History of money

History of Money💰 | history of money

1. Basic Human Need

Trade has always been present in our lives, as it is essential to our food chain, and probably never will. When you take a closer look at the basic human needs for survival, you quickly realize that the three most important needs are:

• Air • Water • Meal

Because air and water can be found for free in many places, and we will talk about food in detail later.

2. Food exchange

Food Exchange in Ancient History

Food exchange

Food has been recognized as one of the earliest human needs for survival since early ages. Therefore, we have come to understand that food has tremendous value. Like anything else that has value, it became part of a global trade chain, and was one of the first early payment methods among humans in exchange for particular goods or services.

Because food has always helped for basic survival, it was one of the best payment methods for an extended period of time. In fact, there exist many places in the world that still use this approach. As civilization progressed, especially with more developed villages and cities, payment methods began to change. At that time we had no freezer, or fridge, and used to pay for food items.

If the exotic fruit or any meat went to waste, it would have caused many problems.

So this problem had to be solved. The solution was a new type of payment method, something that doesn't rot or waste easily. However, it had to be exchangeable for food or any other goods or services.

3. Precious Metal

Precious Metal

Precious metal

Precious metals Shiny metals were introduced to the world as a new payment method, and were silver or gold. Of course, most people didn't like the idea at first. Nevertheless, it was implemented, and gradually it was widely abandoned. It was exchangeable for foodstuffs, and other goods or services and that was really revolutionary, and even today, when you look at the prices of silver or gold, they continue to rise.

Humans have realized that the process of excavating gold and silver from the ground is becoming very difficult. Therefore, the precious metal as the major payment currency had to be discontinued.

4. Paper Currency

Paper Currency

The introduction of paper money seemed ridiculous, because as humans, we are uncomfortable with change and we hesitate to adapt to anything that we don't understand, at least at first.

After some time, in almost every country of the world, all types of paper money were implemented in a centralized form.

The new payment method of paper currency was alive and booming around the world. I mean paper money is fine, but we can mention countless countries where paper money has repeatedly failed due to depreciation in the long run.

The decline in the value of paper currency has other roots as well, such as the rise of easily counterfeit paper currency on a large scale. Additionally, like anything in the world, we have learned that goods with limited supply tend to increase in value, especially over the long term.
However, the opposite happens when paper currency continues to be printed, reducing in value. When it comes to paper money, it is a fascinating subject.

The fact that we have learned on various occasions that paper currency is a failure, we keep re-inventing new ones. We are sure, this time it will be successful.

Look at the example of the euro which has taken over currencies such as:
• German Mark • Austrian Schilling • Italian Lira • Spanish Peseta • Slovak Koruna • Maltese Lira • Dutch Guilder • Finnish Marka • French Franc • Greek Drama and much more (with more to come).
It appears that paper money is still going to exist for some time.

5. Swift Society

Swift Society

The SWIFT Society for Worldwide Interbank Financial Telecommunication began in 1973, and this newly created network has now enabled all financial institutions around the world to transfer secure financial transactions in a trusted environment.

This idea, again, was truly revolutionary. It is very useful to have internet access to make payments, not to mention that it is very comfortable to use contactless cards nowadays.

The speed of implementation becomes very fast when making payments. When you are viewing an international bank transaction it can take 3-5 days, but you can do it anywhere using your laptop at your home or on your mobile device.

However, at first - when it was introduced - it seemed exotic and most people didn't believe it would ever work.

Slowly, we've learned that some payments can be automated: such as paying your bills or a service you've subscribed for, and of course, most large companies now pay all their employees via bank transfer. Is doing. Well, there are still many companies that pay cash to their employees, Because they don't want to pay taxes.

These companies prefer to remain anonymous rather than share all their assets with banks for various reasons.

As always, people had to adapt. The idea that all your money is contained on one piece of plastic card was daunting.

The world of payments has changed again. Centralized banks have expanded, and they have offered many different systems that one can choose from.

Some of the most well-known virtual payment methods are: • Visa Debit • Credit Cards • Debit Cards • ATM Machines Due to the dot-com boom and the Internet revolution, other digital payment methods were introduced by various third-party companies, in turn. Providing additional secure transactions for a special fee.

Although high priced, we have now reached the point of enabling international operations with people or companies we never need to talk to or see.

even if we have a problem trusting a business or particular stuff; We may still proceed to transact, due to third parties who guarantee that payment will be completed only when the Goods arrive as described.

For example, you pay for an individual product using PayPal, simply because you know that, in the worst case, you can ask for a refund and PayPal will help you—make sure if the goods or If the services are not there you will get your money back. As you described when ordering.

Such well-known centralized financial systems are:

• PayPal • Payoneer • Alipay • eCash • M-Money and much more,

6. Digital Currency

Digital Currency

Digital currency

Digital Currency A new currency was introduced in 2008, but this time it was very different. It was the first digital currency, called bitcoin. It was not introduced by any well-known company or bank, nor by any government, but in the form of a software-running on a protocol called Blockchain. As always, not many people were initially interested in adopting it; They did not understand its purpose. Some research may be needed to understand this. We know that cash works and many other currencies exist.

When it comes to making payments we can pay using our bank cards and many other options – so why bother, right? Well, Bitcoin was the first digital currency that was introduced.

However, as of June 2017, more than 730 different types of digital currencies exist. The reality is that although some people may have heard of cryptocurrencies, they never bothered to examine the possibilities as to how much it could lead to, and further it will shape our future.

What I am trying to tell you is that when you look back in time and analyze the history of financial institutions, you can realize that the form of payment has shrunk significantly from their material value.

They not only get smaller, lighter or thinner, but more virtualized, and now we, the people, don't even need to create them – because digital currencies operate on our current internet (interconnected network).