In 3000 years money has changed three times

What does "money change" mean?

The first money can be traced back to the Kingdom of Lydia (present-day Turkey), where more than 3000 years ago the first market structure appeared. The circulation of coins and the development of markets laid a very important foundation for the development of civilization. Scholars link these events to the decline of empires and the development of the "New World".

The second generation of money developed between the Renaissance and the Industrial Revolution. As a direct consequence capitalism emerged, which we can trace back to the Italian banks of the time. The creation of national banks and paper notes put an end to feudalism and transformed the world. Wealth is no longer expressed only in the ownership of land, but also in the ownership of stocks and companies.

At the beginning of the 21st century, we are witnessing the third major change for money. Digitization, which manifests itself in all sectors of business, also reaches banks. Bitcoin is already a well-known electronic currency.

In addition to these global changes, many local ones are also being observed. One example of this is the crisis in 1914. Hyperinflation, 10 years later, caused the German mark to disappear, as well as many other European currencies. What could cause something so massive? The answer is a technical error. With German reunification, an error occurred in defining the monetary union, which was ultimately responsible for the partial collapse of the Exchange Rate Mechanism in 1992.

Today, when a huge part of our finances is managed online, the potential for technical errors is much greater. Many of them can be prevented if we are more careful, not only with bank transfers, but also with our investments. The same goes for corporations. "Many [cyber] attacks could be prevented if companies strengthen their cyber security and controls – often with simple measures," said Rishi Baviskar, Global Cyber Experts Leader at AGCS Risk Consulting.