The fascinating story of money, what it is, how it came to be, and how it’s made today.
The Story of Money
1. The Early Days
Barter System
- Before money existed, people traded goods and services directly. Example: A farmer might trade grain for a blacksmith's tools.
--The problem? It was hard to find someone who wanted what you had and had what you needed.
2. The Birth of Money
- People started using items with universal value as a medium of exchange:
-- 'Cowrie shells' :
Used in Africa and Asia.
-- 'Precious metals':
Gold and silver became popular because they were durable, portable, and valuable.
- Early coins appeared around '600 BCE' in 'Lydia' (modern-day Turkey). - These coins were made of a mix of gold and silver called 'electrum'.
3. Paper Money
- The first paper money appeared in 'China' during the Tang Dynasty (7th century).
- It was easier to carry than heavy coins.
- Paper money was backed by precious metals stored in banks.
- Europe adopted paper money much later, with banknotes issued in 'Sweden' in 1661.
4. Modern Money
- Today’s money comes in three forms:
1. 'Physical Currency' :
Coins and paper money.
2. 'Bank Deposits' :
Digital money stored in banks.
3. 'Cryptocurrency' :
Digital money like Bitcoin, not controlled by any government.
(*stay tuned for the next episode about it)
How Money is Made
1. Coins - Materials :
Coins are made from metals like copper, nickel, and zinc.
- Minting Process:
a. Design :
Artists create designs for the front and back.
b. Blanks :
Metal discs (blanks) are cut to the correct size.
c. Stamping :
High-pressure machines stamp the design onto the blanks.
d. Polishing :
Coins are cleaned and polished before being circulated.
2. Paper Money - Materials :
Modern banknotes are made from cotton or polymer, not regular paper.
- Printing Process :
a. Design :
Includes security features like watermarks, holograms, and microprinting.
b. Printing :
Special presses layer designs, colors, and security elements.
c. Cutting :
Sheets of printed banknotes are cut into individual bills.
d. Inspection :
Each bill is checked for defects.
3. Digital Money
- Digital money is created through electronic transactions.
- Banks and governments control how much digital money exists, ensuring it matches the economy's needs.
Interesting Facts About Money
1. 'World’s Oldest Currency' :
The British pound is the oldest currency still in use, dating back to '775 AD'.
2. 'Largest Banknote' :
The largest legal banknote is the '100,000-peso note' from the Philippines, issued in 1998.
3. 'Plastic Money' :
Countries like 'Australia' and 'Canada' use polymer banknotes, which last longer and are harder to counterfeit.
4. 'Cryptocurrency Revolution' : Bitcoin, created in '2009', was the first decentralized digital currency.
Stay Tuned for next episode about Money : Cryptocurrency
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