this post was submitted on 09 Mar 2024
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This is literally what you do every day. You exchange something for goods and services. This something is money based on it's functional role, not some obscure definitions. To be money, it must be used as money. To be used as money, a group of people must agree that the item is worth exchanging for. This something does need to fulfill additional properties to be useful, notably it must be fungible, durable, portable, recognizable, divisible and have a stable supply. Gold does fit this description, but so does fiat.
What you are describing is a government issued currency, which has some overlap with money, but is not the same thing. Maybe you should research on this stuff.
Yes, now that there's money it's what happens. Prior to money there were debts, but no exchange of "X" for a set amount of goods or services.
To be money it must meet all the definitions of money. It must be a store of value, it must be a unit of account and a medium of exchange. There was no real money until there were states.
Government issued currencies are the only real currencies. Everything else is valued by what someone will pay for it in government issued currency.