Importance on money

What is Money? Interestingly enough, money often has

no intrinsic value. Instead, money is an
object that has a value placed on it ,
which allows for the trade of goods
and services. Some money ,such as
metal coins, has actual value in terms
of the materials used. However, paper
money is more common in the modern
world and typically has no real value.
Throughout the evolution of money,
currency has taken several different
forms.
What was used before When there was no currency, people
money invented? traded goods and services for what
they needed. One farmer might trade
livestock for vegetables, while another
may trade labor or lumber for livestock.
These transactions were the early
building blocks of our modern
economy and would go on to create
the future of money, the world knows
today
History of The history of bartering dates all the
way back to 6000 B.C. when
Bartering Mesopotamian tribes introduced the
concept to the Phoenicians. Goods
were exchanged for each other in the
absence of money , including things
like tea, salt, weapons and food. As
time went on , bartering continued to
evolve,with Colonial Americans trading
pelts, crops and muskets.
First Metal Money The first metal money dates back to
1000 B.C China. These coins were
Coins made from stamped pieces of valuable
metal , such as bronze and copper.
Early iterations of coins were also used
by ancient Greeks, starting around 650
B.C.
Over time , these coins would evolve to
be made from the silver and gold we
associate with money today. Coins
were a huge milestone in the history of
money because they were one of the
first currencies that allowed people to
pay by count (number of coins ) rather
than weight.
Early Coins Throughout history, there have been lots of
different coins used in different regions.In
about 500B.C , the first round coins were
created and stamped with gods and
emperors for authenticity. In 800AD,
Charlemagne issued the silver penny, which
was the standard coin in Western Europe
from 794 to 1200 A.D.

By the mid- 13th century, the shilling and

pound became widely used to describe larger
amounts of pennies. As the value of currency
has changed over the years, the creation of
larger forms of currency has been an
important part of the history of money.
First Paper Money While the first paper money was created
in China in 700 to 800A.D , it would be a
long time before paper currency was
commonly used.According to
Brittanica.com, the first country to use
paper money was China , but it was only
used until about 1455. The lighter weight
of paper money allowed for international
trade, which created both problems
distrust and currency wars and
opportunities the ability to trade in new
places for new goods.
Bills of Exchange Eventually, bills of exchange became a
common part of the world economy. A
bill of exchange is essentially a written
order that one person or group will pay a
specified amount of money on demand.
A bill of exchange can be used to settle
an account in international trade, which
was one of the early uses of this order.
 The creation of paper money would
Currency Wars eventually lead to currency wars, which
occur when leaders of different nations
attempt to devalue their own currency.
In turn, this increases demand and
helps stimulate their economy. While
this still occurs in today’s foreign
exchange market , the signature of a
currency war is the fact that several
nations are involved in the devaluing of
other nations currencies. However,
currency wars can have negative
consequences for the countries
involved,including currency volatility.
The Introduction of The first banks were started by the
Roman Empire around 1800 B.C. These
Banks banks offered loans and accepted
deposits from individuals, but would later
disappear with the collapse of the
empire. By the turn of the 19th century ,
banks had become respectable
organizations within commuities and
learned the concept of fractional reserve
banking. Since individuals banks learned
that they could loan more money than
they actually had, which was a huge step
in the history of money.
The Gold Standard In 1816, gold was made the standard of
value in the country of England. What this
means is that each banknote represented a
certain amount of gold, so only a limited
number of banknotes can be printed. This
gave previously unbacked currency some
semblance of value and stability. By 1900,
the United States had followed suit with the
Gold Standard Act . While this would lead to
U.S establishin the central bank that plays
an important role in the economy today, the
Gold Standard ended in the 1930s due to
the Depression and the devaluation of gold.
Modern Day Money Now that you have a better
understandin of the history of the
history of currency, lets take a look
at how its used today.
Today, money has taken the form of
everything from the U.S dollar to
cryptocurrencies like Bitcoin.
Thanks to the creation of modern-
day money, buying,selling and
trading is easier than its ever been .