There are many types of currency such as trading items, paper money, coins, credit cards, and debit cards, etc. This essay is going to be talking about Currency and history, timeline, and who is affected by inflation. This essay will utilize numerous types of articles to give the reader of this essay the best information about various types of methods of payment and what money is used for in the world. The essay is going to start with a timeline of the evolution of money to the present and the future. Following that the next paragraph is going to be about who is affected by inflation.
The first indication of currency started with bartering or the more popular name trade. Bartering started tens of thousands of years ago and presumably started by modern humans or also known as homo sapiens. The word barter means the exchange of resources or services for common advantage. People would trade or in this case battering shells, stones, metals, barley, rice, salt, alcohol, tobacco, and traditional crafts as a form of commodity money. Some disadvantages to bartering are that you need to negotiate intensively, and it’s not as effective as paper money. The first disadvantage of bartering is intensive negotiating.
The person in which you are bartering will not back down until they get what they want and vice versa which will create a problem that will make securing a deal happen extremely harder than usual. The first disadvantage of bartering is that it’s not as effective as paper money. If the economy crashes due to bartering it will be not a great asset to have, unlike paper money. The single advantage of bartering is that international bartering can conserve foreign exchange reserves. International bartering is good because it can conserve physical paper money and coins and barter items we don’t need which we would get to keep to profit.
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In 9000 – 6000 B.C. People would use cattle as a new form of bartering or trading. Cattle includes cows, sheep, camels, and other livestock which is one of the oldest types of money. With the evident climb of agricultural farming also came grains, and vegetables such as carrots, corn, mushrooms, red, green, yellow, orange bell peppers, Avocados, cucumbers, etc. or any plant-based products as a standard for barter in all of the world’s many diverse cultures. In 1200 B.C. people started trading Cowrie Shells which are from the animal’s mollusk which are widely available in shallow waters of Pacific and Indian Oceans around the china region as a method of payment. There are around 30 Cowrie Shells with various shapes, sizes, colors but have the common circular shape folding into the center just like a folded taco. People usually in Africa used cowrie shells as money until the middle of this century which was the widely and longest-lasting currency in history.
According to PBS.org the field metal money and coin started back in 1000 B.C. In China Bronze and Copper cowrie, illegitimate reproductions were made at the end of the Stone Age (approximately 8700 BCE and 2000 BCE) It was one of the earliest types of metal coins ever made also were various kinds of shapes and sizes. The people of China had coins that were made out of base metal and had a hole in it so that if a person would like they could connect them like a chain.
Monies are is the plural of money in which the article uses. In 500 B.C. the modern coinage was implemented first in Lydia which is now part of Turkey. The first-ever coin was created from a lump of silver. The method of making these coins was copied and later improved by the Macedonian, Persian, Greek and the Roman empires. The difference between the Chinese coins and the new coins was that the Chinese coins were made out of base metals and the others were made out of bronze, silver, and gold medals, which were more precious metals.
After the modern coinage stopped being used in 118 B.C., Leather money was created by the Chinese people. It was in the form of one-foot square pieces of white deerskin with colorful borders and was considered the first documented type of banknote. Leather money looks like a scroll from the Egyptian pyramids with various types of shapes on the money with black or red ink and the image is on a tan-colored piece of paper.
According the history of money by PBS.org In A.D. 800 – 900 The Nose was used alongside paper currency around 806 A.D. The nose or the phrase “To pay through the nose” was used more popularly in Danes, Ireland which meant a person would split the nose of a person who would pay the Danish poll tax. This is significant because it was a form of payment and punishment for the people of Danes, Ireland. Six years after the Nose was created paper currency was started to be utilized in china which spanned from ninth through the fifteenth century (500 years). Paper currency or paper notes ramped up production way too high that the value of money immediately depreciated and inflation rose. In 1455 paper money disappeared for several years due to depreciation and inflation. Paper currency would reappear in Europe and other select countries.
