Why money succeeded the trade by barter system.

[CALVINDOL]

Majority of us here may have known or heard about the trade by barter system possibly in schools or might have read it in textbooks . By definition a trade by barter system is a kind of commercial activity system in which goods are being exchanged for goods , rather than money being exchanged for goods . That is to say if an individual has beans and is probably in need of rice he or she must look for someone who has rice and is also probably in need of beans . This system of business transaction is absolutely very hard and cumbersome because in most cases there is not always an individual readily available to exchange what he has for what you want . In the study of commerce this is known as the problem of double coincidence of wants .

Another obstruction and hindrance of the trade by barter system is that it was totally unbearable for individuals to measure the value of the goods and services in which they exchange for another . That is to say , if an individual need phone and has kola nuts to exchange for it , there is every possibility that the value of phone is way more higher than that of kola nuts but because value cannot be measured at that time , transactions like this could still be carried out . As a result of these problems and hindrances , money was introduced into the system which make it easy for individual to measure values of their assets and properties and to know which one is of high value and which one is of low value . And also the existence of money actually make it very easier for individuals to accumulate wealth and riches .

 

[Jasz]

Barter dates back to the dawn of civilization. In fact, the earliest records of trade were a man trading his oxen for a sheep. The same basic principle still holds true today—people trade things they have for things they want. But why are goods and services exchanged? Why is something worth x amount of dollars to me, and y amount to you?

The answer lies in our evolutionary past. At one point, humans were hunter-gatherers. Our ancient ancestors hunted and gathered food, and in turn, their society provided for them: shelter, warmth, protection from predators. They traded with each other because they needed each other. They needed what others had to survive.

This is not unlike the trade we currently see on markets around the world today. When someone trades something of value, they are doing so because it will help meet their own needs or wants: perhaps they need money to buy food or clothing; perhaps they want more material possessions like a television or a video game console.

We are all still hunter-gatherers at heart, whether we live in the United States or anywhere else in the world.

 

[TOZZIBLINKZ]

First of all I want to commend and congratulate you for the way you present your article it was so inspiring and you already said the main reason why mummy had to succeed the trade by barter system that was practice during ancient times . But if there was anything we must know about the trade by barter system that was practiced before money was brought into existence it was the fact that it was actually very cumbersome and unbearable because you are being so we'll have to carry huge and bulky commodities from one place to another seeking for individuals to exchange them for another commodity whom they may be in need of .

It is actually true that money has impacted the world in the sense that we do not need to carry our communities around looking for individuals to exchange them with , rather we can use money which is one of the possible and portable ways that our numerous human wants and needs could be satisfied and made comfortable . And also value of goods and services could be detected with the use of money but during the trade by barter system it was very hard for goods and services value to be easily detected .