Bartersystemhistory
2 views
2 Discussing
Hot
Latest
What is the Barter System?
The barter system is a method of exchanging goods where people trade items without using any currency.
The Journey: From an Unorganized to an Organized Barter System
Historical evidence from before 6000 BC shows that the barter system was highly unorganized and came with several important problems, such as:
1. Perishable vs. Non-Perishable Exchange (Coincidence of Durability)
For example, Ali has milk, and Noman has a goat. They both want to trade. Ali wants the goat, and Noman agrees to accept milk in return.
But there's a problem — the goat can survive without getting spoiled for a long time, whereas the milk will go bad quickly.
This issue is called the “Coincidence of perishables vs. non-perishables.”
2. Location Problem (Coincidence of Location)
Suppose Noman and Adil want to exchange houses.
Noman agrees to shift to Adil’s location, but Adil does not like the location of Noman’s house, so the exchange cannot take place.
This issue is known as the “Coincidence of Location.”
3. Mismatch in Needs (Coincidence of Wants)
Let’s say Ali has wheat and Noman has rice.
Ali wants to trade wheat for rice, but Noman doesn’t want wheat — he needs milk instead.
This is called the “Coincidence of Wants”, a major barrier in barter trade.
Human Innovation and Economic Progress
Despite these issues, human beings have always found solutions over time. They tackled the difficulties and improved trade and economy step by step.
Organized Barter in Ancient Civilizations – 3000 BC
By 3000 BC, civilizations like the Indus Valley, Egypt, and Mesopotamia emerged.
As civilizations evolved, they developed language, culture, trade systems, laws, and city management — all of which played a role in making the barter system more organized.
Governments started keeping records of trades.
Example:
1 Ox = 20 sacks of wheat
Such agreed-upon rates helped make the barter system more structured and efficient.
#Bartersystemhistory
#Moneyhistory
#Cryptoknowldge
#Write2Earn
The barter system is a method of exchanging goods where people trade items without using any currency.
The Journey: From an Unorganized to an Organized Barter System
Historical evidence from before 6000 BC shows that the barter system was highly unorganized and came with several important problems, such as:
1. Perishable vs. Non-Perishable Exchange (Coincidence of Durability)
For example, Ali has milk, and Noman has a goat. They both want to trade. Ali wants the goat, and Noman agrees to accept milk in return.
But there's a problem — the goat can survive without getting spoiled for a long time, whereas the milk will go bad quickly.
This issue is called the “Coincidence of perishables vs. non-perishables.”
2. Location Problem (Coincidence of Location)
Suppose Noman and Adil want to exchange houses.
Noman agrees to shift to Adil’s location, but Adil does not like the location of Noman’s house, so the exchange cannot take place.
This issue is known as the “Coincidence of Location.”
3. Mismatch in Needs (Coincidence of Wants)
Let’s say Ali has wheat and Noman has rice.
Ali wants to trade wheat for rice, but Noman doesn’t want wheat — he needs milk instead.
This is called the “Coincidence of Wants”, a major barrier in barter trade.
Human Innovation and Economic Progress
Despite these issues, human beings have always found solutions over time. They tackled the difficulties and improved trade and economy step by step.
Organized Barter in Ancient Civilizations – 3000 BC
By 3000 BC, civilizations like the Indus Valley, Egypt, and Mesopotamia emerged.
As civilizations evolved, they developed language, culture, trade systems, laws, and city management — all of which played a role in making the barter system more organized.
Governments started keeping records of trades.
Example:
1 Ox = 20 sacks of wheat
Such agreed-upon rates helped make the barter system more structured and efficient.
#Bartersystemhistory
#Moneyhistory
#Cryptoknowldge
#Write2Earn
Login to explore more contents