After paper notes in 1500 potlatch came into existence. The potlatch comes from the Chinook Indian customs which was used in North American Indian cultures. Potlatch is a ceremony where people of the neighborhood are exchanging presents, dances, feasts, and public rituals are performed. They needed to establish the social rank of the leader because they would exchange gifts with each other. Some Potlatches would be an initiation into secret tribal societies. These Potlatches or parties would get out of control because of each person at the Potlatch would try to outdo the next person to see who has the best gift.
In 1535 the wampum was starting to be used in North American Indian societies. Wampum is a necklace with multiple clamshells. The Indian word wampum means white which was the color of the clamshells on the necklace. In a google search, there are wampums of different types from scarves, necklaces, rope-like objects, shells, and images.
From 1863-1930 the gold standard was started in England. At this time, the English people made banknotes that were non-inflationary production and had a designated amount of gold (just like modern money but with gold). They’ve been using banknotes for several years but now banknotes are connected to gold. The Gold Standard Act was made in 1900 and lead to a central bank being made. The end of the gold standard in the depression of 1930 which was felt globally. The gold standard was changed and it decreased in value. The relationship had to end completely between the British and international gold standards which lead to the complex problems of international financial regulation began.
The future of the currency is electronic money. All money is going to be in banks, bitcoin, or in stock, any accessed by your phone or a card but more likely by phone. In the future, there could be exclusively only one kind of digital currency. It could end pound, euro, yen, franc, peso, dollar, rupee, birr and any other type of currencies around the world. According to Thoughtco. there could only be 4 to 5 types of currency.
Even though it might be hard to make universal currency because of the different types of governments and their various ideologies on making in a consolidated and centralized currency. We already see various types of countries coming together to get a job. This is apparent from a Canadian business organization making a contract with a Saudi Arabian company and the interesting thing is that the negotiation of money was in American dollars and Euros.
Inflation impacts numerous different kinds of people. There are two assumptions to inflation. The first assumption is that inflation affects everyone in the U.S.A equally because we are using the same dollar so we all are affected the same but that’s not true. The second assumption is that poor people are affected a lot harder than people in the middle class, upper-middle-class, and the rich class because they earn minimum wage. But in actuality, minimum wage rises and lowers with inflation at the same time. The Government is always on edge they can not raise the inflation on debt away too quickly or else it will destroy the economy it’s like a balance they need to slowly pick each side so that it doesn’t fall or tip over the economy.
The definition of Inflation according to Wikipedia.com is a sustained increase in the general price level of goods and services in an economy over a period of time. All in all the people who are impacted by inflation rising are the small scale lenders and the economy because they have fixed wages in which they don’t get more money with the increase from inflation and the economy goes down because prices go up and it’s hard to sell things. The Government and the borrowers are the people that aren’t affected by the increase of inflation because the government control the money supply and borrowers are getting money which means they aren’t affected.
In conclusion, The History of Currency started at the dawn of modern humans with bartering. Through the following centuries, humans would trade a bunch of things along the lines of cows, cattle, sculptures, food items, etc. Then the first actual money was created in 1000 B.C. in China. The later iterations of money were made also in China except for the American dollar. Then in 500 B.C., the modern coin was started being made. After that leather money was made in 118 B.C. and it looked like an ancient scroll. Then from 800-900 A.D. the nose which was an act of harming a person if not paid the poll tax and in 806 A.D. paper currency started being made.
In 1500 people would throw a potlatch which is a ceremony. Then wampum which is purple and white clam shells around 1535. Then the gold standard in 1816 and ended in 1930 which was basically where money or banknotes was linked to gold. In the future, there aren’t going to be pay money but it’s going to be electronically and possibly 1 unified currency. Inflation only affects small scale lenders and the economy because they have fixed wages and the economy goes down because prices go up and it’s hard to sell things. Inflation helps the government and borrowers because the government control the money supply and borrowers are getting money which means they aren’t affected.
