Money is used all over the world as a medium of exchange or a unit of measurement. It is also used as a storehouse for wealth. Because of money, people can understand how much goods and services cost, they can actually trade for goods and services, and people can actually save for other things that they may need. This has resulted in people trading forex, goods and other services across continents because money is accepted as a form of payment and people will exchange it accordingly.
A long time ago, people never used any money to exchange for goods and services. Instead, there was bartering, a situation where someone had to give something in order to get something in exchange. We can only assume that such exchanges would take time as you would have to find someone who thinks that the trade is fair.
Salt, animal skins, as well as weapons were the main traded goods for goods and services. Amazingly, this system of trade is still used in some parts of the world.
Later on, the Chinese started making miniature replicas of tools that were cast in bronze and these were used as a form of exchange instead of using the actual tools. These were later replaced by the miniature tools in circle shapes. These were to become the first coins. After that, Turkey then made the first minted coins.
Coins and Currency
It was the King of Lydia, Alyattes, who minted the first official currency back in 600 B.C. Electrum was the main component in the coins. This is a mixture of gold and silver that happens naturally. These minted coins were then stamped with pictures, which helped determine the denominations.
The Chinese were the first ones to move to paper money around 700 B.C. Later, banks used notes for transactions. People could now take notes to the bank where they would receive their face values in either silver or gold.
Now, we make use of mobile payments, as well as virtual money. This has allowed a lot of people, including forex traders, to make payments on the go. With this, people don’t need to carry any cash with them. All they need to do is use their mobile devices or computer.