Reprinted with permission. Money has become a routine part of our lives. Its origin is rarely considered or understood. Money is a claim, clear and simple. Whereas money is often defined as a store of value, medium of exchange or a measure of value, these are its only uses, not what it is.
Money is a claim for something of value.
The original groups of hunter-gatherers didn't need money as they provided only for themselves. Later, trading became more convenient with the use of indirect barter, i.e. trading into a common third-party commodity which is then traded for the intended item. Practically every medium such as sea shells, bananas, cattle, land and metal has been used for the third party commodity known as money. With the advent of indirect barter, i.e. the use of money, trading was made easier and commerce was born. As man's wealth developed, gold and silver became the most accepted medium for indirect barter.