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A quick look at the evolution of money

From the interchange of goods for goods without proper evaluation, to commodity money, our understanding of money has evolved with time.

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A quick look at the evolution of money,Naira drops to N387.65 to the dollar as crude oil price plunges to $27,Naira drops to N387.65 to the dollar as crude oil price plunges to $27

Money has come a long way. From the interchange of goods for goods without proper evaluation, to commodity money, our understanding of money has evolved with time.

Trade by barter began as the fundamental of currency exchange when people began to exchange their excesses for other necessities. The items that were traded were typically in their elemental form and catered to the basic necessities of the individuals involved in the trade. As such, there was no value assessment of the items exchanged. This posed a problem and subsequently led to the invention of commodity money.

Commodity Money

Certain items became more in demand than others. In time, they became a form of currency. This is what is described as commodity money. Some examples of commodity money used in many parts of Africa and in South America are salt, cloth, cattle, and cowries. However, commodity money soon grew impractical as a result of alteration in the economic value of these items. Humans soon evolved to using metal money.

Metal Money

Metal was originally used in its elemental form, but in time, they were first moulded into slabs and then, coins. They were also made into trinkets and accessories, which were also valuable. Metal also replaced stone and wood as the materials used for weapons and utensils.

As the use of metal began to evolve, weight measurement became the means of assessing its value. However, in order to make trading faster and more convenient, the value of the slab of metal was inscribed into them.

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The coins that resemble what we have now were first introduced around the 7th century B.C. Over the centuries, metal money was made from different metal and metalloid materials. Some of the more prominent and most valuable ones include gold, silver, and bronze.

However, currency evolved to become more about the inscriptions of them than about the value of the metal itself, in order to regulate and control the circulation of money. Since the value of the metal became meaningless, humans realized we didn’t have to use metal at all.

Paper Money

The first banknotes were issued by the Bank of Brazil in 1810. The value of the note was written by hand just like we do with cheques. Soon, the technique was replicated in print across the world. Paper money has evolved in the quality and durability of the paper used over the years. Currently, both paper money and coins are the two most used forms of money.

Representative Money

Both paper and metal were used as representative money before we evolved our current system. Representative money, as briefly mentioned above, worked just like cheques. They were used as receipts for precious material. They were mostly made with inexpensive materials like paper or copper and represented a fixed value for precious metals, like gold or silver. They were issued by a bank or by the government and could be exchanged for goods or services.

Fiat Money

Money has taken several shapes over the centuries. However, monetary systems have also varied distinctively. There are three common types of monetary systems – commodity money, representative money, and fiat money. Currently, most of the world runs on a fiat monetary system. This system is regulated by congruent legislative laws. Fiat money uses similar material as representative money. But instead of storing gold or silver in the bank, fiat money represent value in themselves.

This method was developed when banks realised that many people were not coming back to collect their gold or silver deposits and instead, did most of their transactions with the representative receipts.

While fiat currency has no intrinsic value in itself, the value is in the scarcity of it, regulated by the Government.

The Advent of Digital Currency

The pattern of money evolution shows that currency evolves due to factors that reflect human need for convenience. When the invention of new material and better understanding of trade, currency has changed form over the years. Money was not just invented by a stroke of genius, it evolved from necessity, and the evolution of it shows us that humans will always find ways to merge currency with the realities of its socio-economic systems. We live in the digital age, and most of our basic necessities have been digitalised. So the question is, why not money?


This article is in partnership with QuidaxQuidax is a European based digital assets exchange with a focus on Africa. We provide a seamless platform for users to send, receive, buy and sell cryptocurrencies using their local currencies.

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Coronavirus

COVID-19 Update in Nigeria

On the 20th of September 2020, 97 new confirmed cases and 3 deaths were recorded in Nigeria.

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The spread of novel Corona Virus Disease (COVID-19) in Nigeria continues to record increases as the latest statistics provided by the Nigeria Centre for Disease Control reveal Nigeria now has 57,242 confirmed cases.

On the 20th of September 2020, 97 new confirmed cases and 3 deaths were recorded in Nigeria, having carried out a total daily test of 2,609 samples across the country.

To date, 57,242 cases have been confirmed, 48,569 cases have been discharged and 1,098 deaths have been recorded in 36 states and the Federal Capital Territory. A total of 482,321  tests have been carried out as of September 20th, 2020 compared to 479,712 tests a day earlier.

COVID-19 Case Updates- 20th September 2020,

  • Total Number of Cases – 57,242
  • Total Number Discharged – 48,569
  • Total Deaths – 1,098
  • Total Tests Carried out – 482,321

According to the NCDC, the 97 new cases were reported from 12 states- Lagos (46), Kwara (12), Rivers (11), Adamawa (4), Niger (4), Ogun (4), Osun (4), Ekiti (3), Imo (3), Kaduna (3), Plateau (2), FCT (1).

Meanwhile, the latest numbers bring Lagos state total confirmed cases to 18,943, followed by Abuja (5,551), Oyo (3,231), Plateau (3,231), Edo (2,611), Kaduna (2,348), Rivers (2,243), Delta (1,799), Ogun (1,766), Kano (1,734), Ondo (1,597), Enugu (1,234), Ebonyi (1,038), Kwara (1,025), Abia (881), Katsina (848), Osun (817), Gombe (799), Borno (741), and Bauchi (689).

