Evolution of Money: From Barter system to Bitcoin

[ScoobyDu]

Introduction:

Money has a fascinating history, from a barter system to paper currency. But now, we are in the era of cryptocurrency. Bitcoin, a decentralized digital currency, is an Incredible addition to this history.

What is the barter system?

Barter is the earliest way of exchanging goods between two people without money. People barter goods with each other by estimating the value of two goods.

Physical Currency:

It's complicated to estimate the value of two goods that have been exchanged in the barter system. Then, people find a way by introducing physical currency like silver and gold as a medium of exchange. This mode of exchange has been widely used for transactions for a very long time.

Paper Money:

The Tang Dynasty introduced paper money, which people still use for exchanges and transactions.
This paper money has to end one day, like the barter system and physical currency.

Bitcoin: (Incredible addition to this history)

Now we have Bitcoin, a Stunning addition to this history. That is the future—the next step in the evolution of money. Digital currency makes it easier to complete transactions and manage our money electronically. The need for a secure, borderless, decentralized form of money becomes increasingly evident as the world becomes more interconnected and digital. Bitcoin is the future of finance as it is become more mature and gain broader acceptance.

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[ColdLava40]

Generalizing them as digital currency gives us different options that sounds appropriate, but no doubt, bitcoin is going to be a leading figure among all. Interestingly, we are beginning to see cryptocurrency and bitcoin in movies as normal type of currency, though I understand that it is pure acting, but at least they've consider it as an option. Let's assume that we've all watched M.I.

[m2017]

Introduction:

Money has a fascinating history, from a barter system to paper currency. But now, we are in the era of cryptocurrency. Bitcoin, a decentralized digital currency, is an Incredible addition to this history.

The barter system didn't use money. From the word, absolutely.

Why did “your” history of the evolution of money stop at paper money? What about electronic ones, those used in online banking and bank cards, applepay and so on?

What era are we living in? Crypto currencies? Go to the nearest burger shop and try to pay for your purchase with crypto currencies.

For some reason, only a few users “downloaded” the incredible “addon addition” to this history.

What is the barter system?

Barter is the earliest way of exchanging goods between two people without money. People barter goods with each other by estimating the value of two goods.

If barter didn't use money, then how did it get into the “evolution of money”?

Physical Currency:

It's complicated to estimate the value of two goods that have been exchanged in the barter system. Then, people find a way by introducing physical currency like silver and gold as a medium of exchange. This mode of exchange has been widely used for transactions for a very long time.

You missed seashells in earlier stages.

Paper Money:

The Tang Dynasty introduced paper money, which people still use for exchanges and transactions.
This paper money has to end one day, like the barter system and physical currency.

Paper money will end very soon. As soon as CBDC is released (mass distribution).

Bitcoin: (Incredible addition to this history)

Now we have Bitcoin, a Stunning addition to this history. That is the future—the next step in the evolution of money. Digital currency makes it easier to complete transactions and manage our money electronically. The need for a secure, borderless, decentralized form of money becomes increasingly evident as the world becomes more interconnected and digital. Bitcoin is the future of finance as it is become more mature and gain broader acceptance.

The next step will be CBDC. Bitcoin, at best, will receive a separate alternative "line" of development and application.

[komisariatku]

In my opinion, bitcoin is not a successor to fiat currency because basically bitcoin is the antithesis of a centralized fiat system. Bitcoin is a big vision and a form of resistance to the centralized fiat system and criticism of fiat money which is always printed continuously.

Bitcoin was not just born, but before the birth of bitcoin there were already groups that criticized the fiat system and wanted a new system that was decentralized and where ownership was in the hands of the community themselves and no one could intervene. This community is called cyberpunk. Bitcoin has high value because bitcoin is a symbol of freedom

[Casdinyard]

The concept that the barter system came before currencies have been debunked numerous times in the past. It was known that people back then had hierarchies of relevance and power, and people are compensated well enough for the work that they put in service of that powerful entity. So while barter was used definitely, it was not the progenitor of commerce and economy. It was money that started it all. But I digress, the point of the topic is how things have gone from simplistic trade mechanisms to the very convoluted economic paradigm that we now have. I say it's for the greater good as more complex means more people are able to enjoy its benefits (at least on paper), especially when we consider bitcoin's existence in this entire ensemble.

[Vaskiy]

In my opinion, bitcoin is not a successor to fiat currency because basically bitcoin is the antithesis of a centralized fiat system. Bitcoin is a big vision and a form of resistance to the centralized fiat system and criticism of fiat money which is always printed continuously.

