The barter system to sea shells:

The origins of money as we know it today began via the barter system.  In ancient times the direct trade of goods fueled a primitive economy.  The limitations of trading physical goods had to be improved.  It just wasn’t practical to walk around with a cow to trade for a barrel of fish.  Feathers, stones, and animal skins were early forms of currency to trade for goods but the most improved form was the use of sea shells.  Dating back to the 13th century BC, Cowrie shells were the dominant form of money for thousands of years.  Cowrie shells were durable, light, and easy to string together, ideal for trading.

 

 

 

 

 

More about Cowrie shell history here…

 

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Metal coins; the link to modern money:

The introduction of metal coinage dates back some 2500 years ago.  The Chinese and Europeans began shaping pieces of metal as a form of currency.  Gold, silver, and bronze became means to build empires with.   China, India, and Lydia (modern day Turkey) are known to have the first forms of metal coins.

More about ancient coins here…

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A paper promise:

The use of modern day paper money began as bills of exchange or a ledger system.   The basics of paper money is promise to pay at a later date.  This innovation lead to the early days of banking as we know it.  The use of a paper promise provided a revolutionary form of credit, medium of exchange, and a store of value.

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