The Origin of Money
From Clay to Gold to Paper to Crypto, the story of the single greatest unifier in human history!
Do you remember your very first memory of money? Your first realization of the magical power of an otherwise normal-looking paper that could buy you chocolates, food, and toys? When I was a kid, money just felt like some natural construct that was part of the world, something that was always out there in existence, just like trees, rocks, and rivers.
But as you grow older, you soon realize that money is a human construct. So, it is really fascinating to wonder how we humans ended up with these magical pieces of paper. In fact, it is not even a piece of paper now, as money has become virtual. About 98 percent of the transaction of money worldwide takes place without any paper involved. That way, it is even more fascinating to understand how we humans ended up with this virtual mystical ‘thing’ called Money.
But before going to its origin, let us first talk about the different roles of money. Money first acts as the medium of exchange. That is, for your 10 dollars note, you get a couple of notebooks. Money also acts as the unit of transaction. That is, for an extra 5 on top of 10, you get one more notebook. And finally, money acts as the medium for the storage of value. Be it houses, stocks, or even golds, we usually value things in terms of money, like a house…
