We use currencies in every single activity. We buy and sell goods and services. Currency appears in a variety of forms such as cash, paper bill, coin, credit card, and so on. Money is the power of the world economies. In this article, we will find out why civilized societies have used currency in all long history. The currency has advantages compared with other alternatives.
In the original period of humankind, people didn’t use currency. They use exchange a kind of goods for another one. However, this is inconvenient because sellers don’t need which buyers give. Money is the universal form of value. Everyone can use currencies to simplify transactions. Money is convenient and portable. Transactions are carried out at the faster speed.
Money isn’t only about coins and paper notes. It has been involved in various forms throughout history. In the beginning, certain commodities became a standard method of payment. Aztecs people used cocoa beans as trading goods. Nevertheless, commodities have a bunch of sizes. It’s hard to carry in some situations.
Ancient Egyptians created metal rings to use as money. Coins have been used since 700 B.C. Paper money was used for the first time by Tang Dynasty in China. Nowadays, we have so many forms of payment, especially electronic currency. Western Union finished the first electronic money transfer in 1871.
Although money is transferred in a series of forms, it has the same goals. This helps stimulate economic activity by increasing the market for various goods. Consumers can save up and store wealth to address long-term needs. Currency plays an important role in the economic development.