We have received a question from one of our readers:
‘What is the difference between money and currency? Anna’.
Answer: Many people believe that a currency is the same thing as money. If someone gives you cash, you think, probably, that it is money. It is not. A currency issued by a government and represent one of the building blocks of an economy and is used as merchandise in exchange for goods and services. A currency can not collect value in itself, rather, it is a means used to transfer value from one asset to another.
Money derived from ancient Egypt. Here people began to use gold and silver as currency. But it was not an exact science at the time, and it was difficult to know what and how much it was worth. But it was a start, and it eventually developed to the money laid the very foundation of civilization and a more efficiently governed society.
Money, unlike currency, has its own intrinsic value. Money can always be used as currency, but currency can on the other hand, is rarely regarded as a money with an intrinsic value.
The paper represents the only value of something that is hidden somewhere else.