By its definition, money is commonly used as a medium of exchange to gain goods and services. Over the years, this concept has evolved numerous times, and it represents one of the most valuable assets to survive in the modern era.
Without money, we cannot attain the majority of the necessary goods and services to live. Almost everything in our daily lives is tied to a measurement of monetary value, whether it is the clothes on our backs or the food we eat. Additionally, we use this medium to attain services, such as education, healthcare, and many other things.
Money has played a part in our society for several centuries and has evolved in various forms. However, before this concept came into play, our ancestors made use of a system called barter.
Historians state that the concept of bartering began on a system that exchanged goods and services for other goods and services. People would trade items such as clothing, weapons, food, trinkets, and livestock for other similar items.
Over time, the system was considered flawed because there was no standard measure of value for the goods that were being exchanged. It also implied that people could easily take advantage of this system, leaving those with worthless items unable to trade.
Historians state that the concept of money was first used as early as 5,000 B.C. when the Lydians became known as the first westerners to develop and use coins. China and Europe were also believed to be the first societies to use a system similar to modern-day currency.
Soon after, many other countries quickly followed and began developing their monetary system until it evolved into what we know today. Paper currency and coins rapidly became the main objects used for transactions which triggered the emergence of banks where large amounts of money can be stored.
The evolution of money, however, does not stop there. Thanks to the advancement of technology, we have also taken the concept of money and successfully adapted it onto digital platforms.
Developers introduced the concept through mobile payments where people could access their bank accounts and make their transactions online through smartphones and computers. Additionally, it allowed individuals to carry large amounts of money without the risk of being stolen.
The concept also brought to life the use of digital currency and cryptocurrency into popularity among many people. Digital payments became popular due to their convenience and security. It is also now one of the most popular methods used in transacting with another party.
Money has also made a significant impact on our society, as well as the economy. When the supply of money increases, the interest rates of the economy decrease. When this happens, it implies that higher consumption rates can be correlated to the total output of the economy. It can also significantly change the value of goods and services and the currency we use due to inflation.
To know more about money and its history, take a look at the infographic below.
