Who is Money?


Everyone wants to have money that has never been loyal to anyone but from Beggar to Billionaire. It's not just a piece of paper It's an Addiction He transformed Hunters into blacksmiths, merchants, and kings. It was the Money that forced these people who lived in the forests to live in these tallest buildings but where did the Power of Money come from? How it was made? When? Why? And what is Money? Money is a piece of paper that has no value of its own It just tells us the value of other things. We work day and night for it But in the end, we gave this to others So that we can buy what he has and then that person gives the same money to someone else So that he can buy what he likes And so the money goes around the world from here to there You know how much money is in the world right now?

What is visible to you is $83 Trillion and which was not visible to you may be its $1300 Trillion.  Where all this money did come from? Who made it? So come with me on such a miraculous journey In which we will know the Story of Money you never heard before We're going to know all the things you never thought before today From stones to Gold and silver coins to such money that is invisible How did it become a language that everyone in the world understands How this Lifeless thing made us his slave?


Barter System

So let's go 17,000 years ago When there was no sign of Money This was the time when humans lived in small tribes And they all had only one goal Hunt and Survive But prey is something that not be found easily every day But hunger strikes every day It was the hunger that forced one tribe to take and give something from another tribe If you give us fresh meat, we will give you our weapons both have benefit from this transaction Because if you take something forcibly You will get it once But not the second time And so the Barter System was born Giving or taking things.

The barter system is said to have originated somewhere in Mesopotamian Tribes. Mesopotamia is the name of a region in Southwest Asia where Iraq is today this is where the Mesopotamian tribes used to live. The barter system changed us. People who used to fight each other now started to live together, and everyone started trading with each other.


Origin of Accounting

And thousands of years later when the population of people increased and apart from hunting, they started farming now Due to this the shortcomings of the barter system started to come to light. It was hard to remember when trading with so many people from whom to take what and whom to give to remember this, we started writing on small pieces of clay which started accounting. We started accounting for things but the problems of the barter system were not going away the biggest problem was that both parties had to agree to trade You want what I have But I don't want what you have Because of this, the trade could not be done.


Commodity Money

It became very difficult to trade through the barter system and now we wanted something that everyone wanted and thus began money. It's not the money you're thinking of it was commodity money. We monetized everything rare Which we also use and everyone was willing to trade by this Like a cow, buffalo, goat, ox, knife, thief, arrow, sword, Animal skins Tobacco, Salt Peacock feathers, Whale teeth, Alcohol, Cowry shells, And even humans Yes, it was common to use slaves as money at that time Or on the Yap Island, people used to use big donut-like stones. Which used to weigh up to five tons, they are called Rai Stones Once it was placed, it stayed there forever, and they just remembered who it belonged to. Commodity money made our life easier but it had a big problem it was very difficult to know what the value of what I had was each commodity seemed to have its distinct value and now we wanted something that had a certain value and take a long time to expire Things like animals and alcohol deteriorate over time


Metallic Money 

2600 years ago today Metallic money started in Ancient Greece Gold and silver were mixed to make coins with Lion and bull on them People used to get only two coins after working day and night, they did not even get food from them. The Lydian Stater It is said that the coins were first introduced by the Chinese in 1000 BC who used to make brass and copper coins but It was not necessary to use them like the Lydian Stater. After the Lydian Stater everybody started making coins. The king of each empire started minting coins of his name. Everyone started using coins because it became very easy to trade through them but if you look at it in a certain way, metal money was also considered a commodity. If the coins are less, it's not an issue but if they are more, then their biggest problem starts to appear. It's 500 BC, it was a time when overseas trading was booming and all this trade was done in coins But the more coins, the more they weigh, and due to their heavy weight, they also took up more space in the ship And it took a long time to transport them, Due to which the risk of coins being stolen increased a lot. It's easy to count coins but who will count this many coins? Now we need something light weighed that we can easily shift, store and count. 


Paper Money

There is a very famous saying “Everybody likes progress but nobody likes change’’ and that's what happened with Paper Money. Emperor of Mongol China and grandson of Genghis Khan ‘Kubla Khan’ Who made the world's first paper money from the bark tree. And like I said People don't like change And why should they like it? Kubla Khan used to give these people only a piece of paper in exchange for their precious sparkling diamonds but who refused to take the paper money of Kubla Khan would have been put to death. Actually, it was paper money but it is called IOU- I OWE YOU that I owe you a debt You take this paper and come to take your gold coins whenever you want And people thought why change it into gold and silver Just trade this paper And like the coins, this idea began to spread outside of China But unknowingly, such a power was about to begin Which was impossible to stop And that power was the banks.


