What is Currency?

Currency is something that a group of people agrees on to have value. 

This means even a rock can be the currency (if a certain group of people agrees that it has value). 

It may have physical representation e.g. gold, rocks, or coins. Or it may be virtual or digital. 

Cryptocurrencies like bitcoin and money stored in bank accounts are examples of these types of currency. 

They can be stored transferred and exchanged digitally through software and the internet.

Why is currency important?

It has been observed that mankind throughout its history had started growing exponentially with the introduction of currency. 

When two or more tribes agreed on a certain object to hold value their economic and social condition quickly improved. 

But why is currency so important? Why is it so important that every nation in this modern world had decided to adopt it?

 The answer to that is the value of goods. 

Previously, before the introduction of currency, a person who had an apple field would have traded his apples to a blacksmith in order to buy a new knife. 

But this deal would likely be unsuccessful as there are chances that the blacksmith would not want apples as he would already have them. 

And even if he agreed to buy apples there would always be a debate that how many apples are worth a knife. 

When currency came in, this problem was solved. Now a farmer could sell his apples for currency and then buy a knife. 

The blacksmith would never reject currency as he knows it has value and could be used to buy stuff off its use. 

This allowed communication between different tribes as they could now trade and exchange goods. 

It allowed people of different professions to exchange their goods without any debate or problem. 

Therefore, it led to the development of mankind

However, in this modern world, the importance of currency has further increased. 

A currency represents its country’s people and its leaders. It represents their cultures, values, and norms.

Currency allowed people of different groups and nations to trade and communicate. 

It opened a gateway for development and prosperity. Most of all currency unified people of different tribes to form nations and promote peace.