Paper money was first invented in the 7th century in China. To make a purchase before that time, you had to carry around heavy gold coins or something to trade, such as a fur or a few chickens. With slips of paper that could easily fit in your pocket, shopping became much easier.
But nowadays, cash can seem inconvenient. Why count out change when you can quickly order a burrito on your phone? Plus, paper money is kind of gross. A 2017 study found hundreds of different germs on paper bills. It’s no wonder that nearly half of Americans would rather pay with apps than with cash.
There’s a more serious consideration, though: the cost of creating money. Right now, about 45 billion bills are in circulation in the U.S. Over time, these bills become damaged and have to be replaced.
Last year, the U.S. government set aside nearly $900 million for printing new bills. Doesn’t that seem like a waste?