Hello dear steemians,
I am Muhammad Sohail, I belong to Pakistan.
Today i want to share some important and related information. I hope it will add to you knowledge.
The First topic i want to discuss is:
How Money was Invented?
In ancient times there was no proper medium of exchange. If someone need the thing which he don’t have he exchange it with the goods which he posses in surplus quantity. This is called #Barter Trade System.
Then the man explored the precious metals like gold or silver etc. Then the coins of that gold or silver were used as medium of exchange. That was the 1st shape of money which was used as medium of exchange.
It spread in all civilised countries. Even the international trade was conducted with these coins.
How Currency Notes Were Issued
In ancient times the security arrangements were not proper, no law and order was prevailing. There was rule of power. The people snatch the wealth of others at their own power.
In those days the goldsmith were rich people. They have their own security systems. They were trustworthy also.
People started to keep their gold coins in their safe custody.
The goldsmith issue the slips mentioning the amount of coins to the concerned persons. People started to use these slips to purchase thing from other people. These slips were started to be considered as money.
The currency notes are the refined form of those slips.
This is the picture of British Pound. It is written on it “ I promise to pay on demand a sum of ten pounds”
It is that old ancient statement which was written by goldsmiths on the slips.
All the currency notes are still backed by some securities. It may gold or any other foreign exchange, that security make it money.
How Crypto will Become the Medium of Exchange
In old times no one was having any idea that these slips will become currency notes. But it happened and it spread all over the world.
Then bank draft was Invented, then ATM and Credit card was invented, then mobile banking was Invented.
In mobile banking our money is in shapes of unit only.
People can purchase anything online by transferring these units to the vendor.
The same is the case with crypto currency.
In very near future crypto currency will be used as an acceptable medium of exchange.
Thanks for reading.
Always grateful to our mentor:
@dobartim
And dear friend Dr. @enveng