Table of ContentsSome Negative Points of the Barter SystemSteps of Valuation of MoneyLivestock MoneyAdvantages of Metallic MoneyPaper MoneyReferencesThe barter system is the means of exchange between two people for the exchange of goods and services according to their needs. They complete their needs by exchanging goods and services. This system had been in use for centuries before the invention of money. Barter: exchanging goods or services for other goods or services without using money (Oxford English Dictionary) Goods used as money. Alcohol, almonds, amber, barley, butter, rags, barrels, rice, salt, tea, slaves, teeth and much more. Say no to plagiarism. Get a tailor-made essay on “Why Violent Video Games Should Not Be Banned”? Get the original essay The history of bartering dates back to 6,000 BC. Introduced by the tribes of Mesopotamia, barter was adopted by the Phoenicians. The Phoenicians traded goods with those located in various other cities across the oceans. The Babylonians also developed an improved barter system. Goods were exchanged for food, tea, weapons and spices. Sometimes human skulls were also used. Salt was another popular item traded. Salt was so valuable that Roman soldiers' salaries were paid with it. During the Middle Ages, Europeans traveled the world trading crafts and furs for silks and perfumes. Colonial Americans traded musket balls, deer hides, and wheat. When money was invented, bartering did not end, it became more organized. Due to the lack of money, bartering became popular in the 1930s during the Great Depression. It was used to obtain food and various other services. This was done through groups or between people who acted like banks. If items were sold, the owner would receive credit and the buyer's account would be debited.Some Negatives of the Barter SystemDivisibilityDurabilityPortabilitySometimes the value of goods is different from each other.Lack of double coincidence of wantsLack of a measure commonality of valueIndivisibility of certain goodsDifficulty in storing valueDifficulty in making deferred paymentsLack of specialization.Steps of valuing moneyWorld without moneyAsian cutleryCoinsCurrencyBankingMoney travelMobile paymentsLivestock moneyThe word livestock and capital comes from the same Latin word that est capitalis.The standard size and weight make tea "bricks" an ideal commodity in parts of Asia. In Mongolia, 12 to 15 bricks would buy a sheep. In Tibet, 120 to 150 people bought a camel. In some places, tea cartons still circulate as a means of exchange. People used livestock as a source of trade. Everything is paid for by the exchange of livestock, like fines for murder and everything else. Food and Tobacco Food and tobacco are also used as barter system but it is not a good medium of exchange due to spoilage, taste and many other reasons like sometimes taste preference is different and sometimes eaten by pets. Clothes It is a good way of exchange because everyone needs clothes to wear but people face difficulties with size and color. Each person has their own body structure, size and color preference. Coinage In 600 BC, King Alyattes of Lydia minted the first official coinage. The first coin was made from electrum, a mixture of gold and silver. The image was