Money owner would receive a sum of gold on

Money is a
peculiar thing. Small pieces of metal and paper exchanged between people around
the world. It can be traded for anything from food and clothes to a pillowcase
with an image of Nicholas Cage on it. In recent times we don’t even need
anything physical at all, because money has become strings of code that
constantly circle the globe. “How did this happen?” you might be asking. Well…
to find that out we are going to need to take a look at the evolution of money!

 

Thousands of
years ago, in ancient times, way before money existed Humans relied on an old
outdated system called barter. If you were a farmer, for example, you could
either trade your left over crops for clothes from a tailor, or beer from the
local brewery. Depending on where your priorities are! However the problem with
this form of exchange is that the items that were being traded had to be of
similar value. You couldn’t for example trade a mango for a brand new wagon.
This made bartering quite difficult as both members had to agree upon the value
of the items that they were going to trade. It also became quite difficult to
carry all sorts of tradeable items all over the place. Eventually we humans
worked a way around that problem and started carrying around little tokens that
represented the items that we were willing to trade. Soon these tokens were
turned into round circles that were able to represent anything, and that’s how
the first form of coins came about. Some of the first recorded coins were
created in Lydia, which is now called Turkey, and were made out of a mixture of
gold and silver.

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About a
thousand years later at 700 AD, paper money was invented by the Chinese just
after they had developed something called wood block printing. They used to
call it flying cash, because it had a habit of being blown away in the wind.
When Marco Polo visited China he learnt about this and brought the idea of
paper money back to Europe, where they were still using metal coins to serve as
money. However despite this, paper money wouldn’t see widespread use in the
west until much later when banks started issuing notes that guaranteed the
owner would receive a sum of gold on demand. Merchants then found that it was a
lot easier to trade those notes with each other rather than lugging around huge
amounts gold.

 

In 1946 the
world’s first credit card, creatively named the ChargeIt was introduced. It was
fairly limited compared to modern credit cards but it proved to be such a
useful idea that it lead to the creation of most of the modern credit cards
that you find today. Finally after a very long time money entered the digital
age, and ATM’s, personal ID numbers, and debits cards were introduced to the
world. As more and more people began using the World Wide Web, electronic money
services started to emerge which gave people an option other than the regular
banks.

 

Recently a
new phenomenon has emerged called cryptocurrency, or you may know it better as
Bitcoin! It is the first form of truly digital money, and has been designed for
the era of information. It solves many of the disadvantages of physical and
electronic money such as, the fact that Bitcoin is accepted all over the world,
whereas currency is only recognized in the country that it was issued. Bitcoin
is the first scarce digital resource to have ever existed, and by its design
there will never be more than 21 Million Bitcoins in circulation. This type of
currency is decentralized which means that it is stored across the entire
internet and is not controlled by anyone or any country.

 

So, it seems
we’ve come quite a long way from exchanging goats for wood. While they once
dominated, banks are becoming increasingly less important in our daily lives. Humans
started with a cashless society, and with the rise of cryptocurrencies, cash is
falling once again. In the next couple of decades we may witness an incredible transformation,
where we abandon the gold standard entirely after 5000 years and replace it
with Bitcoin. If this occurs it could be the single largest transfer of wealth
in the history of our civilization, as well as the biggest advancement in money
over the last 100 years.