The Evolution of Money summary

You probably know that Sir Isaac Newton is one of world history’s most influential physicists, but did you know he also had a huge impact on our currency?

Indeed, Newton is responsible for developing the relationship between money and its weight.

No one enjoys being in debt, but debt itself is a necessary part of a functioning economy.

Debt can’t exist without negative numbers. And the first person to demonstrate the use of negative numbers was Brahmagupta, an Indian mathematician who explained their purpose in his seventh-century book, The Opening of the Universe.

The discovery of the Americas was, of course, a big deal for folks in the Old World, and part of that was due to the economic impact it had.

After Hernán Cortés conquered Mexico in 1521, Spain soon learned about the financial chaos that too much of a good thing can suddenly cause.

Paper money has come a long way. It’s now a complex mix of numbers, watermarks and even holograms.

The history of banknotes goes back to the early eighteenth century when France was facing some tough economic times.

If you’ve taken a class in economics, one of the first names you’ll have encountered is that of the eighteenth-century philosopher, Adam Smith. In his desire to create a universal theory of finance, he gave birth to the science of economics.

Smith laid a very solid economic foundation, but our understanding of the relationship between money and its value has certainly evolved since then.

Here’s a funny thought: one day, a government employee shows up at your door with an envelope filled with cash and says, “Enjoy.” Pretty unrealistic, right?

Actually, a number of economists believe that providing people with extra spending money is a very realistic way of helping economies bounce back from recessions, like the one that followed the 2007 crisis.

Things have been changing fast in the new millennium, and it’s not over yet. Before long, things like piggy banks and coin jars might be a thing of the past.

So far, the Bitcoin is the closest we’ve come to a truly universal currency, and it’s also a threat to the traditional banking system.