Summary: <p><strong>Barter System</strong></p> <ul> <li>Barter system has been in existence since 6000 BC</li> <li>Earliest forms of barter system had livestock trade (sheep, cattle, vegetables, grains)</li> <li>It was first recorded in Egypt</li> <li>Mesopotamia to Phoenicians and the Babylonians improved the system</li> <li>Goods were exchanged for food, tea, weapons, and spices. Even human skulls were used. Salt was a very important trade commodity that Roman soldiers were paid with it.</li> <li>Middle ages, Europeans traded crafts and fur for silks and perfumes.</li> <li>Musket balls, wheat, and deer skins were used by colonial americans</li> <li>The invention of money did not kill barter system. But it made it organised.</li> <li>Barter system came back during the great depression of 1930s in a form similar to that of banks.</li> </ul> <p>Disadvantages:</p> <ul> <li>No certification of proof to show legitimacy of the person you are dealing with</li> <li>It depends on trust</li> <li>Possible exchange of bad commodities</li> <li>Need a double coincidence of wants</li> <li>No common measure of value</li> <li>Storage issues high</li> </ul> <p>Advantages:</p> <ul> <li>No need of money</li> <li>Flexibility that anything can be traded.</li> <li>Does not have to be material items. You can exchange skills</li> </ul> <p><strong>Coin & Paper Currency</strong></p> <ul> <li>Currencies has been in existence for almost 3000 years</li> <li>Chinese started using goods cast made from bronze (cutlery, arrows, spades, daggers)</li> <li>They started using coins to avoid being impaled</li> <li>First known minted currency was a roaring lion coin created by King Alyattes in Lydia (present Western Turkey)</li> <li>It was made using a mixture of silver and gold which is called Electrum</li> <li>Chinese came up with paper currency in 700 BC (Tang and Song Dynasty). These notes in the beginning where only temporarily valid.</li> <li> <p>By 1271 AD, the currency system in China was thriving. The government had took over shops which print currency and made state-issued currency. It was the time when Marco Polo visited the place.</p> </li> <li> <p>Medieval Islamic world build a monetary system during 7th - 12th centuries (Dinar). They are the first to use credit, cheques, savings account, transactional accounts, exchange rates, promissory notes, banking institutions for loans and deposits, etc.</p> </li> <li>Manilla rings were used in West Africa since 15th century for slave trade.</li> <li>Metal coins and Archimedes Principle - To test its purity</li> <li>Europeans used coins up until the 16th century. And it was not until 1661, Europeans (Swedes) started using paper currency.</li> <li>European paper notes could be exchanged at any banks for gold or silver coins</li> <li>More than the government, it were the banks and private institutions who used to regulate the printing of currency</li> <li>First issuance of currency happened in colonial North America so that the traders do not run out of money.</li> <li> <p>Paper currency improved international trade and also lead to conflicts between empires.</p> </li> <li>Impact of World Wars lead the countries involved to print currency out of proportion leading to inflation. The Great Depression of 1930s is a result of this.</li> <li>Gold is set as the standard for printing currency.</li> <li>Mobile and virtual currency - The move towards digital banking</li> <li>Invented in 2009 by the the pseudonymous Satoshi Nakamoto, Bitcoin has become the gold standard of virtual currency.</li> </ul> <p><strong>Facts:</strong></p> <ul> <li>American - "In God we trust", Chinese - "All counterfeiters will be decapitated"</li> <li>Currency helped improve Lydia's economy, but they were conquered by the Persians not long after.</li> <li>In 1685, plating cards were signed and issued as currency by the governor for soldiers in France.</li> <li>Coins made out of a mixture of metals were used in India.</li> </ul> <hr> <ul> <li><a href="https://imojo.in/podcast" target="_blank">Bijay’s Podcasting course</a></li> </ul> <p><a style="" href="https://unsplash.com/@steve_j?utm_medium=referral&utm_campaign=photographer-credit&utm_content=creditBadge" target="_blank" rel="noopener noreferrer" title="Download free do whatever you want high-resolution photos from Steve Johnson"><span style="display: inline-block; padding: 2px 3px;"><svg xmlns="http://www.w3.org/2000/svg" style="" viewbox="0 0 32 32"><title>unsplash-logo</title> <path d="M10 9V0h12v9H10zm12 5h10v18H0V14h10v9h12v-9z"></path></svg></span><span style="display: inline-block; padding: 2px 3px;">Steve Johnson</span></a></p>
