Coins have always played a crucial role in our history as they have evolved alongside us to respond to the ever-changing needs of human society. From ancient times to today they have undergone significant changes, moving from the initial barter to the more complex and sophisticated digital systems of today.
Coins: from the origins to the present day
Before there were coins, the main method of exchange was the barter and was based on the direct exchange of goods and services, although obviously it had several limitations: in fact, there was no universal means of exchange and, for this reason, they were transactions are very difficultespecially when the needs of the people involved did not coincide perfectly.
Precisely to try to solve this problem, the most ancient civilizations had begun to use some goods with a predetermined value such as shells, rare stones or precious metals. For example, in the Mesopotamian civilization, there were some clay tablets with inscriptions indicating the value of a commodity and were therefore the first accounting tools.
It was around the 7th century BC in the Kingdom of Lydialocated in present-day Türkiye, which appeared first metal coins which were made of electrum, a natural alloy of gold and silver, and represented a standardized form of money. Lydian coins were therefore used for facilitate trademainly because they were durable, easily transported, and were universally accepted throughout the Kingdom. Metal coins were soon adopted by other civilizations such as the Romans and Greeks.
Over time, however, there was a need for a coin that was even lighter and easier to transport than metal ones and so, together with the expansion of international trade, the first banknotes were also bornfirst made in China during the dynasty Tang (618-907 AD). Chinese banknotes were at the beginning of the paper representations of the value of precious metals found in government warehouses and this system gradually spread to other parts of the world, reaching Europe around the 14th century.
As time went by, governments began to issue banknotes which were no longer tied to precious metal reserves, but based on the trust of the value guaranteed by the state and this system became known as Fiat currency which became used throughout the world during the 20th century. This system made it much easier for governments to control the economy, but it also introduced the risk of inflation and currency devaluation.
Finally, the last step that has been taken from this point of view is represented since the advent of cryptocurrencies which were created in 2009 by a group of people under the pseudonym of Satoshi Nakamoto: It is a decentralized digital currency, which uses blockchain technology to have secure and transparent transactions. The Bitcoinsunlike traditional currencies, are not controlled by the government and are therefore inflation-resistant currencies.
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