Bitcoin was not just born, but before the birth of bitcoin there were already groups that criticized the fiat system and wanted a new system that was decentralized and where ownership was in the hands of the community themselves and no one could intervene. This community is called cyberpunk. Bitcoin has high value because bitcoin is a symbol of freedom

Bitcoin is developed as an alternate to the fiat system used all around the world. Satoshi as a group/individual found this to be something necessary to cut the middle man. He created it for some purpose and it had got used in multiple ways. Before the innovation of bitcoin there were people who are looking for such a decentralised asset and even few others existed and none stood long in the market. As the other innovation doesn't get recognition earlier, bitcoin too didn't got good acceptance. Slowly the progress have taken place and now it have given new dimension to the term money.

[Aanuoluwatofunmi]

I guess you're referring to trade by barter, then when money was not yet utilized effectively and then people make use of this exchange medium to make trades, now that things have advanced more better from the use of fiat currency to a digitally decentralized currency bitcoin, we also have to move along side with it and make bitcoin our financial modern digital currency by adopting it and also making use of it for our own daily lives financial activities in the economy.

[yazher]

I hope one day bitcoins will be accepted all over the world and that would be a big leaf for mankind because we can get rid of paper money which we know is being used by banks and other governments to put pressure on individuals. If only people could create detectors to determine those people who are using bitcoins for their illegal activities such as drugs and other illegal kinds of stuff, we might have already seen it happen in the past because there would be no more problems after that.

[Youngkhngdiddy]

I guess you're referring to trade by barter, then when money was not yet utilized effectively and then people make use of this exchange medium to make trades, now that things have advanced more better from the use of fiat currency to a digitally decentralized currency bitcoin, we also have to move along side with it and make bitcoin our financial modern digital currency by adopting it and also making use of it for our own daily lives financial activities in the economy.

 This shows us how that the world is fast developing, and the development is reaching other sectors not only in the financial sector, we can also see how fast technology is evolving our daily life, we now have digital homes and cars, companies now uses robot to do their work. We are leaving in an advance world now where everything is going digital. I will say Bitcoin is the solution to the financial sector, it is interesting to know how progressives the world has evolved to, we now sit from the comfort of out to run business and even do transactions, have auto pilot cars etc…
  Bitcoin has made a name for its self and will be hard to suppress, soon it will be going mainstream and it will gain adoption in every country. Some big restaurants and hotels now receive payments with Bitcoin. The decentralized payment method makes it even promising cause not every one likes the idea of the government having tap of their money. Bitcoin will be the new big thing and when finally adopted, it will better the standard of living to an extent. Despite  some government restrictions on Bitcoin, it still as it stands because of  it’s acceptance to the world.  

[iBaba]

In my opinion, bitcoin is not a successor to fiat currency because basically bitcoin is the antithesis of a centralized fiat system. Bitcoin is a big vision and a form of resistance to the centralized fiat system and criticism of fiat money which is always printed continuously.

In my opinion, Bitcoin can be termed as an alternative or 'successor' to the fiat currency in some sense. For instance, Bitcoin has a completely different currency value which place the currency ahead of every other fiat currencies by a large difference gap. When the fiat emanated, it also came with it's own value as different dro that of the former.

 I can say Bitcoin looks even more spectacular since it value is strong a enough to hold the taste of time (like the gold which is still one of the most valued gemstones - currencies - in the world for centuries). Second of it is that, despite the advent of the fiat currencies (paper money), it didn't take out the former currency away, it instead worked side by side until the world understood the full potentials and bigger advantages of it before they don't the former for the latter. Same thing is being applied here.

We will continue to use the fiat currencies until people are able to gain a full understanding of how the system works before they will begin to finally dump the fiat for the digital currency.

Bitcoin was not just born, but before the birth of bitcoin there were already groups that criticized the fiat system and wanted a new system that was decentralized and where ownership was in the hands of the community themselves and no one could intervene. This community is called cyberpunk. Bitcoin has high value because bitcoin is a symbol of freedom

Bitcoin was just born, recently, which is true. But the purpose why it came into existence can be similar to the emanation of the fiat currencies. When people begin to lose interest in the status quo and begin to see an alternative in the new currency, the world will begin to accept the new changes. The truth is, they will continue to work side-by-side until the fiat currency fades away gradually. And yes. Because Bitcoin is a decentralized market has further given a milestone development in the financial sector. Only that the government will try to fight it's existence as they may see it as a generational freedom since everybody is a stakeholder in the value creation of the currency.

