It refers to any asset used by man as a payment system. Generally, money is given in physical form, which is called cash, and is known through bills and coins, however there is also money or virtual currency which is represented through electronic or bank accounts, but in both cases their monetary value is the same. Due to the development that has arisen in society and its legal evolution, in addition to having cost value, it also has legal value and is considered a currency of current use.
What is money
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It is any good or asset that can be accepted as a means of payment or economic exchange, it is generally represented by coins and bills, but throughout history different objects have been used for this purpose. Not only is money used physically or in cash considered, currently there is electronic money, digital currency or any other type of asset that can be used as a means of payment or collection, as is the case of invoices, because they are A collection document is also money, since the person who owns it has the right to collect it.
It is said that it is a denomination in common use taking into account that in most cases each country has its own currency, there are different types depending on the geographical region, for example, there is the euro, the dollar, reais, pesos, bolivars, etc.
What is money for
The main function of this is economic exchange and being able to carry out transactions, cancel debts, be able to acquire goods and facilitate savings. It is also used as a unit of account, that is, it allows setting prices and keeping accounts.
With the appearance of the exchange currency, the barter operations that were used in the first exchanges of goods that human beings carried out are facilitated.
For it to be used and fulfill its function, it must have the following characteristics or conditions:
- It must be accepted by the majority of the population, generating in them a feeling of trust and conformity with their employment.
- It must be considered durable, being able to count on it as a long-term store of value, enabling savings.
- It has to be used as an accounting unit, allowing the value of products and services to be measured and compared so that they can be equitable.
- And it must also be easy to transport, handle and store so that the transactions carried out with it are done in a comfortable way.
The Origin of money
Since the origin of the human being, he has had the need to acquire food and tools to satisfy his needs and survival. It is here when barter arises, this being the first system of exchange of products created by man.
Then the products and objects were exchanged for precious metals: gold and silver, since these do not deteriorate over time, they could also be easily transported and divided into pieces of different weight to facilitate payments.
The first coins were created by the Greeks, in the 7th century BC, they were made of electro, it was an alloy or union of two metals, in this case silver and gold, struck by a hammer and with a mark and weight authorized by its manufacturer.
A few years later, almost simultaneously, the first coins also emerged in China and India, but they had very varied shapes, such as ingots, dolphins or halberds. On the contrary, in Greece they had circular shapes, similar to the coins that exist today. The most used materials were gold, silver and bronze and, depending on the weight and the metal, they had a different value.
The precious metals gave way, centuries later, to other alloys much cheaper and easier to obtain and to paper money, then the fiduciary system arrived. The first banknotes emerged in Sweden in the 17th century. This new form of currency was based on trust, since a number printed on a sheet of paper marked its value. For several years, this system coexisted with the gold standard.
Types of money
The main function of a currency is that it can be used as a medium of exchange, currently, in modern societies money serves as a store of value, since in the economy the value of things is measured in amounts of money. For this reason there are different types of money.
Fiat money
This type is also called inorganic, it has its own value, but it has the popular confidence and the support of governments. Since they represent the value established by financial institutions in certain markets or respected spaces, being the result of a social pact, an example of this type of money is the Euro, which has the value assigned by the appraisal and in this way assumes it the society.
Merchandise money
In the case of this type, it is commonly used as a commodity intended for consumption or commerce. In one way or another, this medium of exchange always has the same value. It is so called because it is derived basically from the good of which it is composed. This allows it to be used for the exchange of goods.
An example of this class is gold, silver, salt, silk, etc; so it is also a monetary resource, since it has its own value and can be used as a currency for the exchange of goods. Together with what it represents, this material has a validity equivalent to the denominations conferred in economic exchanges.
Legal money
This is the one established by each country or nation, they are issued by the competent institutions, in some cases in the central bank or mint of certain countries. This is the one accepted by all citizens of the community and used for all types of economic exchange. Since it is the legal currency who owns it either in coins or bills, you can exchange it for currencies from other countries such as the dollar and the euro.
Bank money
It is used to carry out transactions in financial or banking entities, such as loans and deposits made in private banks, most of this type of transaction is made electronically or through checks, for this reason it is more important than current or legal money.
There are several types of bank money since private banks offer the opportunity to save family money and channel it to other purposes, due to this they offer different forms or financial savings assets that seek to adapt to the needs of customers, among them are:
- Deposit at sight.
- Fixed-term deposits.
Money i will pay
It refers to a text or printed document that supports the commitment to pay a bearer security. It is a promise of payment in writing that represents two things: on the one hand, a promise to pay and on the other, a loan of money granted by a banking or credit institution.
Another type of money is also the check, since when a person who has a checking account writes a check, what he does is provide the promise of payment that the bank will make on his behalf. For the promissory note to be valid, it only needs the signature of the individual who is pledged, because it has no formal requirements for its preparation.
Electronic money
This money does not exist physically or in traditional paper money, but it is useful to carry out transactions through social networks on the internet, or any other digital medium. Electronic money has undergone a great boom in recent years, as it provides many advantages to those who use it, among them the saving of resources, time and overcoming geographical obstacles.
Another type of money is virtual as is the case with cryptocurrencies, bitcoin being the best known. It is a type of money based on mathematical algorithms and that is not backed by a central bank.
What is money laundering
The money laundering action refers to a money converter, this consists of keeping hidden the origin of funds that were obtained through illegal activities. Also called money laundering, the aim is to make the money appear as the result of legal financial or economic activities.
The history of this type of action is ancient and with the passage of time its techniques have been perfected and increased. There are three basic steps that are very elaborate and currently used to carry out money laundering, these are:
- Placement: This step refers to converting the money that is obtained in an illegal way, into assets and making it look like legal money. The most common way to do this is by managing to deposit said money in the bank accounts or funds of anonymous companies or intermediaries, however this is the most vulnerable time for criminals to be discovered.
- Stratification: It involves a series of games or transactions to place the money far from where it was obtained, that is, it can be invested in the purchase of luxury properties, works of art, cars, this capital can also be transferred to various bank accounts. Casinos are another strategy used for money laundering.
- Integration: In this step, the money is cleaned so that it is integrated into the economy and the criminal obtains a greater benefit that allows him to earn money. It is usually done by investing said money in a legal company for profit. In addition, they use it to create foundations and organizations, where the offender is appointed responsible or director, thereby obtaining an exorbitant salary and other benefits.
In 2012, Mexico published a Federal Law for the Prevention and Identification of Operations with Resources of Illicit Origin. The objective of this law is the protection of the economic and financial system of this country, it establishes measures and procedures to detect and prevent operations and acts that are involved with resources of illicit origin.
In an effort to win easy money, many people attend casinos, betting banks, gaming centers with money machines and slots, in these types of vices millions of citizens of different socioeconomic strata are trapped, with the sole objective of achieving great amounts of fortunes.
How to make money online
On the internet, many ways have emerged on how to get money, but it may not be so easy, in addition there are fraud and insufficient methods in these processes.
One of the ways to achieve this objective is through your own websites, for this it is necessary to choose a niche, generate traffic and finally sell products and services to visitors. When you have your own website, you have more freedom to make a profit.
Another way to increase income through the internet is by becoming a Freelancer, this consists of working from home or independently, it sounds like a perfect plan: no fixed hours, no uniforms or the need to spend time in traffic. Ideal for people who are tired of sticking to a schedule, don't like their boss, or just feel like they need to take another course in the career field.
