Have you ever imagined, how the world would have been if there was no money? Invention of money is something that has changed the world. Today, money has become a resource. A resource, necessary for survival.
Money helps us buy things, meet our basic needs, gain education, develop infrastructure, build parks, gardens and malls and above all helps build a more practical world than what it was before money & currency existed. Every new research in the laboratory, every rocket that our countries launch, every hospital and school we build, every company that runs, every trade/ business between the countries and within the countries that takes place, is impossible to imagine without money.
Now, if we take a look at the world, before money/ currency existed, we would be surprised to learn that people still used a self- developed system of exchanging goods with whatever they needed in return. This system was popularly known as the ‘barter system’ or ‘non- monetary system’ in more economical terms.
At around 9000- 6000BC, when the non- monetary system was into effect, an individual could exchange his/ her surplus grains or any other valuable goods with another person who pocessed goods of equal or higher value required by the other person. This also meant there was a demand for the ‘double coincidence of wants’ which was rarely found to be fulfilled. Also, there was an absence of common unit of measurement and wealth used to be accumulated in terms of goods due to the absence of a definite means and medium of exchange. Also, trading between two countries now became a challenging one. This was the point, when money had made its appearance, as a medium of exchange with much more worth and significane.
In around 700B.C., in the kingdom of Lydia (now known as western turkey) introduced currency for the first time in the world. There was something special to be mentioned about this currency. It was made of a substance, called electrum, a definite composition of silver and gold stamped with images that acted as denominations. The introduction of metal currency was quickly adapted by the greek cities, the great Persian empire and slowly by the other countries too. In 770B.C., china used coins made of bronze. These coins took a completely different shape – one resembled a knife blade with a handle and the other resembled the metal part of a spade. The shape of these coins later transformed into a round shape with a square hole at the centre in the late 3rd century B.C. under the rule of Shi Huangdi. In India, Mughal emperor, Sher Shah Suri had introduced a silver coin weighing 178 gms. This silver coin was given a new name called ‘rupiaya.’
These electrum and bronze currencies soon created a way for the paper currencies and then fiat coins too. All these were introduced in order to limit the usage of prime metals needed to sustain industries and manufacturing. Also, these paper currencies were easier to carry, handle and were handy in international trade.
The paper currencies were first introduced by china in about 11th century (under the song dynasty). In the 13th century, explorers like Marco polo introduced the concept of paper notes in Europe and this idea was first adopted by Sweden. This was also the time when banks had stepped into the world. The paper notes at first were readily accepted by the countries but were soon rejected as people began printing too many paper notes and soon the use of paper notes came to a stop. Again, in the 18th century, there were rulers who once again brought the idea of paper notes with much more responsibility and centralisation, whose ideas were adopted by the countries all over the world.
Today in the age of 21st century, paper money too has undergone a lot of transformation and has transformed the world too. Now, it is possible to pay for any purchase without money, i.e., totally cashless. Technology has made digital payments possible with credit and debit cards, with various apps and through net banking. So, once again the world has become cashless (though not totally) as it was a few centuries ago. A person now can walk anywhere with an empty pocket and a mobile in hand.
After reading the above few paragraphs, one might feel like reading a chapter in history, but this is the only way one can trace- back, how the presence of money had transformed the world.
Invention of money transformed the lives of people, the way one thinks and hence the entire world. Today every country talks about its economic growth, about setting up national banks and about its Gross Domestic Product, which we commonly call as GDP. This is possible today only because of the presence of money. Survival of a human being basically requires oxygen, food, and water but today, it is the money with which can buy these essentials. Men and women now earn a definite sum of money, they began buying land, houses, car, furniture, gold and silver as a way to create savings and experience luxury. Money and power now walks hand- in- hand. In fact, money was soon successful in creating a world where people were classified into rich, poor and middle class men. Greed and materialism were some of the words that were getting definitions now at a faster rate. But there is always a saying, when good things happen, bad things too occur and vice- versa. The good thing that occurred is today everything that we intend to buy or sell has a definite and fixed sum of money which makes one plan their survival and savings. Apart from this, money is also an important element to achieve our dreams and put the human ideas into reality.
If money is so powerful, then what about the human force? Well, money would rather be just a piece of paper if humans had not given it this power. There are things that money cannot buy. Peace, health, happiness, relationships, nature, honesty and many more things that are required. To conclude, the invention of money was essential to make lives easier and advance it at the same time. Remember, money is a part of life, a need of life but not the life. So, let us utilise this resource in the most appropriate and the right way to transform our lives and the whole world into a better and advanced one.
