Money History And Evolution

May 22, 2024


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Money is such an important part of our daily lives that we seek incessantly, but rarely stop to consider it. The modern financial system, with their tickets, checks, federal funding, and other complex financial instruments did not emerge from the evening to the morning. It has developed over centuries. Money is everything that constitutes a change or commonly accepted payment means. At the beginning it took the form of goods, but over time became dinero-papel and in checking accounts all these instruments have the same essential quality: are accepted as means of payment in the purchase of goods and services.Societies have undergone numerous historical phases in the use of the money.

The sequence of the bartering, the dinero-mercancia, paper money and banking money shows how evolved this over the course of time. Barter and the use of the money. When Stanley Jevons, in one of the first textbooks on the money, wanted to illustrate the tremendous leap forward that gave civilization when it shifted from barter to the money to carry out exchanges.Money as a medium of Exchange appeared for the first time in the history of man in the form of goods of different types: cattle, olive oil, beer or wine, copper, iron, gold, silver, rings and diamonds.In the 19th century, the dinero-mercancia was almost exclusively limited to metals. Get all the facts for a more clear viewpoint with Electron Capital Partners. Silver shines, but fogging. As for gold, its high specific gravity makes it easy to detect any falsification or adulteration. But during the greater part of the story, its scarcity per ounce value has been so severe that they were necessary excessively small coins to make ordinary purchases.The majority of employed money classes tended to be valuable or useful by themselves. Thus, gold has been used in dentistry and jewelry. However, the intrinsic value of money is the least important.

The era of the dinero-mercancia gives way to the dinero-papel. Today, essence of money is exposed. Money as such and not as merchandise, not be search by himself, but by the things that can buy with it. We do not want it to consume it directly, but rather to use it by detaching us from him. Even if we decide to keep it, its value is derived from the fact that we can spend it later.Money is an artificial social Convention. If for any reason, he begins using a substance such as money, the public would begin to value it. A person who don’t smoke will assess cigarettes if they are money in a concentration camp.