, a village potter. In his era, money didn't exist. Instead, bartering goods was common practice. Once, John exchanged a pot for fish with Mike, who initially agreed but later declined, not needing more pots. This highlighted barter's flaw: not everyone desired what John offered.

Jim sought a universally valued item. He noted that grain, shells, and large stones were used as currency. Then, Jim stumbled upon gold. Gold doesn't perish, is scarce, divisible, and durable. It became the perfect exchange medium. Jim fashioned it into equal-sized coins, thus inventing them.

As time passed, the burden of carrying hefty gold coins grew. John then introduced paper representing gold, leading to the creation of gold-backed paper currency, prevalent until the mid-20th century.

Presently, money isn't supported by gold or tangible assets, prompting concerns about its value retention. Consequently, this has spurred interest in alternative currencies like cryptocurrencies.