In the beginning of human economics was the practice of barter system. Goods for goods. Then came the currency or money which actually differ from the coins and bills we use today but it started with commodities like cowry shells, precious metals, beads, corn, barley, and other things
that were valued and desired by the human population. Next came the coins and bills. Now, credit cards and other form of electronic or digital cash were added into the mix of acceptable currency or medium of exchange.
Did you know that the value we put on any currency is just a pigment of human imagination? Why is it that a 20 US dollar bill has buying power of 40x than that of a 20 Filipino Peso when in truth they may have been manufactured using similar paper and ink materials? Of course, we take into consideration a lot of economic factors which again are based on human standards. Or to make it more simple, why is it that a $20 is more valuable than $10 despite the fact that both are from the same currency made out of similar paper and ink materials that differ only in the design and number printed on them? This is so because we were made to believe that since the one bill was stamped with a higher number, its follows that its value must be higher as well. In other words, we are no longer concern about what material the bill was made out of but on the number printed on it.
