The concept of currency
Before knowing anything about Bitcoins first we must understand the concept of currency and off-course how regular money works.
I guess the first question that will rise in your mind would be "What is the difference between money and currency?" So without investing your time in different kind of miths let's understand the difference between money and currency.
Money
Money is the general term used for any commonly accepted "medium of exchange". Money can exist in any form most commonly an object or maintained record of transaction which is acceptable by the significant majority of people as payment for goods and services.
Currency
Currency is the name for the commonly accepted form of money that is in circulation. In most cases currency is represented as banknotes and coins but it's definition can also encompass anything that is commonly held to represent values and is accepted on those terms. So basically currencies are rigidly defined by the system or economies they are commonly used in society.
Money & Currency
in everyday speak money and currency are interchangeable terms however in precise usage it's important to note the difference.Example- your friend has a lot of money but if he buys a suit in Italy he better make sure he has the right currency(Euro).
How does money came into existence ?
As societies grew and began trading with other societies the need for a universal "store of value" gave birth to minted money that was based on precious metals i.e gold & silver.
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