Hello my dear serey's friend how are you? I am sure you all are good and already enjoying your life with good health as well as good wealth. Everybody needs money and he always trying to invent different ways of money. Did you ever try to know when this money was invented and today what we are using as a money what was the oldest farm of this modernized cash.
Today I am going to tell you about different stages of money. Money has different stages and here I am going to explain these different stages.
What is money?
This is a common definition of money, a commodity accepted by general consent as a medium of economic exchange. It is the medium in which prices and values are expressed; as Currency, it circulates anonymously from person to person and country to country. We are living in a very modern and digital age, Now I am going to explain different types of money.
Barter System
In very old days about prior to 2000BC man was living in forests and the food was his single necessity. He mostly get his food by hunting. Meat was their favorite food because there were no other things available for eat. with the passage of time man cultivated different kind of crops like wheat rice etc. But still they were living in forests, caves. Some people became formers and other remain hunter. Now they start to exchange things among themselves. For example if man needs some meat he gave some quantity of wheat and took meat from other person. This was the early stages of money. There were no concept of money at this time. They only exchange things between them.
Concept of Physical money
In barter system many people got benefit and others remain in loss. For example if a hunter needs wheat he gave meat to the farmer but as we know that meat may become useless after some time while wheat will become useable for the most of time. So people introduced the alternated way of barter system. The most often quoted example of primitive money is shells - in Africa cowries and wampum in America. The small cowrie shell, deriving from the Maldive Islands in the Indian Ocean, is a treasured item in the civilizations of China and India from very early times. From India these attractive objects are carried along the trade routes to Africa. Similarly the American Indians use a small white cylindrical shell for ceremonial gifts, embroidered on to decorated belts or other ornaments. Now they start to giving some solid things while trading or selling and buying process. For example they fixed some quantity of meat is equal to a shell or others things. With the passage of time another developement made by them is to introduce gold insted of shell etc. The earliest currency used in commercial transactions appears in Egypt and Mesopotamia by the third millennium BC. It consists of gold bars which need to be weighed to establish their value each time they are exchanged. Later they are supplemented by gold rings for smaller sums. In about 2500 BC an extensive trade, at elba in modern Syria, is based on currency of this kind in silver and gold. So now this type of currency becomes portable and now this was the real path to the modern money where we are today.
Paper Money
As man always remain in the search of better to better so paper money came into after several procedure and several stages. Paper money introduced in trading. People got paper Notes issued by Government and they used this currency while buying and selling their good and crops. With the passage of time Paper money reshaped in different types and become very popular among the traders.
Banking System
The idea of banks began as long ago as 1,800 BC in Babylon. In those days moneylenders made loans to people. In Greece and Rome banks made loans and accepted deposits. They also changed money. (In the Bible Jesus famously drove the money changers out of the temple in Jerusalem).
However, with the collapse of the Roman Empire trade slumped and banks temporarily vanished. However, banking began to revive again in the 12th and 13th centuries in the Italian towns of Florence and Genoa.
Banks starts to working in England in 17th Centuary. People started to deposit their money with goldsmiths for safety. They deposited their gold to goldsmiths and they issued a note to the person against his gold. The bearer of this note always have the right to receive his gold by showing this paper note. People were starting to giving and taking these paper notes among themselves instead of gold. Goldsmiths later introduced interest sytem and then began to start interest system to charm other customers.
However at the end of the 17th century the cost of fighting a war with France was colossal. So in 1694, the Bank of England was founded to provide a loan to the government.
A group of financiers joined together to provide the money required to set up the bank and loan the government 1.2 million pounds (a massive sum in those days). In return, the bank received an 8% interest on the loan and the right to issue notes. The Bank of England was also allowed to lend money and to buy and sell gold.
The Bank of England n In 1946 the Bank of England was finally nationalized. Also in 1946, the International Bank for Reconstruction and Development (otherwise known as the World Bank) was formed.
Now in modern age as the world becomes as a global village and banking sytem is in its modern age. Day by day new techniques are introducing in the field of banking system.
Digital money
Now with the passage of time different companies came into and some banks introduced different types of cards like debit and credit cards. ATM's were introduced to facilitae these cards and later swap option is also introduced. This card system made exchange of currency very simple and safer. Many other trading companies take a very important role while introducing and spreading knowledge of these cards money. They gave big discounts and deals by using cards money.
Mobile Banking
Recently Mobile banking introduced and now it is very easy to transfer money. People can get and receive money in seconds. People have cash now in their mobiles.
Decenterlize Money.
In year 2008 the great man Satoshi Nakamoto started his first bitcoin protocol and then finaly launched the newowrk in 2009. Nakamoto was responsible for creating the majority of the official bitcoin software and was active in making modifications and posting technical information on the bitcoin forum.
Nobody knows at that the value of this digital money may increase by 10000%. Some people laughs on Nakamoto project and they even think he is a mad and this whole system is just a joke but now in this world time proves that the idea behind introduced bitcoin was so powerful and now whole world is going to legalized this currency in their countries.
With the passage of time different kinds of other coins came into and become very famous. But bitcoin is still the King of this crypto currency.
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Have a very nice day.
Decentralised money all the way