Money!
Love it or hate it, it’s a cultural-socio factor in all modern economies.
But where did money come from, when was money invented – and how has it become such a force in society?
The history of money is long and complicated – and incredibly interesting – but here are the basics.
I believe the earliest known (not necessarily oldest really) forms of moneyare from Ancient Egypt. No paper money, just coins created from metals such as silver and gold, used as an alternative to barter – also probably used as symbols of high status. – Answerbag.com
Barter / Exchange System.
The world used to operate on a barter system. People would exchange goods for services, goods for goods, and services for services. Societies who operated under this kind of economy are now called “gift economies.”
However, as society started to develop beyond hunting and gathering, the gift economy became too cumbersome for general use.
The original idea of money is generally credited to the Babylonians and their neighboring states, who developed the modern economic system as we know it today, with rules of law designating the use and abuse of a monetary system, as well as the idea of “debt” and what it meant.
NOTE: Debt has been around for thousands and thousands of years! No wonder it’s so good at being a problem today.
A long history of Making Money.
However, there is also evidence that money stretches back even further than the Babylonians – what’s known as the codex of Ur-Nammu, way back 2050 BC by the Sumerians, speaks about a monetary unit involving shekels as a component of mina, the largest form of currency that the Sumerians had.
While the codex of Ur-Nammu is the earliest extant law code known, there is evidence that societies before it had the concept of money.
So, essentially, the straight answer to the question of, “who invented money?” is that nobody knows for sure.
We don’t know because the concept has been around so long that it predated current known documentation. The true answer is that humans invented money – money is one of the first concepts that we as a species collectively invented and set to use.
Money problems are old hat for humans – probably older than hats themselves!
And… when you want to make more money (in your business) – review the digital money maker team here.
Related articles to who invented money
FAQs
Around 700 B.C., the Lydians became the first Western culture to make coins. Other countries and civilizations soon began to mint their own coins with specific values. Using coins with set values made it easier to compare values and trade money for goods and services.
Who made the first money? ›
Historians generally agree that the Lydians were the first to make coins. However, in recent years, Chinese archaeologists have uncovered evidence of a coin production mint located in China's Henan Province thought to date to 640 B.C. In 600 B.C., Lydia began minting coins widely used for trading.
Who is the owner of money? ›
Since property is an enjoyment protected by law, it is as such the enjoyment of two goods: the good which is an object of law and the law itself which satisfies the need of legal certainty. This means that a person is not only the owner of money but he has also the right to claim it.
Why does money exist? ›
medium of exchange, something that people can use to buy and sell from one another. Perhaps the easiest way to think about the role of money is to consider what would change if we did not have it. If there were no money, we would be reduced to a barter economy.
What is the oldest money in the world? ›
After the British pound, the oldest currencies still used today are the Serbian dinar and the Russian ruble.
Who created the $1? ›
The first $1 notes (called United States Notes or "Legal Tenders") were issued by the federal government in 1862 and featured a portrait of Secretary of the Treasury Salmon P. Chase (1861-1864).
When did humans start money? ›
The first metal coins date back to the 7th century BCE in Lydia (modern Turkey) and China. In China, metal coins were made of bronze and shaped like farming tools. In Lydia, coins were made of an alloy of gold and silver called electrum. Lydian staters were the first coins to be officially issued by a government body.
What did people use before money? ›
Before money people used bartered goods as payment; animal hides and teeth. Livestock was the most valuable commodity. The word cattle comes from the Latin words "caput" and "capital" meaning property.
What is the true origin of money? ›
Money has been part of human history for at least the past 5,000 years in some form or another. Historians generally agree that a system of bartering was likely used before this time. Bartering involves the direct trade of goods and services.
What if money didn't exist? ›
If there were no money, we would be reduced to a barter economy. Every item someone wanted to purchase would have to be exchanged for something that person could provide.
With just one coin currently in existence, the gold 1849 Double Eagle is considered the rarest and most valuable coin in US history.
What is the strongest currency in the world? ›
The Kuwaiti Dinar is renowned as the strongest currency in the world. Introduced in 1961, it has maintained a commanding presence due to Kuwait's substantial oil reserves, which account for a significant portion of its economic output.
Who creates money? ›
Banks create money by lending excess reserves to consumers and businesses. This, in turn, ultimately adds more to money in circulation as funds are deposited and loaned again. The Fed does not actually print money. This is handled by the Treasury Department's Bureau of Engraving and Printing.
Who originally wrote money? ›
“Money (That's What I Want)” was written in 1959 by Tamla Records founder Berry Gordy with staff songwriter Janie Bradford.
Who created new money? ›
In most modern economies, money is created by both central banks and commercial banks. Money issued by central banks is a liability, typically called reserve deposits, and is only available for use by central bank account holders, which are generally large commercial banks and foreign central banks.
When was money money invented? ›
"Money Honey", the first electromechanical slot machine created in 1964, developed by Bally Technologies.
What is the oldest bill in the world? ›
The oldest surviving banknotes are examples of the "Da Ming tongxing baochao" (Great Ming Circulating Treasure Note), which were first printed during the reign of the Hongwu Emperor (1368–1398) – probably no earlier than 1375.
