Awww, the feel of crisp dollar bills and the jingle of coins in our pocket.
That feeling is being lost with the rise of technology. Today, most of us swipe a card or tap our phones when we want to buy something. And, don’t think about asking a millennial behind a cash register to make change for you. Many simply haven’t been taught how.
With the rise of digital currency, future generations may not get to experience the sensory delights of handling money. But its important that the story of how money came to be is understood.
Money has no value in and of itself. The only thing that makes a $1 bill worth a dollar is that it is what it is worth when we exchange it for something we want. Money was developed over hundreds of years to standardize the value of what was being traded for.
You can argue that digital currency is the latest rung on money’s evolutionary journey. In today’s world, we socialize, shop and search by tapping on the keys of our electronic devices. It just makes sense that money would become digitized as well.
Digital currency became “a thing” following the financial meltdown that occurred in the 1990s. People simply didn’t trust banks to keep their money safe and began looking to digital currencies as a viable payment method.
With all that in mind, here’s where you get to have a little fun with the younger generation. Remind them that when you use a credit or debit card or even PayPal, you are actually using digital cash. Money itself — the tangible dollars and coins that you can feel — doesn’t trade hands during digital transactions, but the amount of the money does.
Enter bitcoin, a medium of exchange that came into being a few years ago. It is Used to buy and sell things electronically and solely on the internet. A public ledger called a blockchain allows everyone to see their transactions.
Each of these transactions is verified through a process called a nonce that ensures that it only went through once. After the verification has taken place, the next block can be recorded and verified.
And that is the story of how money works and has evolved to today’s digital currencies.