The idea of investing originated in ancient times. It can be traced back to Mesopotamia, 4th millennium BC. At that time, the main asset of interest was land. The only people who could afford to buy land were the rich ones, or in other words – the elite. Investing proved to be such an important part of society’s life that it made its way to the famous Code of Hammurabi – one of the oldest preserved legal documents in the world. According to the Code, land was to be used as collateral for investment.
Let’s talk about more recent events
Fast forward to the XVII century, the world saw its first real stock market open doors – the Amsterdam Stock Exchange. Although historians argue on whether it really was the first one, it was definitely first in size and it got enough publicity to become widely recognized as an institution. The stock market was created as an effort to connect business owners and investors, and to standardize investing, while also making it a more transparent and accessible process. That was also when concepts like liquidity, publicized value, and free price sharing were officially introduced.
The Industrial revolution – a new era of investing
Over a century later, the world entered into the industrial revolution stage. This period probably had the biggest impact on investing among all other events in human history. The industrial world introduced permanent employment and fixed salaries – thus people started having spare money that they could put aside every month. At the same time, they also needed a place to store and a way to manage their personal funds. This is how banking was born. Free funds could be saved and multiplied for the future – thus pension funds also originated. With so many changes at once, the investment scene was obviously changed forever – more people could afford to be part of it and they were provided with an easy way to collect and manage their earnings.
The Digital Age
We’re at the verge of another transformation. Actually, it would be more realistic to say that this transformation already started with the birth of FinTech. Even though stock exchange markets and banks made the investment game a whole lot easier, they still have their own imperfections – mostly related to bureaucracy and lack of control for the end user. Luckily, the technology sector has the means to overpower these drawbacks by digitizing and simplifying everything.
Until the new millennium, investing on the stock market was achieved through a middleman – people had to work with stock brokers to access the market and buy shares. The DotCom age provided us with commercial Internet and user-friendly platforms that help us follow the financial market on our own, make informed decisions and invest our money straight away. The available tools are sometimes smart enough that they do a big chunk of the work for you. This has also lowered the learning curve for newbie investors.
The new model
The tech revolution shaped new investment models and assets that didn’t exist before – like investing in P2P loans. Iuvo is a platform for P2P lending that allows you to invest in loans and make profit from the interest and the applicable fees. You don’t need to know anything besides general credit terminology and the profile of the borrowers (which is kindly filled by our loan originators). This gives you the power to start investing right away. At the same time, you don’t need to worry about sudden losses, since you’re protected by the Buy-back guarantee.
Solutions like iuvo help investors appreciate how much the world has developed in the last centuries. Investing has been part of the human culture for so long, but it didn’t experience any drastic changes until the 1600s. With the recent giant leaps, who knows what tomorrow will bring?
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