Crypto Currencies Ch.1 The Invention and Evolution of Money
Money and Trade are two sides of the same coin. It's history runs as far back as the day humans left behind their nomadic ways to form small communities.The need to obtain things or services from others that they can not procure, produce or gather gave birth to the first trading system. The Barter
The Barter system worked for a while. But it's inherent flaws like the inequality of the trade and the lack of easiness in trade made people to look for a better way to make trade. Stones, furs even salt were used as a form of money. The establishment of Kingdoms also gave birth to the minted money. Their value was dependent mostly on the metal that was used to mint the money.
Latter the Gold standard came in to prominence. Where the value of the money was dependent on the Gold that the government has in its reserve. This helped in producing the currencies in bulk cheaply by printing paper currencies and the coins on cheaper metals. It's advantage was also it's disadvantage. The amount of money in circulation was solely dependent on the Gold the Country has in it's reserve. And some countries were Gold poor to begin with.
So the Fiat currencies that are non dependent on Gold reserves made their appearance. This move helped the Governments to print as much currencies as they deemed necessary.This helped in vitalizing the business world by making more money available for them to trade with. It also caused inflation, And an unstable regime in some countries made their moneys value to nosedive.
Irrespective of dependent on Gold or not there is one thing that is the same with all these currencies. They are all centrally governed and regulated by their respective Governments.The great strides made in Information Technology along with Cryptology made the invention of a fully digital, non gold dependent, non government dependent distributed virtual currency possible, These currencies are generally known as Crypto Currencies.
Comments
Post a Comment