The History of Money – since the beginning until now (crypto)

The history of money is as old as the history of mankind itself, it is also just as mysterious. When it comes to the history of money, a few questions come to mind. Questions like: When was this means of payment invented and who invented it? We wonder how such an invention came about that changed the face of the entire planet.

Money was not from the beginning the perfect means of transaction it is today. It did not begin as paper money that could be withdrawn from an ATM or bank to make purchases at the supermarket. It was not always so available and transactions were not always so easy. Today’s monetary system is the result of thousands of years of evolution of money that was constantly evolving. There was a time when money was not exactly a means of transaction or a government-issued paper, but if there is one thing we know for sure, it is that money has always been a part of human history.

The history of money
First, let’s be clear about what money is in the first place. Money is simply a means of transaction used to exchange goods and services. The value of money does not come from the material itself, but is based on an external value assigned to it by the government. Some types of money, such as coins, had some intrinsic value in the past – but that is no longer the case today.

Before the invention of the monetary system, the barter system was prevalent in most parts of the world, where people exchanged goods for goods and services for services. As you would expect, this caused a lot of problems for society because of the imbalances in value. More than 5000 years ago in Mesopotamia, the shekel was invented and is considered the earliest form of currency created.

For a time, the shekel prevailed until 1000 BC when the first metal money was created in China. These were minted bronze and copper coins issued by the government. These coins served as a means of transaction for a time and were even used to pay armies in wars. Other varieties of coins such as gold and silver coins were found later in ancient Greece around 650 BC. These coins were minted with the faces of gods or emperors and were used as a means of payment based on the number of coins rather than weight.

Around 800 AD, the penny was issued by Charlemagne. It was made of silver and became the standard coin in Western Europe for over 500 years. However, by the mid-13th century, the terms shilling and pound were used to describe pennies in large quantities. Over time, coins were no longer sufficient and paper money was invented.

The first paper money was invented in China around 700 to 800 AD, but it was not in general use until 1455. The use of paper money led to the so-called currency wars, in which heads of state devalued their countries’ currencies so that people would use money more and their economies would be boosted. Eventually, this led to the creation of banks.

The establishment of banks helped revolutionize the monetary system and international trade. Modern banking systems have helped change the way transactions are conducted – from credit cards to debit cards to wire transfers.

Digital (crypto)currencies
Money has come a long way, and with the invention of cryptocurrencies like Bitcoin and Ethereum, money has changed once again. Bitcoin was created in 2008 by an anonymous founder named Satoshi Nakamoto and people started using it in 2009

Cryptocurrencies have the potential to change the monetary system, and it’s only a matter of time before we see their economic impact on the world stage.

Translated with www.DeepL.com/Translator (free version)