How does currency work?
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Currency is a unit of exchange and a store of value.
A unit of exchange means it’s how you measure stuff. One *dollar worth* of beef is a specific amount of beef, one *dollar worth* of gold is a specific amount of gold. Trade is denominated in these units. People are always exchanging various goods, and denominating the amounts of the goods in some currency, like dollars, euros, yuan, etc.
A store of value means it is value that you can put under your mattress or in a drawer for a while and it’ll still be valuable later. It doesn’t go rotten like food does, and it doesn’t require a lot of upkeep or maintenance to keep it in good condition. So your wealth can last a long time if you keep it in currency, rather than in something more vulnerable like livestock, or bushels of wheat.
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