What is Money?
It is an Economic entity that is generally used as a medium exchange. But have you ever thought, how it is originated? So, let’s quickly deep dive into the history of money.
Evolution of Money :
In history (old civilization) people used to exchange things to get thing’s they want (Barter System). For example, if I want apples and I have bananas, I give bananas to the other person and take apples. Similarly for other goods as well. But there was more disadvantage with this system, cause it is so inefficient and the exchange might not be fair (same value).
Then came Sea Shell money where we can exchange seashells and buy some goods. later on, precious metals like gold and silver came into the picture and people started to exchange them to buy goods. But still, there was a disadvantage to this as well, as we cannot carry so much gold or silver. Then came the Gold Standard (1834–1880) which is paper money where 1 dollar paper is equal to 1 dollar of gold. In this era, if you want gold you can give $1 paper and you will get $1 worth of gold (100% backed ). After World war, I and II Gold Standard were gone and the fiat currency originated (Paper Money). Where countries/governments print money as a legal tender which we are using at present. As the money was getting printed, inflation started to increase.
Value of Rupee or Dollar started to decrease. To avoid this, Satoshi Nakamoto (presumed pseudonymous person or persons who developed bitcoin) developed a digital currency that is not centralised and cannot be increased in its total number as it has a supply limit of 21,000,000 Bitcoins which runs on a network called the blockchain. Decentralization, Transparency, Immutability are the three pillars of Bitcoin.
(If am wrong anywhere, am ready to correct and ready to listen. let’s Learn together 🙂.)
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