Currency vs money

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What if we told you those dollar bills in your pocket were not money? Well, they're not. The dollars in your pocket are the national currency of the United States.


What is difference? "Money" is all of the below plus a "Store of Value". This means money is able to be saved for long periods and retrieved at a later time with its purchasing power unchanged.
THE IMPORTANT DIFFERENCE BETWEEN CURRENCY AND MONEY[1] Currency Money
Medium of Exchange Is able to be used as an intermediary in trade. Yes Yes
Unit of Account Is able to be numbered and counted. Yes Yes
Durable Has a long usable life. Yes Yes
Divisible It can be divided equally into smaller units (You can make change). Yes Yes
Portable It is easy to carry or transport. Yes Yes
Fungible Each unit is capable of mutual substitution, meaning units are of equal value

($1 in my wallet is worth the same as $1 in your wallet)

Yes Yes
Store Of Value Retains its purchasing power over long periods of time.

Only gold and silver have been money throughout history.

No Yes



Currency Currency is a form of money with 3 main functions: a unit of account, medium of exchange, and store of value. Note that in Currency vs money is stated that currency is not money because it is not store of value OVER A LONG PERIOD OF TIME, but it is store of value over short period of time. This is why Lindy Effect is important (this is sentence in money also).


There are national currencies. Some well-known national currencies are:

  • the United States dollar
  • the Euro
  • the British pound
  • Chinese Yuan
  • Japan Yen
  • Russian Ruble

Currency is not money (see currency vs money).