The first steps towards currency
The history of currency helps us to understand
how money works today
How did currency begin to solve the problems of bartering?
From 1200 B.C. to 50 B.C. different currencies
were invented around the world. The Chinese used a type of
shell called Cowrie shells and metal tools as money, while
the Athenians used nails and the Saxons, sword blades. Even
polished volcanic rock was used as money in parts
However, there were still problems. Objects weren’t
easy to divide into smaller amounts, so you couldn’t
make up differences in amounts (or give people change), and
with so many different currencies being used, people couldn’t
always agree on what things were worth.
The objects were also easy to carry and tough
so could be kept in your pocket (or sack!) and be stored for
a long time.
So there were still lots of problems with using
these objects as currency. Coins and notes were the way forward.
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