Money is generally known as the “medium of exchange in the form of coins and banknotes”. Before the inauguration of money, people used barter system (exchanging goods with goods). In the early stages, money was introduced in the form of coins. With time and with the modern era people desired something more convenient than coins and changed the money in the form of paper. As coins were heavy to carry or handle.
Invention of money
Around 5000 B.C Lydians became the first western culture that invented coins. The first paper currency was introduced in the 7th century Tang Dynasty China and true paper money in the 11th century. Later Mongol Empire spread the usage of paper money. With the development of science and technology, the world became modern, innovative, started thinking deeply and closely. Paper money has merits and demerits which influenced people to think for some better option. As a result, plastic money was introduced in the 1900s.
Difference between plastic money and paper money
Paper money is made up of paper and silk and light in weight and it is more elastic. It can easily handle. It is easy to move and can count easily while Plastic money is nothing but debits and credit cards used to withdraw or deposit money directly from banks or through the ATMs. It is made up of plastic or polymers like material.
Why Paper Money is better than Plastic Money
Plastic money is being used commonly these days. The rapid increase in the usage of plastic money as compared to paper money involves advantages and disadvantages. In America, consumers prefer plastic money more than paper money. American adults have more than one credit or debit card and use for transactions.
Ease in Online and Manual Payments
Paper money is countable. It is non-cyclical. Paper money can easily move from one place to another place and can easily be stored. While plastic money is used to a great extent like whenever you do online shopping you simply pay through your credit cards with online procedures. But when you do shopping by hand it is difficult because plastic money is not mostly acceptable by every merchant or shopping center. But through paper money, you can easily pay.
Paper Money is more Secure
Sometimes when you make purchases you know about cash in the wallet and you observe how quickly your money is running out that’s why most people prefer cash. A plastic card is just a plastic that can get lost or even stolen. Which may results in the misuse by the thieves, extensive purchases from the name of the account holder.
While paper money just a paper. In the case of rob; paper money is not harmful to a person because it has no personal detail or information about the cash owner. While credit cards may become the key to your personal financial information.
The magnetic chip of credit card may get worn out due to the massive use. As if you are traveling and this condition may happen and you have an only credit card then you have to wait until you get your new credit card. It may take you a lot of time. Although, credit cards benefit to make transactions easy and are a faster way to access money but completely dependent on plastic money is not good.
Ease of Use in Different Regions
In Azerbaijan, people are not psychologically able to immediately get used to plastic money. It may become out of control that’s why Azerbaijan uses the cash payment method then payment through plastic money. Most of the country’s largest financial institutions have linked with phone companies to develop the payment method similar to credit cards but still, cash is a more acceptable method in Azerbaijan.
Dependence on Different Area
It is difficult to use plastic money in those areas where it is permitted due to some issues or regional disputes to use their cards by various companies.
Paper money and plastic money have their own advantages and disadvantages. To use any of the methods is your own choice and it depends on the environment and your needs.