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The evolution of money: from barter to crypto

Learn about the evolution of money.

Updated over a year ago
Arkmon evolution of money explained barter to crypto

Barter System

The earliest form of trade was the barter system, where goods and services were directly exchanged for other goods and services. However, as societies grew, the limitations of this system—like the "double coincidence of wants" (both parties wanting what the other offers)—became evident.

Commodity Money

Recognisable and universally desired goods, like salt, spices, or cattle, started to be used as a medium of exchange. These commodities held intrinsic value and became widely accepted as trade facilitators.

Metal Coins

Around 600 B.C., the first metal coins appeared in Lydia (modern-day Turkey). Coins made of precious metals like gold and silver were durable, divisible, and had intrinsic value, making them an effective medium of exchange.


​Paper Money

Originating in China during the Tang Dynasty, paper money offered a lighter, more portable alternative to metal coins. This revolution was followed by the establishment of central banks, which regulated the issuance of notes.


​Banking & Checks

As banking institutions developed, the need arose for a system that could move vast sums without physically transferring money. This led to the creation of checks, which acted as a written order to a bank to pay a specified sum from the drawer's account.


​Electronic & Digital Money

The 20th century saw rapid advancements in technology. Credit cards emerged in the 1950s, followed by online banking, ATMs, and electronic transfers, making monetary transactions faster and more convenient.


​Cryptocurrencies

Introduced with the advent of Bitcoin in 2009, cryptocurrencies marked a monumental shift in the concept of money. Operating on decentralized blockchain technology, they offer increased transparency, security, and eliminate the need for intermediaries like banks.


In essence, the journey from barter to crypto reflects humanity's constant quest for more efficient, secure, and universal means of trade. As technology and societies evolve, it's thrilling to ponder where the future of money might lead us next.

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