I often think about the fact that the objects we use to represent currency have no actual practical utility outside of their representation of “money”. But why did we begin using this system in place of exchanging good and services with one another? At what point did humans see fit that rounded metals and rectangular sheets of paper had an assigned representation of value that could be exchanged for goods and services?
In: Economics
Paper money starts as notes of promise (bond) to allow retrieval of a named amount of valued substance from safe storage. Coins are stamped for certification of a degree of purity and amount of weight of the metal in question. With some metal currencies, eg. copper, the monetary item itself was used as raw stock for tool making. Needless to say, paying for something substantial in copper coinage might require a wagon and a strong draught animal to pull it. So much lighter to use a paper note.
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