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Imo State has recorded 562 cases, Benue (473), Nasarawa (448), Bayelsa (394),  Jigawa (322), Ekiti (317), Akwa Ibom (288), Niger (254), Adamawa (234), Anambra (232), Sokoto (161), Taraba (95), Kebbi (93), Cross River (85), Zamfara (78), Yobe (75), while Kogi state has recorded 5 cases only.

READ ALSO: COVID-19: Western diplomats warn of disease explosion, poor handling by government

Lock Down and Curfew

In a move to combat the spread of the pandemic disease, President Muhammadu Buhari directed the cessation of all movements in Lagos and the FCT for an initial period of 14 days, which took effect from 11 pm on Monday, 30th March 2020.

The movement restriction, which was extended by another two-weeks period, has been partially put on hold with some businesses commencing operations from May 4. On April 27th, 2020, Nigeria’s President, Muhammadu Buhari declared an overnight curfew from 8 pm to 6 am across the country, as part of new measures to contain the spread of the COVID-19. This comes along with the phased and gradual easing of lockdown measures in FCT, Lagos, and Ogun States, which took effect from Saturday, 2nd May 2020, at 9 am.

On Monday, 29th June 2020 the federal government extended the second phase of the eased lockdown by 4 weeks and approved interstate movement outside curfew hours with effect from July 1, 2020. Also, on Monday 27th July 2020, the federal government extended the second phase of eased lockdown by an additional one week.

On Thursday, 6th August 2020 the federal government through the secretary to the Government of the Federation (SGF) and Chairman of the Presidential Task Force (PTF) on COVID-19 announced the extension of the second phase of eased lockdown by another four (4) weeks.

READ ALSO: Bill Gates says Trump’s WHO funding suspension is dangerous

 

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Economy & Politics

Godwin Obaseki wins Edo State governorship election

Incumbent governor, Godwin Obaseki emerged winner in the Edo State gubernatorial election.

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Oil theft gulped $1.35 billion in first six months - Obaseki 

Independent National Electoral Commission(INEC) has declared Godwin Obaseki the winner of the Edo State gubernatorial election today.

Mr. Obaseki will return as the Governor of the state for a second term.

The results were declared by INEC on Sunday afternoon after the results were counted from all LGA’s on Saturday.

Obaseki had 307,955 votes, which was enough to be declared a clear winner over Ize-Iyamu’s 223,619 votes.

Obaseki took to his Twitter handle to thank the people of Edo State for their votes. He stated,

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“Words fail me in saluting our teeming supporters who displayed immense courage in the face of threats, intimidation and brutalization. The collective will of Edo people made it possible for us to triumph over godfatherism. Congratulations to all Edo people. This is our victory!”

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Tech News

TikTok’s owner seeks $60 billion valuation in US deal as Oracle, Walmart take stakes

Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global.

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Tiktok world’s most valuable startup is worth more than $100 billion

TikTok’s parent company, ByteDance is seeking a valuation of $60 billion for its video-sharing app, as Oracle Corp and Walmart Inc take stakes in the technology firm’s US operations to address the security concerns of the Trump administration.

According to a report from Bloomberg, Oracle and Walmart have rights to buy 12.5% and 7.5% respectively of a newly established TikTok Global under an agreement that has gotten the approval of President Donald Trump.

The duo US firms would be paying a combined amount of $12 billion for their stakes if they reach an agreement with TikTok for the asking price of $60 billion.

READ: Oracle wins bid to acquire TikTok’s US operations after Microsoft offer was rejected

The final valuation had not been set as the parties worked out the equity and measures for data security.

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It was also stated that China is yet to approve the deal, although regulators are said to have expressed support for any transaction in which BtyeDance still maintains control of its valuable recommendation algorithms and other proprietary technology.

It would be recalled that President Donald Trump, had threatened to ban the ByteDance owned TikTok, over national security concerns, but which some analysts see as part of the row between US and China. This pressured ByteDance into the deal as they looked to avoid the ban by the US government.

READ: ByteDance, Tiktok’s parent company, now worth over $100 billion

The US officials had expressed concern that the personal data of as many as 100 million Americans that use the app were being passed on to the Chinese government.

ByteDance turned down the proposal of a full buyout from Microsoft Corp but rather agreed to Oracle’s offer in which the Chinese parent company will still maintain a majority stake in the technology firm.

Trump told reporters on Saturday, ‘’I approve the deal in concept. If they get it done, that’s great. If they don’t, that’s ok too.’’

READ: President Trump dumps plan to force foreign students to leave the US

Trump’s new stance appears to conflict with his earlier executive order for China’s ByteDance to divest from the video-sharing app’s operations in the United States.

ByteDance is in a race to avoid a ban on TikTok after the US Commerce Department said on Friday that it would block new downloads and updates to the app from Sunday.

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According to market researcher, CB Insights, ByteDance is the most valued private start-up in the world at $140 billion. Under the proposed deal, ByteDance may end up owning as much as 80% of TikTok Global, which include the app’s operations in the US and the rest of the world excluding China. Venture firms like Sequoia Capital and General Atlantic may also acquire equity in the new business.

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