MANY AVATHARS OF MONEY

Long ago, in the absence of money, exchange of goods was in practice. Next came coins made using precious metals like gold , copper. After the advancement of printing technology, paper money came into being and gained currency. Paper money is still holding forte.

Next we had plastic card with our information encoded in magnetic strips. Later the electronic chips were embedded in them. Plastic credit cards ushered in a cash free era. In the computer age money took digital form. That is electronic form. Our bank accounts, balances, deposits, everything were digitized. Instant transferring of money became a reality. Opening deposit accounts, getting credits, payments were a snap. The world was taken over by electronic commerce.

Then, electronic wallets in smart phones. Sending money from one phone to another was possible. It helped even small traders to go digital.

If the ball is passed from one child to another and to another, the children feel happy. Money should flow among the people to keep the economy healthy and people happy. Any system of money should aid easy flow . Digital money aids lot in this direction. Here we should recall "one man's expenditure is another man's income".

Latest avatar of money is cryptocurrency. Example bit coin. It is also a digital money but encrypted in computer coding. So it is purely based on mathematics. There are certain advantages in this type of money.

1. No central bank or government control this currency. You are the sole owner and nobody can freeze your account.
2. It is anonymous. No ID or documents required. Anybody can create a wallet address for the money like bit coin.
3. All transactions are recorded. No unaccounted black money. It is transparent.
4. Money transfers are instantaneous and low fees are levied.
5. It is getting popular day by day. But it is yet to get full legal status.

In spite of all the avatars, hot cash still reigns. Money's value is decided by demand and supply of goods. If the goods are available in plenty or if the goods are highly scarce, the money loose its value. Rapid scientific progress and free availability of all the goods may even make the money obsolete. what "form" money will take in future? The answer is anybody's guess.

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