The Origin of Money

Money is a very important part of our modern society today and is the medium of exchange that everyone uses to exchange goods and services. Like everything money has its origins, what is the origin of money?

To first note money is a rather nonspecific word that could refer to many things, which is why when I am referring to the word “money,” I mean paper bills that the majority of us use today. With that now in mind the origin of money. People before a form of money used to barter, which is a method where one trades one good or another good from someone else. For example say if I traded some chocolate for some flour with someone, that is barter. Barter though it worked was not exactly convenient, no one exactly knew what good equaled the value of another good, which led to some confusion. 

After a while people began to search for other methods for a medium of exchange that had universal value; they landed on gold. Gold though it had many pros had one main con, which was that it was not exactly practical to carry around. Carrying around pieces of gold is not exactly convenient. This is why eventually, the paper money we have today came into the picture.

In conclusion, money originated from barter, which was not exactly convenient, but eventually evolved into using gold. The usage of gold because it was not practical to carry around bits of gold, eventually changed and evolved yet again into the paper money we have today. This is the origin of money.

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