The choice of 'GMT' was really a result of the 'International Meridian Conference' held in Washington in 1884. There was no universal standard either on time or on how meridiens should be counted (or where it should start). If you are interested, read the Wikipedia article [International Meridian Conference] and the proceedings [http://www.gutenberg.org/files/1...]. (A relative of mine, the Swedish minister in Washington, Count Lewenhaupt, acted as chairman).
In 1882 the United States Congress directed President Chester A. Arthur to inquire of the world about the desirability of creating an international agreement on time and longitude. In 1883 the European geodetic conference endorsed the notion, and the US President issued an invitation to meet in Washington DC in 1884. The International Meridian Conference produced results which still have significant influence over the agreed notions of time.
The choice of the Greenwich meridien as zero was heavily influenced by the preponderance of Admiraly charts of the world. Any change would require a major re-issue of the charts, and of those charts based on the Admiralty charts, with a lot of confusion... Basically, most nations were for the Greenwich meridien. The French, naturally, were against it. Knowing they could not propose the Paris meridien as a world standard, they proposed what is now the international date line. This would have meant that the date line would be in the most populous areas of the world. Not a good idea. (The French did not accept the Greenwich meridien until 1911).
The acceptance of the zero meridien at Greenwich also - automatically - meant that Greenwich time became Zulu time, as the distance from Greenwich formed the basis for time differences. This was important, as the telegraph has became common, and messages between e.g. Washington and London had to be accurately time stamped.
GMT has now been replaced by UTC (sort of, in non-scientific usage we still use GMT. The difference between GMT and UT1 is never more than 1 second....)
Comparison chart
GMT versus UTC comparison chart
GMT UTC
Stands for Greenwich Mean Time Coordinated Universal Time
Refers To A Time Zone A System Of Time-Keeping
Usage By Human Readable Clocks By Digitally Synchronized Clocks
Measured Using Rotation Of Earth (Historically) Atomic Transition Principle

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