Why was money invented
Money is the measure of the most important parameter defining a nation’s status, its economy. Right from the early days of humanity, people felt the need of resources. The desired resources could be available for free in their environment, or could be in possession of a fellow human being. Obviously, there had to be some kind of a ‘give and take’ mechanism to dictate the transaction of resources. This is precisely from where the idea of having an entity such as money originated, although it took a long time to reach the era of coins and paper currency notes.
In primitive ages, a mechanism known as the barter system was used by people to carry out their mutual transactions. In this system, they exchanged goods and resources, based on their interpretation of the worth of these entities. Another pretty interesting system of exchanges involved articles such as cattle, elephant tusks, mollusc shells, whale teeth, etc as alternatives of money. However, there were inherent flaws in these systems. There was no uniformity and standardization involved in these methodologies. Moreover, the intricacies of transactions was only going to increase with the advent of development and unearthing of more and more resources. And then, there were many regional variations associated with the perceived worth of goods and articles. This usually led to unsavoury complexities in all transactions. To cut a long story short, people wanted some sort of uniformity to govern their transactions.
As the age of administration swayed over the human race, rulers tried to bring in the desired sense of standardization though the implementation of the system of coins made of gold and other precious metals. Society got a lot more organized with the invention of the concept of money, and there was no stopping the prominent civilizations from streamlining it further. Rulers like Genghiz Khan are attributed with the invention of the concept of paper notes.
Over the years, the concept of money has become the most important fabric of the modern human society. Money is the measure of value, and is likely to aid humans in conducting their businesses and transactions for ages to come.