History of money goes back to 1450 BC. Till that time, people used barter system for goods they need for goods that they can give away or spare. In early-stage evolution of human society, it worked. However, as society expanded human needs increased, barter system showed many drawbacks. It led to development of commodity money – where a commodity came as a medium of exchange or currency. Different civilisation used different commodity. Some used stones, some used metals. During the period 1450 to 500 B.C. people used obsidian, pearl shell, iron ore, pottery piece as currency. Between 650 to 600 BC stamped silver and gold coin came into use. The current day paper currency is believed to came into existing in China during 997-1022 CE. In 1792, US became the first country to introduce coinage system and Dollar as a formal unit of currency. In its journey, money has evolved into different forms. Commodity to coins, coins to notes, notes to negotiable instruments. Money also evolved as a storage value. Therefore, the concept of saving and investment came into existence. It further evolved money into different financial products – fixed deposits, commercial paper, equity, mutual fund, futures, options etc. As a derivative of saving and investment, the concept of borrowing or loan also developed. Today we have a range of loan product – business loan, personal loan, house loan, car loan, consumer loan, credit card etc. Another off shot of money matter is insurance and advisory services. Latest but not least is cryptocurrency. Money evolution now has gone to next level with technology. We should not be surprised, down 10 years or so if money concept completely changes as we understand today. We are so used to money, we never question what is money. Money is inevitable in modern day life. We all work for and towards money. All the evolution of money are integral part of our life. Therefore, it is important to know everything about money and more. After all, it sets our life journey and experiences.
