IndexSome Negative Points of Barter SystemMoney Valuation StepsLivestock CurrencyAdvantages of Metallic MoneyPaper MoneyReferencesBarter system is the medium of exchange between two people for exchanging goods and services according to their needs. They complete their needs by exchanging goods and services. This system was used for centuries before money was invented. Barter: exchanging goods or services for other goods or services without using money (Oxford English Dictionary) Goods that are used as money. Alcohol, Almonds, Amber, Barley, Butter, Fabrics, Barrels, Rice, Salt, Tea, Slaves, Teeth and much more. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay The history of barter dates back to 6000 BC Introduced by the tribes of Mesopotamia, barter was adopted by the Phoenicians. The Phoenicians bartered goods with those found in various other cities across the oceans. The Babylonians also developed an improved barter system. Goods were exchanged for food, tea, weapons and spices. Sometimes human skulls were also used. Salt was another popular item traded. Salt was so precious that the salaries of Roman soldiers were paid with it. In the Middle Ages, Europeans traveled around the world to trade crafts and furs for silks and perfumes. Colonial Americans traded musket balls, deer skins, and grain. When money was invented, barter didn't end, it became more organized. Due to a lack of money, bartering became popular in the 1930s during the Great Depression. It was used to obtain food and various other services. This was done through groups or between people acting similarly to banks. If any items were sold, the owner would receive credit and the buyer's account would be debited. Some Negative Points of Barter System Divisibility Durability Portability Sometimes the value of goods are different from each other. Lack of double coincidence of desires Lack of a common measure of value Indivisibility of some goods Difficulty in storing value Difficulty in making deferred payments Lack of specialization. Steps of valuing money World without monetary currency Asian cutlery Coins Currency Banks Travel with money Mobile payments Livestock Currency The word livestock and capital are derived from the same Latin word which is capitalis.The standard size and weight made tea "bricks" an ideal cash commodity parts of Asia In Mongolia, 12-15 bricks would buy a sheep In Tibet, 120-150 bought a camel In some places tea bricks still circulate as a medium of exchange. People used livestock as a source of exchange. Everything is paid with the exchange of cattle like fines for murder and everything. Food and Tobacco Food and tobacco are also used as a barter system, but they are not a good medium of exchange due to spoilage, taste and many other reasons, such as sometimes the taste preference is different and sometimes they are eaten from pets. Clothes It is a good medium of exchange because everyone needs clothes to wear, but people face difficulties in terms of size and color. Each person has their own body structure, size and color preference. Coin Coin In 600 BC, King Aliaxes of Lydia minted the first official currency. The first coins were made with electrum, which was a mixture of gold and silver. The image was printed on top. Please note: this is just an example. Get a custom paper from our expert writers now. Get a Custom EssayAdvantages of CoinsGood Storage SourceCountlessLong LastingGood