This video is about the history of money from barter trading systen to Bitcoin. How money works is also explained.
Barter system , Commodity money , Metallic money , Paper money , Digital money
Entire Money History Documentary by Mr How
The Evolution of Money
Money, by definition, represents something of value. Over the past 10,000 years, its forms have undergone remarkable transformations—from cattle and cowrie shells to modern cryptocurrencies and digital payments. Let’s explore the fascinating journey of money through history.
The Barter System: The Dawn of Trade
Barter, the earliest form of trade, involved the direct exchange of goods and services for mutual benefit. This practice dates back tens of thousands of years, possibly to the dawn of human civilization. Interestingly, some argue that bartering isn't exclusive to humans—symbiotic relationships in nature, like those between plants and animals, reflect similar exchanges. Even today, barter remains a practical system, used by individuals, organizations, and governments as an alternative to monetary transactions.
2500 BC: The Emergence of Commodity Money
As societies advanced, they began to use commodities with intrinsic value as a medium of exchange. Barley, wool, and silver were among the first forms of commodity money. In different regions, unique items served this purpose—ancient Greeks traded with oxen, Sri Lankans valued elephants, Brunei used human skulls, and some Pacific islands even relied on large stones.
800 BC: The Invention of Coins
The introduction of coinage marked a significant milestone. Coins, initially lumps of silver, evolved into round, stamped pieces to indicate authenticity and value. These first appeared in Lydia (modern-day Turkey) and quickly spread across civilizations such as the Greeks, Persians, Macedonians, and Romans. Unlike Chinese coins, which were made from base metals, these coins utilized precious metals like gold, silver, and bronze, making them inherently valuable.
1279 AD: The Rise of Paper Money
The Mongol Yuan Dynasty, under the rule of Kublai Khan, pioneered paper currency called chao. This innovation spread to Persia, where it was known as djaou. Marco Polo, during his 17-year stay at Kublai Khan's court, was astonished by the concept of paper money backed by the government—a revolutionary idea for its time.
1816–1930: The Era of the Gold Standard
In 1816, England adopted the gold standard, linking the value of currency to a fixed quantity of gold. This system ensured stability and curbed inflation by regulating the production of paper money. However, the Great Depression of the 1930s destabilized economies worldwide, leading to the eventual abandonment of the gold standard.
1980s: The Age of Digital Money
The 1980s introduced digital money, marking a new chapter in the history of currency. Digital money exists solely in electronic form, unlike physical cash or coins. Transactions occur through online systems, enabling efficient, global financial exchanges.
2009 Onward: Cryptocurrencies and Blockchain
In 2009, the world witnessed the birth of cryptocurrencies with the launch of Bitcoin. Initially valued at $0, Bitcoin reached $1 by 2011 and has since surpassed $100,000 in value. Cryptocurrencies operate on blockchain technology, a decentralized and highly secure system that has revolutionized financial transactions. Bitcoin paved the way for thousands of other cryptocurrencies, transforming the global financial landscape.
From the simplicity of barter to the sophistication of blockchain, the history of money reflects humanity’s ingenuity in facilitating trade and adapting to ever-changing needs. The journey continues as technology pushes the boundaries of how we define and use money.
00:00 Intro
00:28 What is Money
1:11 Barter Trading System
2:37 Commodity Trade
3:39 Metallic Money
5:40 Paper Money
7:30 Origin of Banks
8:48 Inflation
9:22 Gold Standard
10:13 Dollar
10:49 Inflation & Deflation
11:05 1930s US Depression & Gold Standard End
13:05 Digital Money & Transactions
14:04 Cryptocurrency
17:12 What's Real Money
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