Why money was invented

Why and when was money invented? If you want to know more about it, this article is for you!

The thing is that money as such existed even before the invention of coins, and, apparently, we don’t know who the first to make it was. The reasons why money was invented are also quite understandable.


It is likely that something like money existed in human societies at all times. For example, the school of money was known even in these ancient states like Sparta, Rome, Carthage.

Why was money ever invented? Fur money was used to pay for purchases in ancient Scandinavia. They also paid the penalties.

The laws of that time said that offender must give a fox pelt for verbal abuse and a sable for physical injury.

Fur played the important role of money in the Middle Ages in Europe, and especially in ancient Russia during the Mongol time. The fur was even used in England, along with the silver penny.

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Thus, the city of Chester paid an annual fur fee during the reign of Edward the Confessor (mid XI century). North American Indians used beaver skins as money. What happened later was that with the arrival of white people all the beavers were already instinct and they had to get the new animals from Europe.

South American Indians chose raccoon skins as money, and Indians chose elk hides.

The leather money made of deerskin was printed in China during the reign of the Han Dynasty (206 BC).  And to make the counterfeit impossible they used the rare white deer hides. According to the imperial order white deer were caught and placed in strictly protected enclosures.

greek coins

No one would dare to hunt the white deer. In different countries, all sorts of goods were used as money. Even people played the role of money. Not long ago, the slave was the monetary unit in Central Africa. It was equivalent of 30 pieces of paper or six bulls. The female slave cost less.

Currency had a lot of exotic forms, until finally, the civilized world made it metal.

Metal was an extremely convenient currency: it can be divided into the required number of parts stored for any length of time.

And most importantly, you could make a lot of useful things that are easily bought or exchanged for the right product out of it.

No wonder that the first metal money didn’t resemble the usual coin in its shape. They were in the form of the conventional weapons or tools.

Even when people started to make metal money on purpose, there was still a long time before they forgot the habit to shape the coins like that.

money invention

As for the material, they tried almost all more or less available metals and their alloys. But the preference once and for all, without a vote and a referendum was given to gold. There was hardly a single person, who could resist the glitter of the yellow metal.

Roman philosopher Lucius said that gold would be the best material and that no one would mind it.

The appearance of the weight measures pushed people to the next step. They started making weight units - coins. The first coins were simply small metal ingots with a specific shape and weight. Fraudsters took advantage of it a lot.

Cutting a piece of gold or silver and fusing them into a new bar was not too difficult. It was almost impossible to notice such damage.

Money began to shape up to complicate make those tricks impossible. So this way the coins appeared.  They were handy, compact, with a fixed weight and size.

coins ancient

The quality of the metal was good and later there appeared some kind of drawings on the coins.

The first coins appeared in ancient China in VIII- VII centuries BC. Those were the bronze circles with a hole for stringing a rope. In the VI century BC precious metals displaced bronze.


To my mind money were invented because of previous unsatisfactory barter system. Early people bought and sold goods with the help of barter, they could exchange a cow, for example, for anything of equal value in the market. People used grain, teeth, feathers, shells, elephant tusks and even skulls for barter. But people`s needs seldom coincided, and society want more practical system of exchange, that is why it was necessary to invent another monetary system or others words money. Firstly, they were metal coins, after that paper bills were appeared.

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The measure of value. This is the basic function of money, they are the universal equivalent of the value of services or manufactured goods. To compare the different products enough to cause their value to the same units of money — a single scale.

A medium of exchange. Money greatly facilitate settlements between the manufacturers — with the advent of coins and then banknotes, the exchange of goods became much easier. If before the sale and will certainly coincide in time, now, thanks to the advent of intermediary of money, there is no need to simultaneously exchange goods for goods, and to interrupt the production process.

The means of accumulation. Being the equivalent of any commodity, the money can accumulate, creating savings. There is no need to create a store for the products, it is sufficient to stack them equivalent to the Bank .Cash is what allows a person to create wealth. Cash reserves smooth out the unevenness of economic life that leads to stability.

Answered 1 year ago.

Day after day we go to work for them, give them away in the store and often it is because of them fighting. There is no such person who would live in society and not used the money. At the same time, it is difficult to find someone who knows the history of their origin.

I wonder what the exact answer to the question nobody knows. Historians say that the money appeared almost simultaneously with the emergence of social order, and the need for them is felt the most distant of our ancestors. Seeing the difficulties in the exchange of grain, furs and metals, people needed to come up with a single payment system.

The money people knew in the days of Sparta, of Ancient Rome and Korfagen, except they were different. In Ancient Scandinavia is the money used fur, and every kind of fur had its own value. Much later people realized that for the exchange of goods easier to use metal coins. In a time when paper money was not in sight, and the ruble deposits more could be done, people cast the first iron coins.

However 2000 years ago the Chinese invented banknotes of parchment; paper is still used today for the manufacture of familiar roubles. While now ruble deposits are a reliable way of investing money, then the paper version was considered to be a risky contribution and has not been able to take root in the Chinese Ming dynasty.

Answered 1 year ago.
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