Note
Note: This eBook is a guide and serves as a first guide. In addition, please get expert advice.
Credit
Author :
Dr. Sebastiana Viphindrartin
Universitas Jember, East Java, Indonesia
Dr. Regina Niken Wilantari
Universitas Jember, East Java, Indonesia
Dr. Bambang Hadi Prabowo
STIE Jaya Negara Tamansiswa Malang, East Java, Indonesia
Dr. Budi Sasongko
STIE Jaya Negara Tamansiswa Malang,East Java, Indonesia
Dr. Eddy Priyanto
STIE Jaya Negara Tamansiswa Malang,East Java, Indonesia
Editor :
Suryaning Bawono.S.E.M.Si
Publisher :
Triple Nine Communication
Singapore
Copy Right
©Sebastiana Viphindrartin,Regina Niken Wilantari,Bambang Hadi Prabowo,Budi Sasongko, Eddy Priyanto,Suryaning Bawono
All rights reserved. No part of this publication may be reproduced, stored on a retrieval system, or transmitted in any form or by any means, electronic, mechanical or photocopying, recording or otherwise without the publisher's prior permission.
Published by :
Triple Nine Communication Press
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Chapter 1 The History Of Money
Money was created as a way to make it easier for people to get the things they want. Over time, the way money is used and made has changed. Money is one of the earliest and most significant inventions of civilization, which was essential for commerce development. Without trading money, it is only in the form of bartering. Barter is a relationship between two people who each have something the other wants so that exchange occurs. When you understand the history of money, it helps to understand how to make good choices and trade goods effectively.
The way humans use money has even changed in recent years (2018). Money has been a part of human history for more than 3,000 years, from the origins of bartering to modern money to the current system that continues to evolve. Money has undergone many transformations. Basically, anything that represents value and can be traded for various goods can be money. From beads made from string, seashells, tokens, coupons, and nowadays crypto money appears. A group of people generally receives money in exchange for goods, services, or resources.
At that time, humans did not know money. Humans use cows, sheep, vegetables, salt, and grains as a medium of exchange to get the goods and services needed, which are called commodity money or goods money more than 3000 years ago (Orr, 2012: 14; Hanna, 2015: 48). In 1000 BC China started to produce coins (not coins) or metallic money.
The first coins were created by King Alyattes in Sardis's city in the country of Lydia (now known as Turkey) in 625BC from gold and silver. The first coins ever minted had an image of a roaring lion (Dyson, K, 2014: 116; Choron & Choron, 2011: 33). Coins or coins later evolved into banknotes in the year 1661 AD.
Money was transformed into plastic money in the form of a credit card first introduced in 1946 (Subramanian, 2014: 22; Stockalper, 2016: 44). In 2009, crypto money emerged (Chen, et al., 2018). The emergence of crypto money in 2009 was the beginning of transforming money from banknotes to digitally supported by the inclusion of financial technology that is increasingly digital. In this book, the history of world money from commodity money to digital money is summarized in the "History Of Money Time Line."
Commodity money, generally agricultural products have been used in the traditional economy with the barter system before 3000 BC. The weakness of commodity money is that it is difficult to move or store (Orr, 2012: 14; Hanna, 2015: 48). In 1200 BC, China started to use shells as a means of payment to replace agricultural commodities (Yang, 2018: 120; Choron & Choron, 2011: 14). In 1000 BC, China developed coins in the form of knives or shovels to replace shells as a means of payment to improve commodity weaknesses because metals are more durable than shells and agricultural products (Choron & Choron, 2011; Wu, X.2017).
In 625 BC, King Alyattes in the city of Sardis, Lydia state (currently known as Turkey) developed the first coins made of gold and silver, which tended to be more durable than other metals (Choron & Choron, 2011: 33; Stockalper, 2016: 44; Dyson, K, 2014: 115). In 359 BC, Romans adopted coins to replace bar coins (Hartley, 2016; Sellars, 2013). In 118 BC, China developed fiat money from deerskin (bailupi bi 白 鹿皮 幣) as the beginning of the development of banknotes in the Han dynasty (141 BC - 87 BC) (Choron & Choron, 2011; Chi, C Ting, 2019: 48). In 30 BC, Augustus Caesar standardized Roman royal coins with almost pure gold, almost pure silver, almost pure copper, and almost pure bass coins (Choron & Choron, 2011; Dyson, K, 2014).
In AD 1, China developed banknotes (zhibi 紙幣) made of mulberry bark. Besides being used for reading and writing purposes, the mulberry paper has developed into a bill of exchange in China known as bianhuan 便 便 which is increasingly popular in its time to replace deerskin or bai lu pi bi 白 鹿皮 币 (Lu, 2015: 180; Vogel, 2013). In AD 54 , Nero Caesar reduced the quality of gold and silver coins (debasing gold and silver coinage) by reducing the quality of the authenticity of gold and silver by adding copper (copper) to silver coins and silver to gold coins. The impact of reducing the quality of gold and silver coins is prolonged inflation and is the beginning of the world's first inflation (Lannoye, 2018; Choron & Choron, 2011).
In AD 57, Promissory notes (letter of the promise of payment) made from wooden tablets began to be developed in Rome. The wooden tablet represents the amount of gold and silver written in wooden tablets and can be used as a transaction tool (Kruit, 2017: 209; Belohlávek, 2011: 349). In AD 618, In the Tang dynasty (AD 618 - AD 907) paper money became popular as a representative coin, either gold, silver or copper or the bill of exchange known as feiqian 飞 钱 or bianhuan 便 便. The popularity of paper money is considered safer and easier to transfer (Cheaib, 2018: 173; Rahman, 2014: 106). In AD 775, The Anglo-Saxon Kingdom of England issued sterling currency in silver coins at an exchange rate of 1 sterling equivalent to 1 pound of pure silver or 453.592 grams of pure silver. And since that time, all goods and services in the UK have been valued in terms of sterling, shillings (1/20 sterling), and pence (1/12 shillings) (Naismith, 2012: 90; Gates & Marafioti, 2014; Parker, 2016).
In AD 960, Banknotes became the main currency of the Northern Song Dynasty (960-1127) with the Jiao Zi (交 子) and Qian Yin (钱 引) currencies (Perkins, 2013; Lu, Y, 2015). In 1260, Kublai Khan issued the Chao currency (Zhongtong Chao) as the first banknote of the Mongol Empire (Yuan dynasty) as legal tender with gold or silver backing. The chao currency's influence spreads to Asia and Europe (Spek & Leeuwen,
Impressum
Verlag: BookRix GmbH & Co. KG
Texte: Triple Nine Communication
Tag der Veröffentlichung: 04.07.2021
ISBN: 978-3-7487-8728-0
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