Source: Bullionstar – The nature of money
“Money is not the creation of the state. It is not the result of acts of legislation and its emergence did not require a society-wide agreement of any sort. Money came into existence because the individuals who wanted to trade found a medium of exchange immediately useful. And the more people began to use the same medium of exchange, the more useful it became to them.”
– Detlev S. Schlichter
Down through history, people have always had the need to trade and exchange goods. Barter trade is probably one of the earliest form of trading where goods are exchanged directly for other goods. If a trader A has apples while trader B has oranges, trade between them takes place if they want the goods produced by each other. They will then determine how many apples could be exchanged for an orange or vice versa.