Discover how money made
History of Money progress possible
Why history of money
Money changed the world
through division of labor and
Money is the foundation of
Money IS Power! - the power to
evolve mankind, but we have to
set money free..to continue
enjoying the beneﬁts.
Why money was
To make life easier. :)
With money we are able to buy a
wider variety of goods than
before - in the barter economy -
where one good is directly trader
And expand time - we can save
money for future use, wait for a
What is Money?
Medium of Exchange - a
commodity that is valued and
demanded for its own use, before
becoming used as money.
• Store of Value - a beneﬁt of
money - being able to store the
products of our labor.
• Unit of Account - another
beneﬁt - being able to make
At ﬁrst people traded directly one
good for another - barter
Then some goods were used as
medium of exchange to obtain
other goods - indirect exchange.
Today we are still using a
sophisticated form of indirect
Barter means that one good is
directly exchanged for another.
For example, a ﬁsherman may
exchange a bucket of ﬁsh for 50
Limitations are that the scope of
goods to trade for is very limited.
For instance, it can be harder to
ﬁnd a willing buyer for a violin
than bread. And the time of trade
is limited - I can not be sure that
my fresh ﬁsh will be demanded in
Money allowed to trade a wider
variety of goods. Now a violin
maker could exchange his violins
for money and then buy whatever
he needed. He no longer had to
convince a shoe-maker to trade
shoes for violin.
Money could be saved for later
use, for a better trade
opportunity. Thus freeing up time
for innovation and specialization -
resulting in more and better
Photo by Vladstudio.com
How money changed
Division of labor, specialization
Joe the hunter now can trade his
game for money, buy all he needs
and save part of it for future. He
doesn’t have to make all of his
equipment himself anymore. He
can buy it with money. Thus he
can spend more time hunting and
improving his skills. And through
improving skills and knowledge
he can get more game in shorter
time. His quality of life has
improved. His world has
Money originated in free-market
as a valuable commodity.
Can you imagine a ﬁsherman
trading a basket of ﬁsh for a small
piece of paper? Or would he
rather choose a bushel of grain?
The answer is obvious, because
grain is valuable. A good will
only be used as money if it is
Our paper money used to have
value - it could be exchanged for
gold. Not anymore. Now it is just
a small, worthless piece of paper.
A better question
Here is a challenge for you -
don’t ask “how to get more
money”. Instead, ask yourself:
How can we return to a sound
money - a money of value?
(hint: read about gold standard)