Money is at the center of a capitalist society we all live in. The money shows dominance and power. With the advance of the technology, money transforms into a fully digital asset that is less tangible yet still very powerful. This short book will show you the history of money, banking and payments. It will help you understand what hides behind the term FinTech and what is the current state of the financial technology.
Since the beginning of humanity people used natural exchange to get the goods, they need in exchange for the goods they have.
According to Aristotle: “Natural exchange as an exchange for the purpose of satisfying needs. Unnatural exchange, on the other hand, is the acquisition for the purpose of satisfying wants or for making profit”
Bartering is a direct trade of goods and services.
This system has been used for centuries and long before money was invented. The value of bartering items can be decided upon with the other party. Bartering doesn't involve money which is one of the advantages.
Generally, trading in this manner today is done through online auctions and swap markets.
The history of bartering dates all the way back to 6000 BC.
Introduced by Mesopotamia tribes, bartering was adopted by Phoenicians. Goods were exchanged for food, tea, weapons, and spices.
At times, human skulls were used as well. Salt was another popular item exchanged.
When money was invented, bartering did not end, it became more organized and adapted to the times.
Pros
Cons
No need of money
No consumer protection or
warranty
Flexibility (exchanging goods for
goods, services for goods etc.)
Requires skills and experience
No fix exchange rate
No fix exchange rate
The terms money and currency are often used interchangeably. According to some theories, money is inherently an intangible concept.
Currency, on the other hand, is the physical or tangible manifestation of the intangible concept of money.
According to this theory, money cannot be touched or smelled. Currency is the coin, note, object, or physical representation that is presented
in the form of money.
The basic form of money is numbers while the basic form of currency is paper banknotes, coins, or plastic cards like credit or debit cards.
