A Brief History of Money: From Favors to Bitcoin and Beyond
For most people, the word “money” brings to mind banknotes and coins. Yet, we all know that a banknote is just a piece of paper, and a coin is merely a piece of metal. So, what exactly is money? Money is nothing more than embodied trust! To truly grasp this concept, it helps to take a quick journey through the history of money.
Around 2.5 million years ago, our ancestors lived in small, tight-knit communities where cooperation was essential. They gathered food, hunted, and shared tasks collectively, creating a system that ensured security for everyone. For instance, if someone returned from a hunt or gathering empty-handed, others in the group would share their resources. The principle was simple: today, I share some of my fruit with you, and tomorrow, you’ll return the favor.
Even without money, these communities operated on what we might call an “economy of favors.” The primary purpose of forming such communities was to establish and sustain this mutual support system. This exchange is as old as humanity itself and can even be observed in some animal species.
