Barter history

 Barter history

What is barter :

Barter is based on exchanging goods for each other so that the price of the good is the same. When a person needs a certain good, he agrees with another person to exchange it for a good that he owns in excess of his need. For example, if you need an amount of meat from your neighbor, you can replace it with an amount of fruit.

The development of barter and the beginning of its problem :

With the increase in population and the diversity of products, the volume of exchange between people has increased. In each village there was a common hut that was considered a central market, where traders handed over their goods to the market administration for bartering. At the end of the day, traders and producers come to receive their payments after deducting debts and taxes.

As the population increased and time progressed, the barter process became more complex. People began to look for new ways to calculate debts and taxes, which prompted them to think about finding new solutions to this problem.

Trying to end the era of barter :

As products became more diverse and the population increased, bartering became more difficult. Therefore, people began to use a new, standardized equation to determine the value of products exchanged. They used shells, animal fur, and even elephant tusks as a way to price products. For example, an elephant tusk is worth 100 bags of wheat, etc.