History of money: Money is a form of transaction and a representation of wealth. It turns out that the current type of currency differs from the payment options that were available in the past. The history of money in the globe will therefore be discussed here.
Up until the advent of digital money, the money system was derived from the barter system. It is undoubtedly a long route to reach digital currency. You should be aware of the entire history of the world's currency.
A barter system is what?
The barter system marks the beginning of the evolution of money. A method of exchange known as barter involves exchanging products for other things, services for other services, or goods for services in order to satisfy requirements.
The demand was growing at the time, although people in the past understood they required other people to meet their wants. The barter system is very useful for those who are unfamiliar with money.
The two parties swapping the items must need each other's goods in order for bartering to take place. For instance, someone traded chicken for his rice from a neighbor who required chicken.
This barter system was eventually employed over time. Bargaining, though, is not always a wise course of action. The reason was that people at the time started to realize the drawbacks of bartering, such as the challenge of finding people who had the same needs as the goods to be exchanged, the difficulty of maintaining the quality of the goods, such as perishable fruit, and the necessity of carrying goods to remote locations.
The advent of goods money was the first indication of the history of money in the world.
The ancients eventually considered constructing valuable goods that were used as money after seeing how difficult it was to operate a barter system. These things, including gold, jewelry, metals, salt, animals, and others, are of course well-known in general.
Salt was used during the early Roman era. To barter for items and to pay construction workers' wages, salt was used. In the Arab world, however, camels and goats are utilized as currency. Another illustration is the Tibetans, who exchange tea for cash.
Since there are various documents, it is actually unknown with certainty when the goods money started to be used. Regardless, his presence has had a significant impact on how money is used and the subsequent advancement.
The problem with the money for items also led to the development. The main issue is that it is difficult to transport significant amounts of money for items to remote locations, and some commodities are also easily damaged.
Coins start to appear
Coins eventually developed from the brittleness of goods money. It is not random that silver and gold are used to manufacture coins.
Coins were chosen because to their many benefits, including their portability, ease of manufacture due to readily available materials, and most crucially, their resistance to damage.
Additionally, because they reflect the worth of money, the use of silver and gold is also regarded as suitable. Gold and silver have long been regarded as precious commodities with high worth.
Ancient people used to entrust goldsmiths with the security of their gold and silver coins, even trusted religious leaders.
A letter detailing the owner of the funds and their value was created as proof of ownership. This ownership evidence will eventually become paper money.
read also: The history of the emergence of coins
The Emergence of Paper money
With the introduction of paper money, the history of money in the world has continued. The same convenience with coins is the source of this money. Coin production is simpler than even producing paper money.
Paper money has replaced coins as the kind of currency in use today. It might not initially be as much as coins, but eventually there will be considerably more paper money available.
Paper money cannot, however, be printed by anyone. The central bank now controls and regulates the printing of money in order to keep it stable.
Banknotes must be folded carefully since they are easily destroyed, which is another disadvantage. Given that it is flammable, it should not be used near a fire.
Read also: The History Of Paper Money : The First Banknotes
The Emergence of Digital Currency
People now use digital money in addition to paper money, which is a common practice. Through an application that offers a server as a storage space, this money can be accessible.
Users must make a transfer on the app first before they may utilize it as a form of payment. After that, you can use it for a variety of things, including paying for groceries, paying bills, paying for transportation, and more.
It is anticipated that digital currency will eventually take the place of paper money. But given that digital currency must be accessed over the internet, it doesn't seem to be going to be simple. People will continue to utilize paper money since Indonesians do not all have access to the internet at the same time.
However, the existence of digital money should be praised because it has accelerated human mobility. Activities that were formerly challenging, including paying bills on a regular basis, are now made simpler by the usage of digital money transactions.
Read also : History Of Digital Currency And Types Of Digital Currency
Conclusion
From barter to digital money, it is the history of money in the globe. What further forms of currency will emerge? The key thing is that the newest form of money can perhaps have a positive impact on people's lives, even though that is not yet understood.
FAQ
1. What drawbacks are there to bartering?
Due to its disadvantages, barter is rarely employed.
Goods traded are frequently not worth their value.
Especially for large products and lengthy distances, bartering goods delivery might be a challenge.
Calculating an item's value and dividing it into smaller quantities is challenging.
2. Who made money?
During his time in Greece (560–546 BC), Croesus discovered coins that are still relevant today. The Greeks are credited with creating the first currency in history.
3. When was the first use of money made?
In this universe, money first appeared between 560 and 546 BC. King Croesus, who ruled over the region from Greece to Turkey at the period, created coins to support various business activities. Other governments adopted the money he discovered and dispersed it around the globe.