Have you ever thought about what the essence of money is and how it appeared in our society? After all, it is quite obvious that Robinson Crusoe on his uninhabited island did not need gold coins, because he could not eat them or derive any benefit from them for himself.
Even if, for example, Robinson exchanged fish for boards near Friday, the banknotes would not have been useful to them. People have studied the necessity and essence of money for centuries, but have never been able to come to a common opinion.
In order to understand the meaning of the existence of money, it is necessary to understand the main reasons for the exchange of goods. After all, it is barter that underlies commercial relations. It is obvious that the exchange occurs only because both parties want to profit from the transaction. Based on this, one can explain the essence of money as follows: the exchange of a certain amount of banknotes for the necessary goods that can satisfy human needs.
The great scientists of all time made a mistake when they assumed that the exchange should be equivalent. In fact, the bottom line is that both sides of the transaction value differently what they exchange. For example, bartering one fish net into ten logs suggests that they have different values for both subjects.
In the course of historical evolution, people have a need to come up with an equivalent exchange that would be suitable for any goods. That is how the first forms of money appeared: tobacco, sugar, salt, cattle, nails, beads and so on. All these products in different countries were universal, that is, those that could be exchanged for any other necessary good.
Later, symbolic banknotes appeared. The costs of their production are often inferior to their purchasing power (bargaining chips, paper money). Then the universal product acquired forms of credit money, which represented certain obligations to other individuals and legal entities.
The nature and origin of money in a historical context can be studied for a very long time, but the most important thing is that awareness of these two categories helps us to understand that monetary resources are nevertheless a specific commodity, no matter what they say.
Finance is not an abstract concept that can exist separately from a particular product. Money is a commodity that is in great demand mainly as a medium of exchange in every corner of the world. The essence of money in the modern world cannot be overestimated, because it is on them that the entire world economy stands and functions. There is not a single person who could survive even one full day without using rustling papers, voiced coins or credit cards.
In the modern world, there is not a single person who would be indifferent to money, because it is they who reward their owner with power and increase their social status. No one can dispute the fact that having a certain amount of money, an individual can buy not only goods and services, but also time for enjoyment: travel, communication, art and so on. It is with the main resource — finances — that you can provide a cloudless and stable future for yourself and your family.
But do not forget that the essence of money, namely the desire to possess unimaginable amounts, can do more harm than good. What do the money give us? The ability to satisfy your needs, power, prestige and much more. The history of the formation of funds is very rich and interesting for research and study, because this product has passed in its development a very long and thorny path: from the simplest forms of exchange of goods to modern credit funds.