How did money emerge?

Currency emerged centuries ago, and it was believed that is started with the domestication of cattle as well as crop cultivation. This was estimated to be around the period 9000 to 6000 BC. During this time. Crops and livestock were used as money. These items were chosen as money then, because of the reliability and utility. Many people rely on them because of their importance. Furthermore, it was widely acceptable to society at that time. This means that they were accepted as money because they can be re-traded, and they can be reused. Acceptance is an attribute of anything that can serve as a currency. It must serve as an exchange of money because they are marketable. When you exchange them, you will value them.

As society continues to evolve as a mode of production continues to improve with the division of labor taking center stage, it becomes certain that a new form of exchange becomes inevitable. Physical separation of activities becomes possible with skilled laborers ready to offer their skill and clients who are need of such skill ready to engage them. This means that a new form of exchange that would be acceptable to all concerned become imminent.

The emergence of coin

It was around the period 7th millennium BC that people of Western and Central Asia evolved a means of transaction. This centered on the rich mineral deposits, which are often extracted from the ground, such as gold, tin, copper, and so on. The practice continued until centuries later when gold bars were accepted as the standardized weights. Apart from that, it became the value of exchange in the advanced societies of that time, such as Egypt and Mesopotamia, other neighboring countries were copying from them. At the same time, other regions of the world were experimenting with different forms of trade and payment transactions. In some societies where gold was not used, other items such as cowrie shells were common in some areas like Africa and East Asia. Others also use such instruments as beads, stones, animal skins, and so on.  Some even used spearheads and weapons, and so on. These continued to exist, and it was later reformed, but it took years to develop. These continued for centuries until coin emerged as the form of monetary exchange.

The coin was introduced around the year 7th century BC.  It was believed to be first used in the ancient kingdom known as Lydia, which is located on the western coast of what is currently known as Turkey. The first coin was known as electrum, and it was a combination of gold and silver. These coins were rare, and they are available in different shapes and sizes. These coins were written on one side of it. They are significant because they are available in the standardized weight, and this can range from anything 0.15 grams to 14 grams.  Some of the old coins have names inscribed on them, and some of them include the names Kalil and Walwel, and these were believed to be the kings of that kingdom at that time.

This was where coin emanated, and from there, it spread to other parts of the world, which include the Greek regions as well as the Asia Minor coast. From there also reached the Greece Mainland.  Soon it paved the way for nations and kingdoms at that time to produce their coins or currencies.

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Payam Zolfagharian

Hi my name is Payam Zolfagharian, I’m a retail forex trader. I will show you how to be a successful forex trader, preserve your capital, generate consistent and profitable returns from forex trading and finally trade for a living.

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