History of Money

History of Money

History of MoneyHistory of Money: Money has nothing as itself but with money we can acquire many things. Money is made of paper, metal, shell or other items but the value of those materials used for making money is much lower to almost negligible than the value of money itself. In fact, money is a storehouse of wealth. There was a time the Earth had no money as such. Even during those days we used to exchange products. This exchange of products was known as barter system.

In barter system, a man who has mangoes if wanted to buy bananas, he will search for a man who has bananas and a need for mangoes. This was not so convenient. Thus, the common value holder was established which call it as money.

Money is one of the oldest and most important inventions of civilization. It was and is one of the major pillars of business. Money offered intermediary help for people who wanted to exchange their products including services.

In 1,100 BC, it was Chinese who started to use a recognizable intermediate for exchanges. They used miniature form of tools and weapons as these intermediates. The first minted coins were created in Lydia, which is the current western Turkey.

In 650 BC the King of Lydia, Alyattes, minted the first official currency on Earth. India and western histories also shows usage of coins sometime around 700 BC. When Lydia dominated in the invention of coins, China was ahead of other nations in inventing the first paper money. China introduced paper money during the Tang Dynasty in 7th century AD. It took almost another 500 years for the Europeans to receive the technology in their kingdoms.

Interestingly, there are still a few countries in the world that do not have a currency of their own. To read about the countries click here:

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