Topic: Money History - Introduction to Ancient Exchanges - page 2. (Read 412 times)

Thank you for such an interesting digression into the history of money. It is noticeable how money became more convenient and mobile. There is no doubt that the future belongs to electronic money, which can be sent in any amount to any place in the world in seconds. It may not necessarily be cryptocurrencies, they may not be able to win a competitive part of the market, but centralized electronic money is unlikely to disappear.

This statement is partially wrong.In the middle ages,gold was so valuable that only a small portion of it was enough to buy lots of stuff.Plus,people back then had horses,weapons and armor,so it wasn't that hard or dangerous to transport precious metals.
OP,your forum thread would be great for teaching kids about how money got invented  and how they were improved during the ages.However,most of the people in the forum know everything about the history of money,economics and finance,which makes your thread kinda pointless.

Money has been in a steady dynamic change over the years. When some friends tell me bitcoin is a pyramid scheme or is going to crash, I remind them on the evolution of money, many wonder how can these wonderful banks be someday be taken over by another form of money other than the current paper money. Well I just let them know robots are taking over humans, and smartphones have shutdown cybercafe and the list is endless.

The article is great and quite short and explains things very well but the pictures are making it a bit more difficult. I would say making all the pictures a bit more same size and smaller would have helped your deal, plus having a bit more bigger font for it and also making all of the pictures and words more central instead of leaning left would help as well.

This is coming from a content writer of 5 years, I am not saying anything bad for your article at all, it is definitely doing what it was intending to do so there is really nothing wrong with what you wrote, just more eye candy would work a lot better for getting more views. However I think it is a good start for a new writer, if you want to keep writing more and get more views I am sure you will get better over time.

Money needs to have values attached to it to be considered valuable. This is why printing money out of thin air without corresponding value is such an abomination. If you keep printing money out of thin air for someone, make sure the person is/will contribute something that is "proportional" to the money he/she receives otherwise the money has little to no value and that could create potential problems for everyone else that uses the money.

People who work hard on farms(for example), produce quality foods but earn little from the foods are the types that really deserve some money printed out of thin air... same as people who create good applications that lots of people use but make little from the applications.
Printing money out of thin air for someone (or potentially bad business) that will likely not pay back or be profitable is what makes the culture of printing fiat money out of nothing bad.
You could however print money for sustainable welfare schemes if the beneficiaries will be willing to contribute in whatever way to the society. The difference between them and the employed is the ease of getting a job and getting paid. There  definitely will be some kinds of jobs that need to be done somewhere but society probably don't find "profitable" short-term

The point of reading history is to use if for the future, I think Fiat money is going to disappear soon since digital and crypto currency came up. China is one of the greatest economy powers. So, expanding crypto currencies in China will effect the world and as you can see It's already started.

Hey abhiseshakana,
I've changed the title into something else, thank you for the recommendation. 
Mostly I created this thread because of some people they didn't know these basic stuff and what "backed by gold" actually used to mean.

The right title should be money history instead of economic history  . History is not just to be told but it can be a lesson and we analyze the influence of previous decisions that ultimately affect life today and then we wish if we can go back to the past and change history. Then let it go and make an analysis tool so that we can succeed in the future.

From the history above it can be seen that printing banknotes then fiat money creates new purchasing power from something that is not valuable. Because the money has no price but is used to reflect the price of all goods, this is where injustice arises because something that is worthless (fiat money) can be exchanged for (something valuable). Fiat money does not provide immediate use but can be used to buy useful goods. Fiat money also provides unfair benefits in terms of issuance, known as seigniorage, which is the return on the issuance of the money to the money issuing authority.

https://en.wikipedia.org/wiki/Seigniorage

These days we are using currencies while some people don't know about how they came out and here I'm going to explain it.
In ancient ages people had had some jobs like farming and shepherding and whenever a farmer wanted some milk/meat from shepherd he had to give him some farming product instead. Here when a farmer wanted to trade his farming product for mild he didn’t know how much farming product he must give in return.

So, people started using valuable stuff and valuable metals such as gold and they created coins. But, if they wanted to spend a huge amount of coins they had to carry a huge amount of it and this wasn’t good for security.

Here the first generation of the exchanges (Ancient Exchanges) came out, when you wanted to carry 10 million coins with you from Boston to Paris you could give all your coins to an exchange in Boston and he could give you a receipt with signature and …, instead of carrying 10m coins you had to just carry a piece of paper with you and you could give the receipt to another exchange in Paris who and receive your coins on Paris.

Just after few people started to trade receipts instead of giving them to the exchanges and trade coins and here is how the money banknotes came out but they were backed by gold (Here is how people saying currency backed by gold these days). In 1944, after meeting of 43 countries, they set something called Bretton Woods system, in this monetary system every single USD worth rate of $35/ounce. In other words the US government said they are ready to exchange any amount of gold with this rate of exchange.

But between 1968-1973 this monetary system had some problems because the US government could supply this huge amount of gold and in the end on 1973 any currency could be directly exchanged into another currency of another country. In other order since that time fiat currency or non-gold backed currency appeared. Today we know them as money banknotes and they are backed by the economy and political and … power. But people find out there are some problems with the money banknotes. For example, in order to provide budget deficit governments started to print a huge amount of banknotes and printing huge amount of banknotes lowering value of the money.

So, digital currency appeared and got accepted by people (Credit Cards). Today you can transfer millions of dollars to another country using digital currencies, meaning you don’t need a suitcase full of money to transfer your money to another country with old fashioned way. But you may ask what the difference between digital currency and encrypted currency? Digital currency is centralized system and total supply can be changed with decision of banks/governments and can be controlled by them. While, crypto currency is decentralized and total supply is fixed (For example, there are only 21m bitcoins) and can’t be controlled by any government because it’s completely peer to peer.


I tried to make this article real short. So, you won't spent too much time for it.