COMMODITY MONEY

Let’s take a trip back in time—not in a time machine, but through the fascinating evolution of commodity money. Think of it as shopping with the weirdest cash ever!

What’s Commodity Money?

Commodity money is like the old-school version of cash, except instead of paper bills or digital numbers, people used actual stuff that had real value. Imagine paying for your pizza with a chunk of salt or a handful of shiny shells!

Examples of Commodity Money

Salt:

Ever hear someone say they’re “worth their salt”? Well, they might just be bragging about their paycheck. In ancient times, salt wasn’t just for seasoning your popcorn; it was so valuable that it was used as money. That’s right, salt was the OG salary. Roman soldiers were paid in salt because it kept their meat from turning into a science experiment (aka rotting). So next time you sprinkle salt, think of it as sprinkling money!

Cowrie Shells:

These weren’t your average seashells picked up at the beach. Cowrie shells were the equivalent of having a wallet full of cash in parts of Africa, Asia, and the Pacific islands. They’re small, shiny, and hard to fake, which made them perfect for buying anything from a chicken to a new hat. Plus, who wouldn’t want a pocketful of pretty shells?

Gold:

Ah, gold! The Kardashians of commodity money—flashy, universally adored, and always in style. Gold has been a big deal in pretty much every culture because it’s shiny, doesn’t get ugly (doesn’t corrode), and let’s be honest, it’s gold. It was minted into coins and became a standard for showing off wealth and buying stuff across empires.

Why Did We Even Use Commodity Money?

Commodity money was valuable in itself, but it also had to be:

• Durable: So your money doesn’t literally disintegrate in your pocket.
• Divisible: So you can buy a soda without paying with a whole cow.
• Portable: So you don’t need a forklift to carry your money.
• Uniform: So every piece is kind of the same, not a “choose your own adventure” money system.
• Acceptable: Everyone must be cool with using it to buy and sell things.

Problems with Commodity Money

It wasn’t all smooth trading. Commodity money had its drama:

• Limited Supply: Imagine if there was only a tiny bit of gold left—suddenly, everyone’s fighting over shiny yellow rocks.
• Lack of Uniformity: One cowrie shell might be big and shiny; another might be sad and dull. Not exactly fair, right?
• Storage and Transportation: Try stuffing a bunch of heavy salt bars into your backpack. Not practical unless you’re planning a workout.

Why We Moved On

As the world got busier and people got smarter (or just lazier), they realised carrying around loads of commodities was too much hassle. Enter representative and fiat money, where we basically trust the government to say, “Yes, this paper is worth something—no, you can’t eat it, but you can buy pizza with it.”

Closing Thoughts

So, there you have it! A whirlwind tour through the weird and wonderful world of commodity money. It’s more than just old stuff—it’s the original way humans figured out how to trade and set the stage for all the swiping and tapping we do today. Next time you buy something, just be glad you’re not lugging around a bag of salt or fishing for cowrie shells!