Evolution of Money

Evolution of Money

The invention of money can be said to be one of the greatest inventions of civilization. Money is a system created to enhance the effectiveness of trading. That is, money is essentially the solution offered to the problem of barters' inadequacies. Not only this, the advent of money consequently gave birth to the idea of banking and even economics as we have it now.

Money has evolved over time and will definitely continue to evolve. The concept of money in the world system has passed through a series of stages. Money in the primitive age is different from money in this modern age.

However, money serves the same purpose both in the primitive age and the modern - a medium of exchange.

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What is Money?

Money is anything that is generally acceptable, serves as a medium of exchange, and can be used for debt settlement. This is the most commonly used definition of money in Economics. It as well gives you an idea of the major characteristic of money - It is generally acceptable.

More so, money acting as a medium of exchange means it can be used to facilitate trades. Trade is done in connection with money, either directly or indirectly. When money isn't involved, then there is debt, of which money is as well needed to make a settlement.

Simply put, money is the basis of trades and value exchange. Nonetheless, there are other functions of money which we may probably explore later.

The primitive Mans' System of Trade

The prevalent occupations of the primitive men was farming and hunting. In some cases, there may be people who engage in other activities too. However, the essence of their activities was to ensure survival.

As time went by, there was a need to meet other needs too. Also, due to factors like; difficulties in storing and keeping things of value; natural limitation of each man. There was a need to come up with a system of exchange. Hence, the idea of Trade By Barter.

Trade by barter is also known as the Barter system. This system involves the meeting of two people essentially to exchange commodities. For example, a hunter that needs yam will look for a farmer that needs meat. The two can now exchange their different goods for the sake of meeting one another's needs.

History has it that, between 8000 BC and 6000 BC, the batter system of trade became prevalent among Greece, the Middle East, Asia, and Africa. However, there were a lot of limitations attached to this primitive system of trade.

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One of the inadequacy of the system is lack of central measurement for commodities. There is no specific value for goods being exchanged. Likewise, shortage of people willing to exchange at the same time a person is willing. There was therefore a need to come up with a better system of trade.

The involvement of a great number of people and communities in the batter system of trade gave birth to market systems. As a result of this, it became important to come up with a fair system of exchange. Hence, the innovation of money.

Conclusion

The evolution of money can be traced to the barter system of trade. The need for money is seen as a result of the inadequacies attached to the trade by barter. There is much more to explore about the advent of money. In the next topic we will dive further into the evolution of money.


References

Wikipedia - History of money
Your Article Library - The history of money

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Comments

aliwa 14 Apr '21
Next post pls
olawale100001 14 Apr '21
Crestway our way
dominion 14 Apr '21
It is trite to state that despite the modern form of exchange (money) barter trading ???? is still on
ajuluchukwu 14 Apr '21
Crestway surest way
chosenboy 14 Apr '21
This is Nice
ayakaterver01 14 Apr '21
Crestway trade is the light of the dawn
thesecondson 14 Apr '21
Money is the beginning of civilization
idowu_omohu0001 13 Apr '21
Great article
ijebs 13 Apr '21
Crestway done evolve my money oh...
olanite11 13 Apr '21
Nice article very good
johnagha 13 Apr '21
Good article
saunobele 13 Apr '21
That is good one
ogbeblack 13 Apr '21
Very innovative!
adesegun 13 Apr '21
I love Crestway trade....the best platform in the world..
adebiyi 13 Apr '21
Nice article
ishola1706 13 Apr '21
Super good
ishola1706 13 Apr '21
Super good
ishola1706 13 Apr '21
Super good
augustinemiracle 13 Apr '21
what if we were still using trade by barter?
jonathanchama 13 Apr '21
Educative!!
jstar 13 Apr '21
The monetarist
dareakins 13 Apr '21
Fantastic piece there
bolsey01 13 Apr '21
Value equals money
olaknight 13 Apr '21
Oppression
vychthur 13 Apr '21
Basis for trade and value exchange
amodumujeeb 13 Apr '21
Thank you for refreshing my memory. Money does virtually everything in life.
umoh 13 Apr '21
Best crestway trade
julies 13 Apr '21
Money is everything
ajuluchukwu 13 Apr '21
Crestway surest way
maceke 13 Apr '21
The era of trade by barter was so tressful. Thanks for the introduction of money.
samsono 13 Apr '21
Brilliant article we got today.. This money is really acceptable and the system that runs the cosmos of the world now.. Bless you Crestway????
leemah 13 Apr '21
Nice one crestway
jwealth 13 Apr '21
Money na anything we fit use catch cruise jire
bimak 13 Apr '21
Nostalgic
chosenboy 13 Apr '21
This is Great
faitty 13 Apr '21
This article refreshed my memory of secondary school. Money is what money can buy. D various qualities of money such as durability, must be generally acceptable etc. Thanks crestway more grease to ur elbow. The sky is ur starting point
missgenius 13 Apr '21
Nice piece
tosyn 13 Apr '21
Flash back to secondary school, hmmm. Nice article
ayotunde 13 Apr '21
Money is good..
evedyne 13 Apr '21
Nice article very educative
enipeace 13 Apr '21
Very educative.
bolurepublic 13 Apr '21
Amazing article...
fagbohun 13 Apr '21
Very interesting article.
kenhinde 13 Apr '21
This is amazing and educative.
aliwa 13 Apr '21
Biko I need money
omolejerome 13 Apr '21
Evolution of money... Educative post.
oladiti 13 Apr '21
Educative article . thumbs up
ruqyatu 13 Apr '21
Crestway weldone
ruqyatu 13 Apr '21
Crestway weldone
michael95 13 Apr '21
Educative post!
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