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The Ascent of Money PDF Summary

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The Ascent of Money PDFMicroSummary: Legend has it that money makes the world go round. But what does it mean? How important is money and how did it get that status? “The Ascent of Money” was written by famed historian Niall Ferguson, considered one of the most influential people in the world by Times magazine. In the book, he tells the story of the emergence of money and its evolution to current standards.

A Financial History of the World

Also, he explains how the concept of money is more important than the object itself and illustrates the problems of financial bubbles in the world.

It offers great insight into the world’s financial crises and human-made money protection systems.

Discover why money has value to man even as technological innovations have affected the financial system in force in the world.

“The Ascent of Money PDF Summary”

Why Money Has Value

Money did not always exist, but it changed the human being, who from hunter became a financial participant. Not everyone likes our money-based system and those with socialist ideas think there are other better systems.

However, what history has proven is that money is one of the most efficient ways of conducting daily business.

Some have used shells, fabrics, clays, and metals to represent money, but no matter what it is made of, the idea is always the same: the real value that money has is represented by the good or service that a person is willing to trade with him.

Most of the money used in antiquity was made of precious metals like gold, silver, and bronze. Because these metals were rare, they had value to people, who were willing to be paid with them for things they did and produced.

At that time, to enrich yourself, you had to search for these materials and keep them in abundance. However, when Diego Gualpa discovered a silver mountain in Peru and took his wealth to Spain, it caused inflation in Europe.

In the old days, we could ask the banks for the gold our money represented, but that is no longer the case. Money has now become intangible.

It doesn’t mean that it is worth nothing but reveals the true nature of money: it only has value because some people believe it. We trust that we are being paid by someone who can pay for something that has value.

These days, most of our transactions are carried out without using cash. We read numbers on a screen that tell us how much money we have and when we pass the card to buy something, the numbers decrease.

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