Historical And Socio Economic Advancements Of Humanity Essay

1129 Words Mar 12th, 2015 null Page
The history of money dates back to the very dawn of human civilization, and as early as 9000 BC both cattle and grain were used as money or as a means of trade and barter. Trade and barter has been the key to many technical and socio-economic advancements of humanity. The ancient Greek philosopher Aristotle considered the meaning of money and he decided that every artifact has two potential uses. The first use is the original purpose for which the artifact was created, and the second purpose is to think of the artifact as an object to sell or trade.

Money has provided us with a means of carrying out trade, which in the past has involved a ‘physical’ medium of exchange. Money can be defined as any clearly recognizable item of perceived value that can be acknowledged as payment for services and goods within a market. As mentioned, in early forms of civilisation possessions, that were directly useful in themselves such as cattle and grain, were used as money, but in addition attractive items such as shells, feathers and beads have been exchanged for more useful possessions. Gold and silver coins also fall into this category. This therefore begs the question, what gives a ‘virtual’ currency such as Bitcoin value? The banking system and fiat money brought the control of the monetary system and money supply under the control of governments and the central banking system, giving them almost total control of most aspects of society. The global financial crisis and other economic…

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