So… How Does Money Even Work?

Photo by Alexander Mils on Unsplash

Money is something we use every single day. We pay our bills, we buy groceries, we buy cars, houses, and all kinds of fun things like it’s second nature. But what is money? Is that something we really even think about?

Let’s talk about it… what IS money?

Hey everyone, Andrew Cartwright here,

Here’s how to understand how money works.

I’m going to do one of those cheesy video gimmicks where I start out with the Webster’s Dictionary definition of something. According to Webster, money is “something generally accepted as a medium of exchange, a measure of value, or a means of payment: such as an officially coined or stamped metal currency or newly minted money.

Broadly speaking, CURRENCY is anything you can use to trade in exchange for goods and services. It can be anything (physical or virtual) — as long as people agree that the item has value. Sounds a lot like conversations we’ve been having about crypto in the last few years.

Sure, it’s volatile and a risky investment, but technically speaking, it is in EVERY form… money. Why? Because we decided it was. Honestly, I wish there was a better answer, but that’s how money works: we decide it has value and BOOM, money.