Without money nowadays no one can imagine their life anymore – it is used almost completely everywhere. People’s wallets are full of banknotes of various sizes and colors, as well as coins. But in reality, money is just paper and this paper as such has no real value. Money banknotes are just pieces of paper with numbers and various elements on them, coins are just round pieces of metal.
The value is what you can buy for it
What services you can get for money. For example, the value of a car is that it can get somewhere, drive away; so is the value of food, because one cannot survive without food. After a few weeks, every living thing simply dies without eating.
In the past, payments for services, such as getting a piece of land to live and build a house on, could be done with cows or any other commodity that the seller deemed valuable. Only later did coins begin to be used. They were given value based on the more valuable metals from which they were made, such as gold or silver coins.
It was only several decades later that paper money was invented in China because it was too difficult for people to carry a lot of metal coins, and some of them were also of very little value. People need money because it is known that other people also need money. So you can give these other people money, but get something else, like a dog. A dog is needed because it protects the house, people. If someone attacks the dog owner, the dog will protect its owner. In addition, a dog is a living being who can become a very good friend. Here is the value a man has bought for money, for a piece of paper.
Money also serves as a measure of the value of different commodities
As well as a means of giving and receiving loans. Not all services and goods are immediately comparable. Consequently, since money is assigned a numerical value, all services and goods are also measured in this numerical system. It allows people to compare the values of seemingly incomparable things, for example, a book costs € 10 and a movie visit costs € 4.
Money is an intermediary, through which one can obtain what one needs. Shops, markets and other places offer everyone the opportunity to buy what they need, such as shoes, food, clothing and other goods or services. All of this allows a person to survive, while also making life easier and providing comfort. When you walk into a store because your phone is broken, you can buy it for a certain amount of money.
For money to be usable and valuable, it must meet three conditions
First, the money in question must be accepted as a means of circulation. Secondly, it must also be legal. And third, it must have features such as validity, otherwise it is impossible to get the required service or good for money. Each country has a certain amount of money ( currency ) that can be used for payment, and banknotes and coins are assigned a value. Countries have value measures that allow the value of goods and services to be measured in prices.
Simply put, money has value just because you can buy something for it so you don’t have to starve, you can improve your life, and you can buy something that may not be vital at all, but it is very much wanted. There is value to things, everything you can buy for money.