What Is Money? From Commodities to Virtual Currencies/Bitcoin Nov 20 2017 14:03 languageMoneyScience
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Benton E. Gup
University of Alabama - Culverhouse College of Commerce & Business Administration
March 14, 2014
Some forms of money have been used since 2,200 BC. What constitutes money evolved from commodities with intrinsic value, such as gold, to commodity- backed paper money. In the United States, this was replaced by “fiat” money issued by the Federal government that is “legal tender” for all debts public and private. Eventually, payments evolved to credit cards, debit cards, and various forms of electronic payments. Virtual currencies, such as Bitcoin, are the latest innovation. They act like money but have no intrinsic value and are not legal tender. This article examines the pros and cons of Bitcoins.