BARTER SYSTEM(BEFORE 3000 BCE):
In ancient times, people used to exchange goods for goods. The problem with this system was that there was no standard value, therefore it was hard to decide fair exchange. This system is still in use in some situations.
BRONZE COINS(3000-700 BCE):
After 3000 BCE, Bronze coins started to emerge in countries like Lydia(modern Turkey). Bronze coins introduced the idea of standardized value. Another advantage of this system was that you can accumulate wealth as bronze coins are durable.
GOLD AND SILVER COINS(AFTER 700 BCE)
$XAG and $XAU coins were used by Romans, Greeks, Islamic Caliphates and Chinese dynasties. Since then Gold and Silver have become safe havens and ultimate store of value.
PAPER CURRENCY(7TH CENTURY CE):
Paper currency was invented by China, however it became popular for global trade during 1600s to 1900s. Later, paper currency was backed by gold. But in 1971, USA abandoned the gold standard and paper currency became fiat currency.This meant that governments could print as much money as they want and fiat currency kept on losing its value over time.
CRYPTOCURRENCY(2008):
Then came the legend of Satoshi Nakamoto. He invented bitcoin in 2008 and the world changed forever. $BTC had a limited supply i.e 21 million tokens and it had no central authority. It is based on blockchain technology which has transparent and immutable ledger.
