The History of Money – from Shells to Bitcoin

History of money

Money makes the world spin, and for centuries it has been fundamentally unchanged, but in different forms. They have always represented power, but have always been represented – shells, gold, coins, checks, gold-based banknotes, trustworthy banknotes, and now in Bitcoin. You can read this to find out all about it.

In fact, the amount of money is much smaller than most people think. The truth is that they have intrinsic value 0, which, although evident, for many seems inconceivable. The fact that we accept them for services, goods, food,and shelter and covers all our basic needs is just the fact that we are willing to trust not only the piece of paper that someone puts us in hand but also the fact that others, in turn, will believe it. After all, if you plan to go to Everest, you’ll instead get thermal insulated sleeping bags than a few bricks of money, be it even dollars or euros. It is the easiest way to prove that money is not valuable.

It is clear that a potato bag is more valuable than the two metal chips we give at home, but that does not mean I’m trying to convince someone to use potato bags to trade.

Apparently, there was a need for a universal, easy-to-store product that everyone accepts, only on a reliable basis, not in the customer but the product –to be sure that wherever we go, we will be able to change that product for any service or product we want. Because they were living in a physical world, in other words, “what’s in your hands is not a lie,” they did not foresee the idea that the money could be virtual, so it would be easier to store, protect and hold on to the bearer. By checking out the Bitcoin Code app, you will see and understand more about the code used for Bitcoin.

So the money itself is not supported because it has an equivalent in gold, but because the world trusts them. Let’s see a brief history of the money.

Shellfish

The first accepted money was shellfish. Light, easy to store, quite rare if you did not live on the beach, aesthetically (you could show your status by adorning them), were ideal for prehistoric people. They had an impressive period of circulation, and in some parts of the world, they were used until the middle of the 18th century. So, gold is not a universal value, and at some point in some areas there were other confidence-based formulas

Shellfish

Gold is just another shell

Gold is the technological force and effort that people put down to mine. Besides its charisma, it is utterly useless.Throughout history, the monarchs and governments have created many gold coins more than they could fund in gold. Replacing some of the precious metal of a coin with a base metal (copper or nickel) allowed the authorities to produce more coins than it would have been possible. This devaluation sometimes has the role of making the currency more resilient (physically), but usually, the reason is apparent – the desire to make a profit due to the difference between the exposed value of the currency and that of the metal in which it is made. So neither the gold coins have ever been supported 100% of gold.

Medieval period

The coins were prevalent during the medieval period, but an interesting aspect was the work of the Templar Knights of that time, who had a banking institution. People were very confident in them. On the one hand, they were a sort of archangels sent on earth fighting for God, and religion played such an important role that no Christian challenged them. On the other hand, they were a strong military and financial force. They were known to be extremely rich and extremely correct, so any Templar seal paper was worth just as they claimed to be worth. In a world where neither the money in your pocket nor its possessors were safe on longer roads, it was an excellent idea to deposit your gold at the Templars. In return, they issued a sort of check, a confirmation that the person in question has a greater or lesser amount of money. The Templars issued the first banknotes to replace gold, a medieval proof of an incorruptible entity. Today it is hard to say whether they were incorruptible or whether those papers could be falsified, it is certain that they were accepted on any old European market.

Here is a useful reference: https://www.ccn.com/bitcoin-price/

The economic crisis

Historically speaking, the money that is supported by gold could be a less exact phrase that we would expect. It is a charismatic metal that comes in limited quantities of nature and demonstrates the wealth and power of the keeper. The economic crisis of recent years has shown us gold does not support all an important thing – most coins in circulation, and their value is entirely unpredictable. Although people work as much as in the past, even more efficiently and with more consistent results, their effort, time and health are worthless just because gold deposits are fewer. It looks like a cruel market. We do not want the money to lose its value, and meanwhile, human life is getting cheaper. Gold is also a proof of work – effort, time and luck – and it can be replaced with any other material (physical or in form information) in which people trust. Then, and only then, the real human crisis will end.

Economic crisis

The anonymity of Satoshi Nakamoto, one of bitcoin’s founders

Bitcoin has, like any other invention, his parents. In this case, the parent on the birth certificate has the pseudonym,Satoshi Nakamoto.It may seem like a bizarre choice, but the inventor of a few billion dollars is hiding under a pseudonym and utterly refuses to reveal his identity. In 2008, he published a white paper on bitcoin, explaining in detail the protocol on which the most popular cryptomonads are based. He has promoted it for a while and has finally come out of the public scene in 2010. Since then, the press has repeatedly tried to investigate who is hiding under the name of Satoshi Nakamoto and has come up with all sorts of ideas, many of which are absurd.

Meanwhile, there has been more speculation about Satoshi Nakamoto, and the most likely thing is that behind this big project is a whole team that has corroborated information from several areas – economics, programming, political science. The bitcoin parents’ identity was not revealed even when they were promised a nomination for the Nobel Prize for Economics.

Economics Price

Why does the status remain secret? Novice skeptics in the bitcoin ecosystem, who have not yet understood the principle of the digital coin, often invoke this argument – how safe can it be an investment in a “company” with a secret “director”? Such questions first show how little they understand the idea of ​​decentralization.

The principal guarantor of the fact that Satoshi is a trusted inventor is that he could easily manipulate the market. He has consistent amounts of bitcoin that he could have sold at any of the bubbles, making Bitcoin a costly pyramid scheme. He has not done so until now and is unlikely to do so. He protected the billions of dollars in the bitcoin, which is a big deal.

About Mohit Tater

Mohit is the co-founder and editor of Entrepreneurship Life, a place where entrepreneurs, start-ups, and business owners can find wide ranging information, advice, resources, and tools for starting, running, and growing their businesses.

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