Last updated on March 25th, 2021 at 03:02 am
Last Updated on March 25, 2021 Posted by Colonial Acres Coins
When talking about paper money, there is no shortage of those who believe that it is nearing its end. On the other hand, a vast number of people are of the opinion that it will never die. There are a number of reasons why paper money was, is and will most likely be just as important in the near future. Some of these reasons are because it is accepted almost everywhere, it is versatile, convenient and its use can’t be that easily tracked. Keep reading to learn about why it would be unwise to let go of it in the near future:
- Economic control
- Benefits over coinage
- Substitute for value
Economic Control
The main factor that decided whether or not people accepted paper banknotes was whether they could ultimately exchange them for something truly valuable – for instance, silver or gold. That trust was often lacking across the world, especially in North America and Europe. Just about anyone could print paper money even if there was nothing supporting the currency. In order to prevent the oncoming chaos, national governments stepped in to regulate the printing of paper money. Such a move gave the state a never-before-seen level of control over the economy and an influence on prices and economic activity.
Benefits Over Coinage
Marco Polo visited China in the late 13th century and returned to Europe with stories of a society that used paper money. He was ridiculed for it as the people of that time preferred to use money with “substance” – or at least something that felt like it had substance (coins). Only after several hundred years did people recognize the convenience of carrying money in the form of banknotes that could be folded into a pocket, as opposed to chests or sacks filled with coins.
Substitute for Value
Even though paper money was first used in 11th-century China, the concept of “printed” money goes back even further. Originally existing in the form of ownership titles and deposit receipts, people were able to use it for payments as opposed to hauling around gold bars or livestock. Also, people could pass on those pieces of paper as payments to third parties. Such methodology made commerce considerably easier and more convenient and also helped economies evolve beyond the simple barter system.
Just Starting Your Paper Money Collection? Head Down to Colonial Acres Coins
Getting into coin and paper money collecting is a beautiful way to occupy your free time. If you’re just getting started, dealing with reputable individuals and industry professionals is a crucial step towards becoming well versed in this art. If you’re looking for a place to start growing your paper money collection, check out Colonial Acres Coins. Colonial Acres has been in business for more than 20 years and is home to an expert team of professional numismatists with tons of knowledge and information. Colonial Acres is also where you’re able to find countless rare and interesting banknotes to add to your collection, so pay a visit to Colonial Acres today and get on the right path of growing your future paper money collection.