What was money like in the past? 💵
Bitcoiners,
Money has changed form many times in the last 10,000+ years.
Here is a list of objects used as money throughout history so you can better understand the evolution of money.
Cattle
Before money, humans bartered for desired goods. The earliest forms of money that evolved barter trades were cattle or other livestock from 5,000-10,000 BC. In some local cultures, grains or other types of plant products were used as a medium of exchange between two parties.
Shells
Several cultures around the world used shells as a form of money. The most popular shells called cowrie shells were popular in India, Africa, and China from the year 1,500 BC. American Indians used small white shells as a form of money and for ceremonial gifts.
Coins
Most modern metal coins consisting of gold, silver, or bronze, date back to the year 700 BC in ancient Greece. In China, coins were hole-punched so they could be strung together and added up. Coins were revolutionary technology at the time because they were easy for a government to add their seal of authenticity and not easily counterfeited.
Paper Money
A primitive form of paper money used was leather dating back to 100 BC in China. Through the next 1,500 years, China experimented with different forms of paper money until they arrived at a paper currency system like we have today. Shockingly, inflation existed back in the paper currency days because too many paper notes were issued.
Gold
In the year 1816, the Bank of England officially made paper money convertible to gold at a fixed rate. The gold standard thrived through the industrial revolution up until the last century. Gold was chosen by the free market as the most desirable commodity to be used as money.
Today
The gold standard ended with the Gold Reserve Act of 1934. Since then, money has taken the form of a mix between treasury bills, endless credit and debt systems, paper money, gold, and digital currency. Bitcoin is the newest form of money competing as a technological breakthrough to the existing system.
Happy Monday,
-Pod
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Eric Podwojski
Founder, Bitcoin EDU
Twitter:Â @epodrulz
Disclaimer: This should go without saying: This is not financial advice. This is not investment advice. I write this newsletter for education and entertainment. Act accordingly.
