Money in its usual form ceases to exist. An increasing number of monetary transactions can be performed without touching paper banknotes and metal coins. It seems that the history of physical money is ending. And how it began, not everyone knows.
For the modern user, the exchange of goods with the help of a monetary equivalent has become so commonplace that hardly anyone thinks about what money is and what value ordinary pieces of paper or metal discs can be, the cost of which is calculated in pennies.
To answer this question, it is probably worthwhile to trace how money appeared in its present form, and how commodity exchange took place before its invention.
Why did you need to come up with money
The main function of modern money is to determine the measure of the value of a particular product and service. Money is the only way to unify the amount of pledged labor for production.
In the early stages of commodity exchange relations, barter systems were used. Each manufacturer independently determined the range of goods that could compensate for the cost of his proposal. Therefore, it became necessary to create templates that determine the cost of each type of goods.
What served as money for different peoples in different historical eras
The need to choose a commodity equivalent sooner or later appeared among all representatives of the human race, regardless of their location. In various regions of the planet, a variety of objects were used as conventional units that form the value of goods.
In Russia, in Canada, sable skins were used as a measure for determining the value.
Among nomadic tribes and, a little later, among pastoralists, cattle served as a bargaining chip.
Many peoples living in coastal regions used shells and stones with washed holes as money.
It was not uncommon for food to be used as an equivalent of value. In Mexico - cocoa beans, in India - sugar, in some African tribes - salt.
For the Scythian tribes, arrowheads were currency.
What requirements should money meet
At certain stages of trade relations, the use of objects as money streamlined trade processes. But with the expansion of the market, it became necessary to standardize commodity equivalents.
First, money must be easy to store. Secondly, when they are divided, they should not change their value. Thirdly, they should be of equal value to representatives of all regions.
The symbiosis of archaic money and money in their modern design can be considered coins of the 7th century, which were made from a natural alloy of an electron in Lydia. Over time, their flocks were minted from gold.
The appearance of money led to a surge in the development of crafts and trade and became a fundamental milestone in the further development of civilization.
