History of Money - E-book - ePub

The history of money tells us of the development of the meansthrough which transactions can be carried out with the help ofa medium of exchange. From eons now, man has beenexchanging goods for a certain price. This price came either inthe form of other goods or money. The interesting journey ofmoney from barter products to bitcoin and electronic moneycovers different ways in which societies and cultures perceivedmoney.
There were a lot of things that were used as a medium ofexchange before money made its appearance. These includedlivestock, vegetables, grains which were useful for the people. But then there were other things like cowrie shells and beadswhich were used for money solely because they were veryattractive. Precious metals and stones were also used as amedium of exchange because of their usefulness andattractiveness.
In the modern world, money has gained a different aspect. Itdoes not require an exchange of produce or commodities, instead, it relies on the exchange of currencies. Money isavailable today in different forms like currency notes, coins, credit cards, and electronic funds. In as early as 350 BC, the Greek philosopher Aristotle spokeabout the importance of an object for bartering it or selling it. The first official currency is said to be minted in 600 BC inLydia which is modern day Western Turkey.
But there hasbeen evidence that money may have existed before this invarious other cultures and cities. Gradually, the idea of giving monetary value to a relativelyinsignificant object in order to use it as money became apopular idea. This gave rise to bank notes which are otherwisejust a simple piece of paper with no value. The latest development in the history of money is theintroduction of cryptocurrency.
Bitcoin is the first successfulcryptocurrency. While it is yet to be accepted as a favorableform of money, Bitcoin has its own advantages anddisadvantages. There are other crypto currencies which aregradually being introduced as well but their success is yet to benotable.