Money – A Double Concurrent Theory

02.11.2021
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Money – A Double Concurrent Theory

Money is the most important financial commodity in our entire society. Money acts as a universal solvent, which distributes incentives, rewards and punishments. Without money, society would crumble and it would be impossible to enjoy basic needs like food, shelter and safety. Money, more than any other commodity, is quantifiable, a standardized item or verified account which is normally accepted as payment for certain products and services and payment of debts, including taxes, at a specific social or economic context. It is used to facilitate trade by facilitating the movement of goods and services across borders and among countries, to facilitate banking by making available to creditors certain financial instruments that are usually deemed as secure and safe and as an instrument of exchange.

Money

 

Money is generally accepted and used as a medium of exchange, as it facilitates trade and also enables individuals and groups to ascertain the value of goods and services on the market. Money is not generally accepted and used as a medium of circulation of capital, as it is not considered as a portable good and it is not regarded as a medium of saving as it is not a tangible commodity. Instead, money is regarded as a means of payment in kind rather than as a store of value. Since money does not grow on trees, it can be considered as a non-perishable asset. A great number of people consider paper money to be a form of slavery.

 

A large number of goods and services are traded on the global market, every day, each transaction involving one form of money resulting in another form of money. Money as a commodity plays a vital role in the smooth running of the economy and helps to keep the domestic economy buoyant. For instance, when an American buys a loaf of bread from a British shopkeeper, he pays with dollars, and the shopkeeper takes care of the conversion process in his native currency, converting the dollars to pounds.

 

There are numerous forms of money systems existing in the world. The most widely used and widely adopted form of money is the US dollar which is widely used around the world in almost all trade transactions, though in a very small way. There are also currencies other than the US dollar which are widely used as well.

 

Cryptocurrency is a relatively new money system and has its own pros and cons. In fact, no single form of currency was able to replace the traditional method of bartering until the emergence of cryptosporters who started to provide virtual exchanges for goods. Cryptocurrency is not a physical commodity like gold or silver which are easily traded in the open market. However, it is traded in the same way that stock trades are traded, through traders who purchase commodities in the currency of another country and sell them in their local currency for a profit.

 

Cryptocurrencies can be traded for direct consumption in their native currency, or they can be traded as derivatives such as futures, options or securities. Either way, the buyers and sellers benefit from using a cryptopoker for future transactions as there are no exchange costs involved. This means that the buyer is able to sell goods for cash in their native currency and incur no further cost for goods or services purchased.

 

Futures and options are not the only types of tradable objects in the global markets today. Currencies themselves have become very tradable due to the rise in value of the US dollar over the past few years. This has created the incentive for investors to buy the currencies of countries which are seen as having higher economic growth potential. This ability to effect the foreign exchange market through future transactions has made currency trading very popular in recent times and created a number of new markets for both buyers and sellers. Some of these new markets include hybrid financial instruments which combine the features of currencies and commodities. This is another reason why many businesses and individuals have chosen to use futures and options instead of investing directly in commodities.

 

One of the main reasons why Futures Trading and Options are very popular in the current economy is that it is an extremely low risk method of earning returns. It is comparable to investing in shares but has less of the risk associated with it. The currencies traded on the exchange platform are usually those which are widely recognized mediums of exchange which are internationally accepted. When you purchase this type of contract you are basically buying a stock in a company but instead of owning the actual commodity, you are trading in the foreign currency exchange market. With this type of arrangement you will generally be able to generate a double coincidence of money when you sell your assets and buy them back because you are speculating that the value of the currency will rise again in the future.

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