How long has there been money? The history of the currency
In this article we will explain how long money has been around and what the history of the currency looks like. Money is the most common means of doing barter deals. Therefore, it had an important place early in the history of our civilization.
History of money - that's why money was introduced
- Before there was money, bartering was done in a classic way. So one object was always exchanged for another. For example, pottery against food.
- This type of barter is a big problem. If, for example, nobody wants to exchange your pottery for food, you have to go hungry. So there had to be a suitable trading partner for every trade.
- This is exactly why money was invented. With money, barter transactions suddenly became much more flexible, because it was accepted everywhere and by everyone.
- So you would no longer have the problem in the scenario of not finding a suitable trading partner. You could simply sell your pottery for money and then use it to buy food.
History of money - an overview
- The oldest metal money was discovered in Mesopotamia, today's Iraq and Syria. There the Sumerians used silver to pay for everyday objects as early as 2000 BC.
- Between 700 and 500 BC, several peoples independently developed small objects made of iron, bronze and other materials. For example, these were in the form of small metal bars, axes or sculptures such as dolphins.
- Only the Lyder who lived in western Turkey made small metal disks in 650 BC. These were of different weights and had a stamp that confirmed the authenticity and value.
- Coin money was then refined over the next few centuries until the first paper money was introduced in China in the 11th century. Originally this was intended as a replacement for coins and not as an addition.
- Book money was first used in Italy in the 14th century. It existed in the form of checks that could be cashed in at banks. At the time, this made payment transactions significantly more efficient and secure.
- Electronic money was introduced in the 20th century. It's actually just an evolution of book money, but it fundamentally changed the way we use money every day.
- The 21st century will show whether technologies such as cryptocurrencies will prevail. These could completely change our understanding of money again.
