The History and Evolution of Money: From Barter to Cryptocurrency

The History and Evolution of Money From Barter to Cryptocurrency
The History and Evolution of Money From Barter to Cryptocurrency

The history and evolution of money could be traced back as far as ten thousand years back. It’s, however, impossible for humans to exist alone without interaction with another human. These interactions are in different forms, and while some include exchange by barter, some have to do with money. Before now, the evolution of money came up when trading became an integral part of man’s life. Trading in the early years is by barter, which involves exchanging goods or commodities for other immediate needs. So, peradventure, you have a commodity, majorly one you won’t be having a use for in the next couple of days; you could exchange it with a willing individual. Hence, trade by barter.

Nonetheless, as time progresses, evolution took place, and the need for legal tender arises. Since barter had various demerits such as lack of regulation for contract breach, wants becoming coincidental, and the indivisibility of some unique goods or services. These problems became much difficult to manage as time passed, hence the need for a legal tender that everybody would generally accept in exchange for goods and services rendered.

History of money

Although the history of money could be said to have started with the barter system, no actual money was spent during this period. Here is the history of money, and it started thus;

● Commodity money:

One of the main reasons for the development of commodity money is because it came with uniformity. With commodity money, most of the problems with trade by barter became very easy to solve. Several commodities in different countries were generally regarded as a commodity fit for exchange. So, it became pertinent for some people to keep salt in their homes for transactions that might arise at any time. In a nutshell, it is worth it to be regarded as money inasmuch as the people are willing to see it as a legal tender. However, commodity money incurred its disadvantages and soon became a problem. The need for a more efficient means of exchange rose, and that birthed metallic money.

● Metallic money:

Before you buy Vechain, do you know money used to be in metallic form? You’d probably be shocked to the marrow if it’s your first time hearing this. Since commodity money began having issues regarding the difficulty in transportation, becoming unrealistic in the mode of its transportation and storage difficulties, metallic money came to life. Metal ores were found and used in making metallic money since metals are generally durable, fungible and homogeneous. Since metals are scarce and could be tested for durability, they became universally acceptable. Metallic money is made into coins of different sizes and values. However, like every solution, metallic money began having loopholes. One of the major problems with metallic money is that it’s centralized and could be easily manipulated in terms of weight and purity.

● Paper money (fiat):

With paper money, storing, transportation and non-perishability of money became very easy. The Chinese invented paper money, and since it had the features mentioned above, it became very easy for it to be widely accepted. After a while, the centralization of paper money began showing forth. Then the inflation issue started, and the need to put money in the hands of the masses erupted. Hence, development of digital currencies – with digital currencies, you can now sell and store valuable assets and exchange them for fiat money. Fiat is the traditional money and has been in existence since coin became obsolete. However, the traditional fiat (paper money) remains relevant, but there’s a greater need for the transition into the cryptocurrency community.

● Cryptocurrency:

The development of cryptocurrency saw a new wave in the evolution of money. From barer to paper money, the evolution of money has been somewhat transitional and progressive. Money in digital assets or currencies cannot be seen or touched but could be accumulated, transferred and exchanged for other valuable assets. The evolution into cryptocurrency started with Bitcoin in 2009 when Satoshi Nakamoto thought of a way of making the first digital currency, Bitcoin. The need to make money decentralized arose, and today, there are over 300 known cryptocurrencies worldwide, and more are still being developed. Bitcoin, Ethereum, Cardano, Vechain and Ripple are some of these cryptocurrencies, each having its unique properties but with a general similarity of decentralization. You can buy Vechain, hold it in your wallet and resell it once the price increases, or you can engage in day trading that would help you acquire as many coins as you can.

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