Money Evolution: From Appearance to Cryptocurrency

The money is the most genius invention of mankind. During its long history, it has repeatedly changed its conceptual design. And each stage was accompanied by a qualitative leap in the development of human civilization. In this article we will talk in detail about money, its history and future prospects.

1. The main functions of money

The Money is fairly universal tool with the help of which you can perform many tasks.

  • Circulation tool. In turnover, money is a mediator. In order to effectively perform this function, money should be easy to deal with, and its transfer from one person to another should be fulfilled as soon as possible.
  • Payment tool. Each product has its own price, money allows to simplify the process of exchange of goods and services significantly.
  • Accumulation tool. Some of the unused funds can be accumulated for the future, but it is very important to diversify risks and not to keep money in one currency, because, in terms of inflation, its purchasing power in future may significantly decrease.

2. The origin of money and its evolution

The money origin is rooted to the times of primitive people. The development of money can be divided into several stages.

  • The first money. The money did not exist as such in human civilization at an early stage of its formation, at that time primitive people had barter. The first elementary monetary funds began to appear at the time of the division of labor. Different tribes used the various goods which were available to them  as the money. For example, cocoa beans in Mexico, animal skins in Siberia, pearls in South America were used as currency, etc. Salt was another valuable resource.
  • Metal money. With the development of civilization, money acquires a metallic form. In the VII century B.C. the first coinage appeared. This format of monetary funds becomes very popular all over the world. The primary materials of which were gold, silver, copper and bronze. This type of money significantly increased the sales turnover between people and brought human civilization to a fundamentally new level. During this period begins the accumulation of large capitals.
  • Paper money. In 910 A.D, in China, the first paper money appeared. The appearance of banks marked the beginning of a new era of market relations. Banks have become major custodians of values. People handed them their money, and received paper certificates in return. This format have become so popular that over the time these certificates began to be considered as money, which we can observe nowadays.
  • Electronic money. A year of 1991 becomes a critical point in history, this is the year when the Internet begins to function. Banks actively pick up this technology and begin to use it after a couple of years. Digital money is much faster and more secure than paper analogues. They are still the most common type of monetary funds.
  • Bank cards. The world’s first plastic card was issued back in 1950, it was  used in order to pay for dinner in certain restaurants. And only in two years after that, the first bank credit card was issued  in the USA.
  • Digital coins. The history of cryptocurrencies begins in the end of 2008, it was the first time when people heard the word Bitcoin. The main feature of cryptocurrency is the lack of a single center that controls emissions and acts as an intermediary in the course of transactions, digital coins also can be mined, i.e., engaged in mining.

3. Prospects of cryptocurrencies

Some experts predict a total collapse of cryptocurrencies, other experts predict the world recognition and almost the transfer of all the wealth of mankind into blockchain. What does really awaits the cryptocurrency industry in the future? In fact, there is not a single person who will be able to predict its further development by 100%. We can only assume certain scenarios based on certain facts.

  • It should be noted that a very technological and a universal technology such as  blockchain lies at the roots of cryptocurrencies. Potentially, it can be used in almost any field of activity.
  • Cryptocurrencies have altered the very essence of the money: no one controls them, they can not be banned or blocked.
  • Even against the background of the deep correction of 2018, large companies, funds and private investors are beginning to be interested in cryptocurrencies.
  • The governments of the largest countries are developing a legal framework for the market. This will allow to promote cryptocurrencies  massively.

Along with that, the mass media is overloaded by bad news which is one of the reasons for the protracted correction. If you look at the cryptocurrency chart in longer term, you can clearly see the liquidity of cryptocurrency assets (20x growth), even taking into account their rollback from peak values by 70-90%.

Source: CoinMarketCap

4. Conclusion

Money is the greatest invention of mankind, they became the catalyst of the progress of human civilization. We are witnessing the formation of a new type of money such as digital coins. Only time will tell whether cryptocurrencies will be able to take a palm of victory and push out paper and electronic money. But it is worth noting that in the long run they have all the chances to do that.

Subscribe to The Coin Shark news in Facebook: https://www.facebook.com/coinshark/