Commodity Money
Commodity money is a type of currency where the money itself has intrinsic value, typically derived from a physical commodity like gold, silver, or other valuable goods. It functions as both a medium of exchange and a store of value based on its material worth, unlike fiat money which has value by government decree. Historically, it was widely used before the adoption of modern paper and digital currencies.
Developers should learn about commodity money to understand the evolution of monetary systems, which is crucial for fields like blockchain, cryptocurrency, and financial technology (fintech). It provides foundational knowledge for designing decentralized systems, such as Bitcoin (which draws inspiration from commodity-like scarcity), and helps in analyzing economic models in simulations or trading platforms. This concept is also relevant in historical or educational software development.