The barter system facilitated exchange of goods and services before the advent of the monetary system. Let us take a closer look at the history of this age-old system.
Barter system is an age-old method that was adopted by people to exchange their services and goods. This system has been in practice for centuries before the invention of money. People used to exchange their goods or services for other goods or services in return. Nowadays, barter services have staged a comeback with the advent of more sophisticated techniques that aid trading through the Internet.
During ancient times, barter system was a local phenomenon which involved people in the same locality. However, today it has become more global. You can now negotiate with the opposite party regarding the value of the item you want to barter and vice versa. The advantage of bartering is that it does not involve money. You can buy an item in exchange for some other thing you currently have. This type of trading can be done through swap markets and online auctions. Here is a brief overview about the history of this trading system, which has its own advantages and disadvantages.
The Europeans started traveling across the globe during the Middle Ages and used barter services to trade their goods like fur and crafts to the East, in exchange of perfumes and silks. People of colonial America did not have enough money for business, which was mainly based on barter services. Most of their business consisted of wheat, skin of male deer (bucks) and musket balls. They were also experts in exchanging services. If members of one family agreed to help their neighbors in harvesting their crops, the latter would help the former in their task, like roofing their building. The history of barter system can also be linked to the initial years of Oxford and Harvard Universities, where students used to pay their fees as food items, firewood or livestock.
In short, barter system has been in use throughout the world for centuries. The invention of money did not put an end to bartering services. Sometimes, monetary crises fueled the revival of this system and the current recession has once again set a stage for its comeback. Even though money is there for trading and business, barter system still exists and has become more strong and organized. There are numerous websites that offer online bartering arrangements. Make sure to understand the terms and conditions before getting involved in these types of bartering, as some of them can be really tricky.