Origin of Banks

Because of paper money, international trading increased to this extreme I.O.U's mean paper money of that time is now available to everyone, and here are some people who were hungry for money. They took their gold coins from the people

and give them I.O.U's But the I.O.U was something they could print as much as they wanted And people also started taking that paper money Because they were afraid of gold coins being stolen and you know how a bank makes money? By lending and now that mini bank started lending IOUs to those people Due to which paper money became abundant in the city And because of the abundance of paper money, something came out Which is called Inflation. What was worth one I.O.U increased to ten I.O.U That bank did not have as many gold coins as there was paper money in the entire city And when people found out that the price of their I.O.U is going down So they ran to that bank to get their gold coins But that bank had nothing to give to all of them People lost their trust on banks And for many years no one even thought about the bank. Now they started hiding their gold coins in the house Due to this the circulation of money was greatly reduced and many problems started to appear Gold Standard.

In 1816 Britain brought a new law that we will print money as much gold as we have which not cause inflation and debt will also be given in a limit. This is called bringing paper money to the gold standard and soon all the countries began to limit their paper money to the gold standard and eventually the USA adopted the gold standard in 1900. It cannot be denied that when money was made it brought with it a thing that is impossible to avoid and the thing is Greed for money doesn’t matter how much you have you always want more. If you have 100 crores, why wouldn't you want to have 1000 crores? Doesn't matter how much money we have we always want a little more, a little more, just a little more, and in this little cycle, paper money that was going to make such a turn after which it was impossible to stop. If the country has more money inflation occurs Rise in Prices which is harmful But If the country has less money, there is deflation which is even more harmful.


1930s Great Depression and Fiat Money

The 1930s The USA was in the Great Depression because of deflation (Low Prices), Because things were so cheap and the companies were not making enough money to pay their employees which caused the economy to crash People had neither money nor jobs and the solution In 1933 President Franklin D. Roosevelt ended the relationship between the dollar and gold. Now all that was there was paper money and now the banks had their power back. And they know how to take advantage from it and that power is Printing Money you know what happens with more money Inflation and to control it, America created the Central Bank FED Which regulates that there is neither more nor less money in the country but the dollars you could convert into gold Which was an I.O.U for you and now it become only a piece of paper, It is what it is. It's just a worthless piece of paper. It has no value and now it became Fiat Money You think that only Dollar is the Fiat Money NO All the currencies of the world don’t matter its Pakistani or Indian all these currencies are Fiat Money. All these pieces of paper are not backed by gold or any physical commodity. If this piece of paper is nothing So how do we buy everything from it? Because we just believe that we will get something in return what lies in your banks, Wallets, and lockers is only trust, not money. The value of which is decreasing day by day due to inflation Paper money had eased many of our difficulties.


Digital Money

 It could be easily counted, handled, and carried anywhere but something that was much needed in this fast-changing world. That thing was speed Paper money can be easily carried but it also takes time. Now we need something by which we can transfer money to another in a few nanoseconds and E - MONEY was launched in the 1980s called Digital Money. Millions and Billions of transactions in just a few seconds. No fear of being stolen, no need to count and so the banks don't even have to print anything anymore just type some numbers on the computer and the money is made. The truth is that we cannot live without digital money in the world of speed. We can buy everything from the comfort of our homes with just one click. Digital money travels from one corner of the world to another in less than a second But digital money also has a huge problem Hacking. It is difficult to hack, but not impossible and far from this thing.


Such money launched in 2009 which is impossible to hack. I am talking about cryptocurrency you must have heard the name BITCOIN. Credit cards, Checks, and Online Payments all this is done according to the rules and regulations of the government. But Bitcoin is money that has nothing to do with the government nor is it connected to any Fiat Money (Paper Money), what is there are just some numbers. Due to the non-applicability of any government rule it can be easily used in illegal transactions more illegal transactions means more crime and the more crime, the more damage to a country. Whatever the Bitcoin is, its Block chain Technology is thousands of years ahead of the technology of credit cards and online payments. It is impossible to hack It may take a billion years or more to hack just one bitcoin. You know when Bitcoin launched in 2009 one bitcoin was worth zero dollars its price was only 1$ in 2011 and the price of one bitcoin today in 2023 is 21, 81,570.12 INR. Now whether this is a scam or a real get-rich scheme only time will tell.


What is Real Money?

But once look back at this world how much this world has progressed in such a short time. In just a few thousand years we went from gold and silver coins to invisible money we made this money for our benefit but maybe we are losing it. You work at some place from dawn to dusk. What you get at the end of each month is just some pieces of paper or some numbers that appear on the screen. You have to understand that the world runs on trust, not money. What we see is nothing but an illusion. Now the question arises what should we do?


Money is a part of our life

First of all, you have to recognize real money. There is only one way to recognize real money something that increases in its value over time is Real Money. The value of paper money decreases every year due to inflation and truth be told, this cycle is never going to stop but you can avoid this thing by investing in real money which has a value in itself. You know that no matter how much money there is in this world, if all of it is shared equally among every person that money will go back to where it came from? But Why? Because all the rich people in this world understand money and know it they don't work for money but money works for them and the day you understood it your life will be changed forever. Before doing all this you need to educate yourself financially. The time you waste in cursing the government and inflation spend the same time on your financial education because nothing is going to change you have to change yourself.  The more you learn, the more you earn.


Post a Comment

Post a Comment (0)

#buttons=(Accept !) #days=(10)

Our website uses cookies to enhance your experience. Learn More
Accept !