The evolution of money
We’ve all had our fair share of dreaded subjects at school, ones we absolutely hated hearing about. Whether it was physics, math, or history, the majority of us kept our eyes glued to our wristwatches or the giant clock on the wall, waiting for the class to be over and done with. But we can’t deny that every subject bears critical information, particularly history — which traces all the events that have led to our current living habits.
The history of money is quite important, but unfortunately overlooked. Like, did you know that bartering was the earliest form of money? It’s even used today!
Get ready for a history lesson , folks. It’s not about world war 1 or 2, so we promise you that boredom is out the window for this one.
The barter system
Back in 6,000 BC when money didn’t exist, the bartering system was the only mode of exchange. It involved trading one good for the other among Mesopotamian tribes and the Phoenicians. For example, if you existed back then and had apples but were in need of oranges, all you had to do was look for the ones who had oranges and were in need of apples. Simple as that!
Applying this to modern-day scenarios, many people offer their services in exchange for another . We thoroughly recall a teacher once offering our writer free singing lessons in exchange for her aid in copywriting the singing academy’s website!
The transitions into money
Coins: A huge milestone in the history of money, coins became the focal point that drove exchange away from barter towards bronze and copper metals sometime around 770 B.C. in China. The Chinese wanted to create a tangible and valuable means of exchange, and after much deliberation, they created the circular coins — easily pocketed and exchanged — further opening the door to advancement.
Paper Money: To avoid being boring and taking you back to ninth grade History class, we’ll skip ahead and cut to the chase. After some time, the Chinese kept on using coins but decided to create paper money. Even though it took some time for the market to warm up to them, they were later on accepted as a valid means of exchange. Did you know that these modest forms of cash started a whole war? That’s right! A currency war erupted between leaders of the world as they tried to devalue other nations’ currencies and stimulate their own economies.
Modern-Day Money: Getting right into the good stuff; money has tremendously evolved! While we do still use coins, like the American have their cents, and we also use paper money — such as the Jordanian Dinar, the widely agreed upon euro, the dollar, etc. — money has progressed and became more than just a tangible resource.
Today we have a multitude of cards at our disposal, cryptocurrencies, digital and cashless payments, and while we don’t always see or feel the money, it’s still a valuable means of exchange.
Bottom line?
While money has tremendously developed over the years, and we are yet to know its future course, it remains to this day an important means of exchange with pivotal impact on the way we go with our lives and do business. Which is why, it’s important to know the right way to manage it!
The key to financial success is understanding the value and history of your money. Now that you have an insight into how those currencies came to be, we hope you manage to find ways to manage your money well, whether that be through saving, investing, or simply spending in a much smarter and calculated way. And we also hope you managed to keep your eyes open throughout this brief history lesson!
