It is said that money makes the world go round. Money, as we more commonly know it, is something physical, like that of banknotes and coins. For the dawn of mankind, the form of money is that of which we can touch, hold, and store. For trade to happen, there has to be an exchange, and there are areas that prosper because it has a marketplace. Nowadays, because of the vast reach of the internet, there is no longer any need for one to go to a marketplace as one can access it and many other industries by going online.
Money brings about emotions, which at times can be very strong. The classic image that might come to mind when thinking about a rich person would be that of a man sitting down on his desk and counting a pile of money. When we think of money, it has that physical aspect that made it necessary to have to meet someone to make a payment transaction. When we hold cash, it is sometimes difficult to let go. We like to see and hold our cash as it can make us feel secure.
Due to electronic money and digitalized money, our funds are no longer just in physical form. When the money is online, we cannot touch it or hold it, all that we have is the capacity to see the amount. However, the funds that are online and those numbers that we see at our ATM balance can be cashed out. We can make a payment transaction online and it will be accepted by a merchant in the same manner as when we make a cash payment.
Payment transactions are made between two parties. A form of money has to be accepted as payment. One example of this is how you cannot spend in US dollars in Europe. You’ll have to exchange your dollars first into Euro for it to be accepted as payment.
The price tags that we see nowadays came for the necessity to place a value on what we purchase. During ancient times, when coinage was created, it was able to lay down the foundation on placing a price on goods and services. The value of the item would be based on the same factors nowadays such as its demand and supply.
Our trade is now connected using networks and most of these networks can be accessed by going online. From our utilities to our commute, which are essential for things to keep on going, we need to make payment transactions. If ever the payment systems fail, it will halt progress as the networked systems cannot function when there is no flow of money for a long time.
When we make an online payment, money can travel around the world with the speed of an SMS. Virtual cash makes our economy boom as payment transactions may be made quickly. Digital money makes the world go round at a faster rate than cumbersome cash.