The Evolution of Money

Money has evolved significantly throughout history, beginning with the barter system where direct trades of goods were prevalent. This system faced limitations, such as the 'double coincidence of wants', which made it inefficient and local in nature. As societies advanced, they transitioned to using collectibles like shells and beads, leading to the abstraction of money, which allowed for easier trade. Ultimately, the introduction of gold as a universally accepted form of money revolutionized transactions, setting the stage for the eventual development of paper money, which further enhanced trade across distances.