Kritika Handa
Before money, people exchanged goods directly through barter. This system was cumbersome and inefficient.
Commodity money, such as gold and silver, gained value due to its inherent worth. It declined due to inefficiency, value fluctuation, and inconvenience.
In ancient Mesopotamia and Egypt, metal coins and standardized weights were introduced. They saw a decline due to economic expansion, and higher costs.
China’s Tang Dynasty was the first to use paper money in the 11th century, which simplified transactions by eliminating the need to carry heavy metal coins.
Medieval European banks started as places to store valuables. They eventually evolved into institutions that issued paper money and provided loans.
In the 21st century, digital currencies like Bitcoin emerged, offering alternatives to traditional money and transforming financial transactions.