Do You Really Know Your Money? The Difference Between Money and Currency

Throughout the ages, different currencies have been used – spices, shells, grains and, more recently, paper -, but only gold and silver have been money. What we commonly call money is actually fiat currency, which does not hold value in and out of itself. It only acts as a medium to transfer value from one asset to another. This transference is solely based on confidence and it is strongly affected by the amount of currency in circulation. That’s why it’s called currency.