12 Jul 2024 2 min read Finance

How Much is It?

Over centuries, Homo Sapiens were entranced by a certain entity: money. Quintessential of and the imaginary ruler of the world, the common flimsy white paper cuts hold the whip over the unique world. Nonetheless, does this assortment of thin metal and paper hold value? Answering takes multiple stages, but what is money?

Cacao beans and other novelties were used as currency at one point and another.

The mention of money is enough to flood one’s brain with banknotes and gold ingots. Currency is a global concept, but it wasn’t always in the form of coins and notes. Before the obliteration of the Aztec reign, cacao beans and strings of cloth were utilised for currency and trade. Cigarettes were used as a form of currency in Prisoner of War (POW) and concentration camps while current US prisons use packs of mackerel. However, ‘tis gold that shakes the world.

When Hernan Cortes and his band of conquistadors travelled to Mexico, he suffered from a heart disease cured only by gold. The creation of coins dates to 2020 years before the 500 BC eradication of the Aztecs. In modern-day Turkey, the Kingdom of Lydia minted the first gold coins produced by electrum. These coins were forged by combining gold and silver alloy and inspired the Roman Empire to incorporate coins into their currency. Banknotes appeared when Chinese merchants’ arms gave up carrying bags of coins, and instead resorted to receipts of payment.

In most countries, banknotes are worth more than coins despite metal being more valuable than paper.

Money holds authority over all owners though the value of thin scraps of metal and unlaminated paper is questionable. Due to the Cognitive and Agricultural Revolution, humans were able to trust in invisible orders and items such as God whereas other animals were unable to believe in objects invisible to their eyes. In this case, humans believe that money is worth the designated value. In Australia, a 100 dollar note is 100 Australian dollars despite a 1 dollar coin being worth more than the note in terms of materials. In the Kingdom of Lydia, the king told all villagers that a gold coin was worth a silver stater: they agreed despite gold being far more superior to silver.

Gold and money has captivated humanity for millenia, throwing a leash around humans’ necks. Be that as it may, currency's worth is unspecified. With their creativity, humans defy the obsolete minds of foragers and believe in a value beyond the generic paper note and metal circle. It is only with belief one can see the value of money: it is invisible to the eye.