A Brief History of Human Currency



A Brief History of Human Currency:

By Sunny Oakley (Sophomore World History Midterm, 2021)

The Merriam-Webster Dictionary definition of money is as follows:

money: noun, often attributive

  • something generally accepted as a medium of exchange, a measure of value, or a means of payment: such as
  • officially coined or stamped metal currency newly minted money
  • government approved and tradable wealth

Sounds familiar right?

The concept of money has been around for a while, like a WHILE. Surprisingly, the idea of money hasn’t really changed all that much throughout human history. The basis is this: trading money or goods allows two parties to exchange resources in order to improve the current situation of both parties. Trading requires a certain amount of trust though, both in the quality of the item and the safety of the transaction. On top of the questionable security of the situation, what is considered money depends on your location, culture, and time period. Physical money has varied over the ages and has included (and still includes) a range of things. This article illustrates its progression from livestock to crypto-currency, and the main changes in human currency over the years.

Ancient Traders and The Beginnings of Civilization

 

In ancient times, people did not buy or sell with money. Instead, they traded one thing for another to get what they wanted or needed. The invention of bartering is so old that historians don’t exactly know when it began. Archaeologists found evidence of bartering dating back to roughly 15,000 years ago in the Upper Paleolithic era. In those times groups of hunters traded for the best flint, weapons, and other tools. Later, around 9,000 years ago, it was thought that communities would exchange grains, cattle or surplus tools among themselves.

Realistic representation of trading in ancient Sumerian marketplaces

This system worked out pretty well for a while, as bartering requires no shared spoken language to work. This all changed with the advancement of the Sumerians in Mesopotamia. Along with written language, the Sumerians developed the concept of banking under the barter system . Sumerian temples would accept items in exchange for grain or other food, and so a merchant community grew. People slowly came to the conclusion, however, that it was difficult to lug around cows and food when you needed to make larger acquisitions. This was the problem which spurred the first major jump towards money.

Tokens and Coins

 

Shells were the first tokens representing value exchanged as money.

Around 1200 BC, cultures around the Indian Ocean decided to use sea shells as tokens. These shells were the first version of the coins that we know today. They were a perfect choice for budding economies, because although they were rare there were still enough for everyone to have a chance at success. This was a massive leap of faith for early civilizations, who were accustomed to exchanging items that they could physically use. Shells are pretty, and nice ones are difficult to come by, but you can’t eat a shell.

Using shells as tokens of value slowly transitioned to the use of round, flat coins made of precious metals. These were much easier to carry around and much more resilient after long periods of use. The first government issued coins appeared in about 600 BC in modern day Turkey. Coins made of precious metals remained the standard thereafter for over 2,000 years, until around 1000 AD in China. Then came the first paper money.

 

Modern Physical Currency

(https://merriam-webster.com/assets/mw/static/table/collegiate/money.jpg)


 

Barter system is defined as exchange of goods for other goods without the use of any medium of exchange.