Every day you buy something for you or for others. Imagine if there was no currency how you could buy food, clothes etc. You were thinking how was the feeling that there is no currency and you want to buy some food. There was an Ancient system which allow you to trade with others. It was not so comfortable but there was no second option. The name of that system called BARTER SYSTEM.

What was The Barter System?

Before the invention of currency people exchanged goods and services and got goods and services in return. For example, if you have some cotton and you need some flour you will go to market and give cotton to shopkeeper and in the return, he will give you flour.

Barter System

Difficulties in The Barter system!

It was a useful system but there were some difficulties in this system. You must have to borrow a huge load of goods with you and it was not easy and comfortable enough. And need a big labor if you want a big deal.

Golden and Silver Coins

After using barter system for a long time, golden and silver coins declared as currency. According to the history in 643 to 630 B.C. Lydians started producing coins, made with mixture of gold and silver, and then started a metallic coinage. Some nations prefer silver coins on golden coins. This currency made trade much easier than barter system, but there was also a problem with this currency that it was also hard to handle a big amount for a single person.

Gold and Silver Coins