For millenniums, till date, the way people have paid for goods and services have changed dramatically. Money is the only factor that keeps the world in motion. Human transactions and trades date back even before the stone age. The entire process of trading one’s goods for grains or food gave way to the ultimate innovation of humankind -- money. Although there are a lot of speculations surrounding the origin of money, it is the only human invention that still connects us to the processes and beliefs of our ancestors of survival.
Money is a shape-shifting entity. From nickels and pennies to cents and dollars, the physical representation of money is in constant change associated with the evolution and civilization of humankind. At present, according to the statistics provided by the United Nations, there are about 179 different official currencies worldwide.
People have different perceptions and definitions for money. According to the majority, money is defined as a convenient unit of exchange that can be stored as wealth that has greater regard to value. This is just a typical definition provided by the masses. But there are more complex definitions based on finances, the flow of the market, and the value of a particular region.
In the modern age, many economists believe that the revolution of digitalization can alter the physicality of money. Digitalization has opened gateways for people to access digital money that can be stored through the access of the internet. The digital markets are rapidly growing and are one of the most searched and accessed online marketplaces.
Origin of money
Master economists from Aristotle to Nouriel Roubini have all debated and agreed on the fact that money emerged as a sign of trading goods and services from a prehistoric barter economy. For example, before the term money came into existence, our ancestors sold their products like grains to others with salt as a tradeable source, based on their needs. To be more specific, if one person has excess oat grain and needs a fishing net, they look for possible traders that accept oat grains to trade with their fishing net. This gave rise to a common entity known as money. With money, anything in need can be purchased, or anything in excess can be sold.
Money became the simplest solution for hard work and survival. With time, the money gained a physical form, such as shells or coins. One of the earliest coins discovered belonged to the Chinese Zhou dynasty (1046 - 771 BC), and the coin was a cowry shell with logos sculpted with knives, spades, and other tools. Slowly, these shells turned into coins made from gold and silver and each region around the globe had its own specific design in a round, hexagonal, or octagonal form of gold/silver coin.
The establishment of the banking system
As time passed, it started to transport coins from place to place. The Chinese people came with a fantastic idea of storing everyone’s currency and issuing a piece of paper that soon became the paper cash we use today. The great explorer Marco Polo was so impressed with this method, and he spread it to Europe and other parts of Asia. Thus, Banks became established. Also, in Italy and England, people started storing their coins with the goldsmith and, in turn, got a receipt for the value of the coins. The same token became what we call a cash note now.
Rise of Credit and Debit cards
As we step foot into the modern world, people started getting scared to carry a lot of cash and coins with them due to various reasons. The main reason was the security of their money. The emerging banks around the globe considered this factor. To support their customers, banks started issuing cards that can store the value of their balance as bits and bytes and can be used from anywhere around the locality. In the United States of America, The First National Bank of Seattle issued the first carding system in 1978. This was followed by other banks around the US and also around the globe.
Banks also brought in many good plans and inventions with regards to the cards issued. Issuing of Credit Cards, investment plans, and so on were carried out in the upcoming years.
Entering the digital realm of cryptocurrencies
A new financial revolution came into existence when Satoshi Nakamoto invented the first Bitcoin in 2009. Cryptocurrencies are online virtual money that is worth millions on today’s date. Cryptocurrencies became the centre of attraction between investors from all around the globe. Due to its security, decentralized ledger technology known as the blockchain, and highly profitable results, Cryptocurrencies are the new face of currencies in the modern world.
One of the best features of using and investing in Cryptocurrencies is that there is no mediator or any interpreters like the banks or the governments. The users can transfer, trade, and store their cryptocurrencies with a high-end technology known as peer-to-peer transactions. Users also have their own storage areas known as crypto wallets that help them hold their cryptocurrencies safely. Digitalization has favored millions of people, and many economists now are debating whether digitalization is a boon or a bane to the global economy.
Although there are a lot of speculations about the marketplace being unpredictable and unsafe, people and developers around the globe are working hard on creating an engaging platform that people can use to trade their cryptocurrencies for profits. According to other sources, by 2030, the number of people engaged in the online marketplace can skyrocket from 42% to 70%, simply due to the fact that people would start to adapt to the modern surroundings.
Whether the digital market can be favorable to the global economy, people are satisfied with the modern technology for building a credible online marketplace and will invest more in the online marketplace for years to come.
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