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| Money arose and how humans were dealing previously |
Article elements:
- How old man was dealing before the first coins were issued
- When the first circulation of currencies originated between humans
- Coins
- Banknotes
- Digital Currencies
Human history is full of events and developments, which changed the course of the life of the old man, and evolved significantly until it reached its peak, in our time, one of the most important developments of human beings, financial dealing that has passed through the ages, to several radical shifts in the fate of dealing between individuals, which we will recognize On some of the things that have been observed, in the history of human interaction among them, through the ages prior to the present era.
How was the old man dealing before the issuance of the first coins?
The old man in dealing with one system, which is the exchange of goods, so that one product is exchanged for the other such as substitute rice, cereals, weapons, leather or salt for other goods,
This was a universally accepted trade style among members of ancient societies.
When the first circulation of currencies originated between humans
When the first circulation of currencies originated between humans
When did the first currencies circulated among humans?
The first coins in circulation among humans originated in China more than 1100 BC, and the people of China noticed that the old tools used in weapons and heavy tools caused harm to their owners, and the creation of coins made of bronze. Of metal in circular forms, this was the beginning, for the launch of coins.
Banknotes:
Europeans continued to trade goods against coins, until 1600 and then switched from coins, to banknotes, through banks where the money was issued, to people who deposit gold and precious pieces of depositors in banks, in return they get paper currency, They are carried and replaced with gold pieces again in case they wish to replace them.
Banknotes became valuable and individuals were able to buy products and commodities through them, and became circulating among members of society, and the printing of digital currencies shifted from the supervision of banks to the supervision of States and governments, and governments remained authorized to take the decision to print money, and control it entirely, according to the country's economy And according to international laws governing the global market.
Banknotes were tied to the size of gold in the country, imposing on the country the total banknotes printed compared to the size of precious materials of gold, whenever there is a lot of gold, the state can print a lot of money.
It developed in America and changed completely in 1971. The state relied on the existing economy, and the production of the dollar, in exchange for the boom of the economy, instead of the size of the existing gold, and the result is the greater the economy, the more the value of the dollar currency.
All countries have now abandoned the idea of gold reserves, and most countries rely on the strength of their economies, and are evaluated globally for this approach.
Currencies:
Cryptocurrencies are a new term that has emerged in recent years, and has been increasingly heard in Arab countries in the past few years. The idea of cryptocurrencies, by creating currencies, can not be touched by hand, but can be traded through the Internet, and buy products through them, and converted to currencies Paperless versus the value of people trading in cryptocurrencies.
Cryptocurrencies are collected in servers (dedicated computers). These currencies are connected to systems that allow people to buy those currencies and put them in virtual bank accounts online. A dedicated market is created for those currencies, in which people trade currencies among themselves.
The price and the value of a currency are determined by the number of persons affected by the currency, the higher the number, the higher the value, and the most famous of these currencies (Bitcoin - the currency of the atrium).
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