Initially, when the first versions of money were created, people didn’t have this sort of trust, so it was necessary to define as “money” things that had real intrinsic value. History’s first known money— Sumerian barley money—is a good example. It appeared in Sumer around 3000 BC, at the same time and place, and under the same circumstances, in which writing appeared.
Just as writing developed to answer the needs of intensifying administrative activities, so barley money developed to answer the needs of intensifying economic activities.
Barley money was simply barley—fixed amounts of barley grains used as a universal measure for evaluating and exchanging all other goods and services. The most common measurement was the sila, equivalent to roughly one liter. Standardized bowls, each capable of containing one sila, were mass-produced so that whenever people needed to buy or sell anything, it was easy to measure the necessary amounts of barley. Salaries, too, were set and paid in silas of barley. A male laborer earned 60 silas a month, a female laborer 30 silas. A foreman could earn between 1200 and 5000 silas. Not even the most ravenous foreman could eat 5000 liters of barley a month, but he could use the silas he didn’t eat to buy all sorts of other commodities—oil, goats, slaves, and something else to eat besides barley.
Even though barley has intrinsic value, it was not easy to convince people to use it as money rather than as just another commodity. In order to understand why, just think what would happen if you took a sack full of barley to your local mall, and tried to buy a shirt or a pizza. The vendors would probably call security. Still, it was somewhat easier to build trust in barley as the first type of money, because barley has an inherent biological value. Humans can eat it. On the other hand, it was difficult to store and transport barley. The real breakthrough in monetary history occurred when people gained trust in money that lacked inherent value, but was easier to store and transport. Such money appeared in ancient Mesopotamia in the middle of the third millennium BC. This was the silver shekel.
Over 63.5 BSU - BYU
Let's also involve some money management tips along the way. No matter what is your starting bankroll - set it up first. Let's say you have now 1000 money units of your currency (USD, EUR, GBP.... whatever). So, that will be your initial bankroll. Then you set the betting unit (BU) size. 2% of your initial bankroll. In your case of 1000 units that would be 20 units. Our goal is getting paid and accumulating capital at the same time and like true capitalists - investing an accumulated capital's half back in business. So, once we double 1000 units - we will withdraw the half of profited 1000 units (500 units) and set the new bankroll at 1500 units. Subsequently - the BU size will become 30 your local currency money units.
Stay tuned as at the end of each post - there will be money management tips and some true capitalist education excerpts from professor Yuval Noah Harari's book
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