What Is Money? Its Evolution Over The Years

To better understand digital currency and its benefits, it is worth looking into a comprehensive history of money.

If you’re wondering how money works as a payment method, it needs to satisfy three central functions, which are as follows:

Medium of exchange: This pertains to the item used for trading where both parties involved must agree that the money holds value. 

Unit of account: The medium must serve as a method to price or measure the goods, services, and experiences consumers want to purchase.

Store of value: Money must carry its value for a period of time to be regarded as a medium of exchange.