Evolution of money - Digital currency

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Evolution of Money - Barter system

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As Humans have evolved over time, Money we transact in exchange of goods or service is also evolved. We will see in detail why was there need to go other system. Barter System: Barter System was in use as early as 6000 BC introduced by Mesopotamia and it was improved by Babylonian's. Bartering is trading services or goods with another person when there is no money involved. If you ever traded 'abc' object in return of 'xyz' object, you have bartered. Advantages: You dont need money to barter. you do not have to part with material items. Instead, you can offer a service in exchange for an item It is flexible. Anything can be traded for anything.  Disadvantages: The desired item only has the value in this medium of exchange. For example, you desired to have apple, you will transact only with the person who is willing to exchange apple. Item exchanged is not quantifiable. Example: 10 apples cant be traded for a single sheep/goat. It was long tedious process...
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Evolution of Money - Coinage

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Bronze age brought world of opportunities to human race. Sophisticated tools made his day to day task easy. Humans were on a journey to make things simple. Out of that quest, Coins were brought to life. Chronology of Coins and its usage: Money in the form of small knives and spades made of bronze was in use in China during the Zhou dynasty, with cast bronze replicas of cowrie shells in use before this. The first manufactured actual coins seem to have appeared separately in India. The first ruler in the Mediterranean known to have officially set standards of weight and money was Phedion.  Minting occurred in the late 7th century BC amongst the Greek cities of Asia Minor, spreading to the Greek islands of the Aegean and to the south of Italy by 500 BC. The first stamped money (having the mark of some authority in the form of a picture or words) can be seen in Paris. Advantages of Coinage: This system solved all the problems of the barter system With coinage, now individua...
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lifestyle inflation and Fire consequences

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 In the year 2012, I moved to Hyderabad for my graduation. When I was not earning, obviously I was dependent on my dad for my hostel fee, college fee, etc. I survived in Hyderabad excluding hostel fee with 3000 rupees. Of that 3000, 1500 for daily transport to college from hostel, and I would go home twice a week that would cost around 200. Remaining amount would go to eating out and buying books and entertainment purposes(There is a weekly theatre attached to my hostel). This continued for next 3 years and in 2015, I got placed in Infosys. My investment journey is listed here . I noticed that back in 2012, 3000 rupees were enough to meet my expenses but now after started earning 20k-30k per month which is 10x of my 2012 expenses, I still feel that I couldn't find any amount left over at the end of the month. This is all about lifestyle inflation. Your lifestyle will continue to grow as your income grows until you forcefully restrict it to stay at the same level. This will hold tru...
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