It is crucial to distinguish that there are two types of economic money currently governing the world and two other types of money that are no longer in use.
Historical Economic Systems
Commodity Money: Created approximately between 2500 BC and 700 BC.
Fiduciary Money: Created around 1000 AD.
Current Economic Systems
FIAT Money: Introduced in 1971.
CRYPTO Money: Introduced in 2008.
FIAT Money
Coins and banknotes originated around the 7th century BC, evolving over time into FIAT money, replacing Commodity and Fiduciary Money.
Intrinsic Value: FIAT money has no inherent value and is not backed by reserves of precious metals. Its value exists because the law dictates it.
Acceptance: It is widely accepted as a means of payment and a store of value within a country and is fully backed by the issuing government.
Transactions: Every transaction is mediated by intermediaries such as banks or governments.
Currently, there are 180 currencies globally. Among these, the most significant and strongest are:
USD (US Dollar)
EUR (Euro)
JPY (Japanese Yen)
GBP (British Pound Sterling)
CNY (Chinese Yuan)
CHF (Swiss Franc)
CAD (Canadian Dollar)
AUD (Australian Dollar)
SGD (Singapore Dollar)
NZD (New Zealand Dollar)
Challenges of FIAT Money
Due to its close connection with economic factors that generate inflation and devaluation, FIAT money tends to lose value over time. This makes saving or storing money for future expenses increasingly difficult, imposing greater financial limitations.
CRYPTO Money
The creator of cryptocurrency remains anonymous but used the alias Satoshi Nakamoto.
Timeline:
Creation: From Wednesday, July 30, 2008, to Thursday, January 8, 2009.
Implementation: Friday, January 9, 2009, marked the launch of the first cryptocurrency, Bitcoin (BTC).
Value: Determined by supply, demand, and user commitment.
Digital Asset: Cryptocurrencies use cryptographic encryption to ensure ownership, secure transactions, and prevent duplication.
Decentralized Transactions: No intermediaries (institutions or entities) are involved, enabling direct operations between individuals.
Cryptocurrencies operate on a decentralized database, blockchain, which acts as a shared ledger for transaction tracking.
Prominent Cryptocurrencies
Currently, there are over 2,500,000 cryptocurrencies. The most significant ones include:
BTC (Bitcoin)
ETH (Ethereum)
USDT (Tether)
BNB (Binance Coin)
XRP (Ripple)
ADA (Cardano)
SOL (Solana)
DOGE (Dogecoin)
LTC (Litecoin)
DOT (Polkadot)
Advantages and Volatility
Cryptocurrencies are profitable, practical, and possess great potential, despite their high volatility.
The right cryptocurrencies tend to rise in value over time, regardless of temporary declines.
Investment requires informed decisions, proper research, and patience to maximize returns.
Market Trends
Over 750,000,000 people have engaged with cryptocurrencies, representing more than 9% of the global population.
Their widespread growth ensures they are unlikely to disappear or face significant restrictions.
Blockchain Technology
Blockchain provides:
High Security: Prevents duplication or falsification of digital assets.
Immutable Data: Functions as an extensive, decentralized ledger where information is securely stored and unalterable.
Resilience: Practically impossible to hack, as any compromise would render the cryptocurrency worthless.