"Bitcoin is a system based on rules not rulers"
Recently, RBI Governor called for a ban on crypto
But, the promise of Crypto and Bitcoin is stronger than ever 👇👇
#bitcoin #crypto #RBI #money #commodity #banks #gold
cryptobeans.beehiiv.com
Let's look at the The History of Money to understand more.
From Barter to Fiat Currency to Cryptocurrency
1/ It all started with the need for trade....
🔸In ancient times, people used the barter system to trade goods and services.
🔸This means that they would directly exchange one item for another without using a medium of exchange, such as money.
2/ But barter is not scalable....
🔸So the economy starts requiring some standard unit of account, or money.
🔸People began to use items that were widely accepted, like shells or beads, as a medium of exchange.
🔸These items were known as commodity money. Think Salt or Shells
3/ Use of GOLD
🔸As civilizations developed, other forms of commodity money like metal coins, were created.
🔸People started to trust these coins as they knew the value of the metal they were made of.
🔸This is how gold became the first form of standardized money.
4/ The GOLD STANDARD
🔸Well, as trade expanded across borders, it was difficult to transport large amounts of gold.
🔸To solve this problem, governments began to issue paper money that could be exchanged for gold.
🔸This system was known as the gold standard.
5/ But banks were smart....
6/ They led to a system known as FIAT currency....
7/ So, What is Fiat Currency Really Worth?
8/ And Finally: The arrival of Bitcoin
**I cover the whole topic in my latest weekly newsletter**
cryptobeans.beehiiv.com
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