What is money?

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The money can be understood as a means of payment. Therefore, is that money can be understood as anything, that society as a whole, acceptable, when making a payment for a good, service, or a previously acquired debt.

This is how come into play, notes and coins, a world apart are bank deposits, which in theory are also considered as money. But back to the tangible money, this is universally used as a means of payment. The strange thing is that today, this does not have great intrinsic value, relative to the value it represents. And is that for states, due to advances in technology, more and costs less to produce notes and coins.

With respect to the history of money, this will be gradually emerging in various ancient civilizations around the world. In the beginnings of economic exchange, which was basic subsistence goods, everything was pretty easy; chickens were exchanged for milk, cattle in exchange for land, etc. This system of exchange of goods is known as barter. People wore the goods they produced to the market, where the exchange took place. This means that an individual was not able to produce what I traded for if possessed. Even today popular markets operate in a similar manner.

Other ancient civilizations, like the Maya or Azteca in Mexico, used to facilitate the exchange goods that have intrinsic value. In these specific civilizations took cocoa, as a luxury good, which could be exchanged for any other property. In fact, the cocoa beans were more valuable than gold to them.

But how do we come to the current money system? Well, for the Eastern civilizations that used the barter system as a means of payment for foodstuffs, they became somewhat complex. As the development of trade grew, began to form larger towns, which in turn allowed more goods and share more easily. All this was bringing a progressive specialization as far as regards goods and services (born and begin to develop the professions or trades), which made it quite difficult to exchange, for a musical work, how many cows should I accept?,? and a painting?. For these reasons, it was necessary to standardize the exchange using a common denominator. Thus, as in the sixth century before the birth of Christ, in Asia Minor developed money.

The first concept of it, was made by coins had intrinsic value. Since they were minted using gold or silver. But this system turned with time, defective, large amounts because it was necessary to transport large quantities of pouches, whose weight was important.

Thus, as in the ninth century, the Chinese created paper money or bills. Which was expanding, to Europe, where improvements were made to the printing of the papers, as likewise, artistic touches were given to them. Very similar to the tickets that we have today. Europeans developed impressions, which identified each of the countries. Mainly, these impressions were related to the reigning royal houses of the time.

Thus we can see that the history of money has a deep relationship with the world of today, their professions and occupations, and the more modern payment methods such as credit cards, e-cards, checks and payments electronics.


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