The basic definition of money depicts anything that is generally acceptable within a group or community. But wait, who coined the word money and who was the first to use it?. Before the invention of money what was the medium of exchange? These are the questions lingering in our minds. First let drive through the past.
HISTORY
Let curl this topic sequentially. In the beginning, people bartered. Bartering is the exchange of a goods or services for another goods or services. For example, a cup of corn for a cup of rice. Disputes in measurement and inconveniences drives man to develop community money.
Historians believe metal objects were first used as money as early as 5,000 B.C. Around 700 B.C., the Lydians became the first Western culture to make coins. Other countries and civilizations soon began to mint their own coins with specific values.
Government prevents private printing in order to regulate acceptability, trust, fraud, control, to avoid inflation and maintain economic stability. Decades has passed since the first coin was minted in Lydia by merchants and since the first generally circulating currency was released by Tang Dynasty in 7th century, more than 700 years before Sweden issued the first European banknotes in 1661, government has always been in control.
FINANCIAL CRISES:
Fast forward to date when banks are lending money they don't have, charging crazy interest rates supported by the authorities who were created to curtail such activities. They exclusively caused the financial crises in 2008 through deregulation that permitted banks to engage in hedge fund trading with derivatives. Banks then demanded more mortgages to support the profitable sale of these derivatives. ... That created the financial crisis that led to the Great Recession.
PRESENT
Today we no longer trust the government to print and regulate the out flow of money. They failed in their obligations years ago and people have realized that in order to plan for posterity we must take control of money. Fiat currency cannot solve such electrifying issue rather BITCOIN -CRYPTOCURRENCIES has been created to disrupt and usher in the glimpse of the future.
Stay tuned. Part 2 is coming soon.