What Is Money? Its Evolution Over the Years
The evolution of money is an interesting subject. Its earliest use involved bartering, which was the means to exchange goods and services. From rocks to crops and cattle, these items were considered valuable and served as money for people living in ancient civilizations. Then, makeshift coins followed, and a little later, the issuance of paper money began.
The concept of money has always been to use it as a medium of exchange, which allowed people to trade the money they have for things they don’t have but want to buy. However, the earliest forms of money were quite crude in terms of the materials used. For instance, instead of the metal coins that are in circulation today, ornamental shells were used in some parts of the world.
Over time, money has undergone so much transformation that today, both physical and digital money exist, with the latter being particularly revolutionary. From credit cards to chip cards and cryptocurrencies, these forms of electronic money give you the freedom to choose which medium of exchange to use for your financial transactions.
Today, cryptocurrencies are becoming more mainstream, with many people and businesses making investments to own their coins.
What makes cryptocurrencies more advantageous over other types of money is that they have a decentralized nature. Because digital currencies utilize blockchain technology, the verification of transactions happens only within the network.
You don’t have to wait for banks and clearinghouses to review and approve each time you want to move your assets from a digital wallet to another. This saves you time and transaction charges.
Indeed, money has come a long way in terms of form while retaining the way it works in allowing businesses and consumers to trade things of value with one another. Check out this infographic that traces the evolution of money.