If you've ever swapped one of your toys with a friend in return for one
of their toys, you have bartered. Bartering is trading services or goods
with another person when there is no money involved. This type of
exchange was relied upon by early civilizations. There are even cultures
within modern society who still rely on this type of exchange.
Bartering has been around for a very long time, however, it's not
necessarily something that an economy or society has relied solely on.
What is a Barter System?
A barter system is an old method of exchange. Th is system has been
used for centuries and long before money was invented. People exchanged
services and goods for other services and goods in return. Today,
bartering has made a comeback using techniques that are more
sophisticated to aid in trading; for instance, the Internet. In ancient
times, this system involved people in the same area, however today
bartering is global. The value of bartering items can be negotiated with
the other party. Bartering doesn't involve money which is one of the
advantages. You can buy items by exchanging an item you have but no
longer want or need. Generally, trading in this manner is done through
Online auctions and swap markets.
History of Bartering
The history of bartering dates all the way back to 6000 BC.
Introduced by Mesopotamia tribes, bartering was adopted by Phoenicians.
Phoenicians bartered goods to those located in various other cities
across oceans. Babylonian's also developed an improved bartering system.
Goods were exchanged for food, tea, weapons, and spices. At times,
human skulls were used as well. Salt was another popular item exchanged.
Salt was so valuable that Roman soldiers' salaries were paid with it.
In the Middle Ages, Europeans traveled around the globe to barter crafts
and furs in exchange for silks and perfumes. Colonial Americans
exchanged musket balls, deer skins, and wheat. When money was invented,
bartering did not end, it become more organized.
Due to lack of money, bartering became popular in the 1930s during
the Great Depression. It was used to obtain food and various other
services. It was done through groups or between people who acted similar
to banks. If any items were sold, the owner would receive credit and
the buyer's account would be debited.
Disadvantages and Advantages of Bartering
Just as with most things, there are disadvantages and advantages of
bartering. A complication of bartering is determining how trustworthy
the person you are trading with is. The other person does not have any
proof or certification that they are legitimate, and there is no
consumer protection or warranties involved. This means that services and
goods you are exchanging may be exchanged for poor or defective items.
You would not want to exchange a toy that is almost brand new and in
perfect working condition for a toy that is worn and does not work at
all would you? It may be a good idea to limit exchanges to family and
friends in the beginning because good bartering requires skill and
experience. At times, it is easy to think the item you desire is worth
more than it actually is and underestimate the value of your own item.
On the positive side, there are great advantages to bartering. As
mentioned earlier, you do not need money to barter. Another advantage is
that there is flexibility in bartering. For instance, related products
can be traded such as portable tablets in exchange for laptops. Or,
items that are completely different can be traded such as lawn mowers
for televisions. Homes can now be exchanged when people are traveling,
which can save both parties money. For instance, if your parents have
friends in another state and they need somewhere to stay while on a
family vacation, their friends may trade their home for a week or so in
exchange for your parents allowing them to use your home.
Another advantage of bartering is that you do not have to part with
material items. Instead, you can offer a service in exchange for an
item. For instance, if your friend has a skateboard that you want and
their bicycle needs work, if you are good at fixing things, you can
offer to fix their bike in exchange for the skateboard. With bartering
two parties can get something they want or need from each other without
having to spend any money.
that's why Contrabart is here to take away the disadvantage of bartering and every people will enjoy barter.
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