Money History

This is the first time I write in my blog, at first I itself confused what should I write.however, according to the name of my blog so this time I will discuss about the history of money.

In ancient times people did not know money, they just know if they want something they have to look for it by themself.like hunt or go to the woods to look for foods and for their clothes,they collect from  hunting. until one day they are faced with the fact that they can not meet their own needs.examples of people who live in mountain areas will be difficult to get fresh fish from the sea and as well the people who live in coastal areas would be hard to get vegetables.And then created a barter system or exchange systems.but also undergone many obstacles as time progresses because this system embracing balanced exchange of goods whose value plus the difficulty to find people who have goods in accordance with the required .To overcome this, comes the ideas to use certain objects as a means of exchange, objects that have high value and can be accepted by the people or objects is a basic requirement on thah time.example of salt, which was first introduced by the Roman people as a means of exchange even be used for payment.

Although the existing payment instruments but this is still a constraint, as we all know the ancient means of transportation is not as sophisticated as this present time so the objects are used as a means of exchange does not have the staying power that will be damaged if brought to the exchange that takes time long enough.Then came the so-called coin. Metals selected as a medium of exchange because it has a high value so that the public favored, durable and not easily broken, easily broken down without reducing the value, and easily moveable. Metal is used as a medium of exchange for meeting these requirements is the gold and silver. Gold and silver coins are also referred to as a full money (full bodied money). That is, the intrinsic value (the value of materials) of money equal to its nominal value (value on the currency). At that moment, everyone is entitled to forging money, merge, sell or use, and have unlimited rights in storing coins. In line with economic developments, there is a presumption troubles when the development of the exchange which must be served with a coin increases while the amount of precious metals (gold and silver) are very limited. Use of the coin is also difficult to deal large amounts of money that were created the first paper banknotes in circulation is the proof of ownership of gold and silver as a tool / intermediary to conduct transactions. In other words, paper money in circulation at that time the money is guaranteed to be 100% by gold or silver that is stored on the smart gold or silver and can be redeemed at any time with a full warranty. In further developments, the public no longer use gold (directly) as a means of exchange. Instead, they make the "paper-proof 'as a medium of exchange.