When asked, "What is money?" Answers come back, a dollar, a euro, a yen, coins, and someone else says casino chips and tokens. Most money we think of is merely a piece of paper or metal coin that has little to no actual value in itself. Even with gold and silver coinage the face value was often different from the value of the metal content. In the United States as in some other countries it was backed by a physical commodity such as gold or silver. While the currency was backed redemption was later denied.

So, why do people value it? Because it is accepted as an instrument of value, it's a simple accounting device. One unit of 'money' equals a defined unit of goods, service or commodity. In trade one needs a 'wild card' or something wanted by everyone that could be universally traded, that is where money came in. It was accepted as a certificate of value that was owed and this debit could be traded. We think of money as a physical thing but it is not always. When you use credit you are spending money that has not been made. The same is with a check until it has cleared. The check represents money and the money is still in the bank until the check clears. Also, with the new age of electronics you can be paid 'electronically' and credits are added to your account, you in turn pay bills electronically and the credits are moved with nothing physical being moved. Inflation occurs when the quantity of money in circulation greatly outweighs the goods, services. The US adds money into circulation and that can cause goods to become inflated in value, adding credit debit does the same thing by putting artificial money (money that does not exist yet) into circulation.

So, What is money? A simple accounting tool that has little or no value in itself but represents great value as long as it is accepted by the people using it.