[Zlantann]

Now we have Bitcoin, a Stunning addition to this history. That is the future—the next step in the evolution of money. Digital currency makes it easier to complete transactions and manage our money electronically. The need for a secure, borderless, decentralized form of money becomes increasingly evident as the world becomes more interconnected and digital. Bitcoin is the future of finance as it is become more mature and gain broader acceptance.

Bitcoin indeed has so many advantages over fiat and CBDCs because it is decentralised and promotes privacy but there is still much work to be done to make it a globally acceptable currency. Currently, bitcoin is mostly used as an investment because of its volatility and this has discouraged many people from using it as a currency. Until bitcoin price becomes more stable, I doubt if it will be able to gain wider acceptance as a means of payment of goods and services. Until this stability happens bitcoin will always be an alternative form of payment. But I also believe that Bitcoin is the future of finance because it will become less volatile in the future but I don't know when this will happen.

I hope one day bitcoins will be accepted all over the world and that would be a big leaf for mankind because we can get rid of paper money which we know is being used by banks and other governments to put pressure on individuals. If only people could create detectors to determine those people who are using bitcoins for their illegal activities such as drugs and other illegal kinds of stuff, we might have already seen it happen in the past because there would be no more problems after that.

The banking sector has not also discovered the solution to the use of fiats to engage in illegal activities because these criminals are always seeking new ways of carrying out their illegal activities. I don't think there will ever be a quick-fix solution to the use of Bitcoin to engage in criminal activities. Money will always be used for good and evil. The use of money for evil shouldn't be an excuse to stop people from using it for legitimate purposes.    

[Jegileman]

Bitcoin: (Incredible addition to this history)
Now we have Bitcoin, a Stunning addition to this history. That is the future—the next step in the evolution of money. Digital currency makes it easier to complete transactions and manage our money electronically. The need for a secure, borderless, decentralized form of money becomes increasingly evident as the world becomes more interconnected and digital. Bitcoin is the future of finance as it is become more mature and gain broader acceptance.

Bitcoin is already getting the mass spread all over the world but the adoption is still limited since not up to five countries have accepted the use for legal transactions. Those that accepts the use have also placed some regulations and restrictions on it which makes it difficult for users to access or enjoy the use of it. After Bitcoin, which was proposed as an alternative to fiat currency, the introduction of CBDC is also paramount to the government to serve as a competition to the decentralized digital currency in which CBDC is centralized. CBDC could be the next successor of fiat but bitcoin still remains the best option for digital currency to be adopted.

If only people could create detectors to determine those people who are using bitcoins for their illegal activities such as drugs and other illegal kinds of stuff, we might have already seen it happen in the past because there would be no more problems after that.

If those detectors are created, won’t it sabotage the essence of decentralization and anonymity?
Before bitcoin, they’ve been case of theft in the monetary sector. Those using bitcoin for illegal activity is just to tarnish the name of it. But do you know that funds can still be traced through bitcoin transactions and freeze if legal documents are provided to prove the accused guilty of that. I don’t know how the recovery process will be, which I think is impossible unless there is an identity of personal information linked to the accused that they can easily trace him and make him return the money.

[Latviand]

In my opinion, bitcoin is not a successor to fiat currency because basically bitcoin is the antithesis of a centralized fiat system. Bitcoin is a big vision and a form of resistance to the centralized fiat system and criticism of fiat money which is always printed continuously.

Antithesis is definitely the right word for this, bitcoin was created by Satoshi because he wants people to have more control over their money and that they're able to earn it themselves by mining it directly.

I hope one day bitcoins will be accepted all over the world and that would be a big leaf for mankind because we can get rid of paper money which we know is being used by banks and other governments to put pressure on individuals. If only people could create detectors to determine those people who are using bitcoins for their illegal activities such as drugs and other illegal kinds of stuff, we might have already seen it happen in the past because there would be no more problems after that.

It will eventually, the resistance is coming from the older generation of politicians and people that still thinks that there should be no changes in the minimum wage and that the rent should get higher, once these old and traditional cronies get replaced by the younger generation especially the millenials and those that have an exposure to technology, acceptance of bitcoin is going to be smooth because either the resistance of the government into accepting bitcoin becomes less difficult or everyone agrees that they should accept it for the people. Another would be problem of bitcoin acceptance is probably the banks, they're not a fan of change and so they're definitely going to try to influence the new generation of politicians.

[DapanasFruit]

In my opinion, bitcoin is not a successor to fiat currency because basically bitcoin is the antithesis of a centralized fiat system. Bitcoin is a big vision and a form of resistance to the centralized fiat system and criticism of fiat money which is always printed continuously.

Bitcoin was not just born, but before the birth of bitcoin there were already groups that criticized the fiat system and wanted a new system that was decentralized and where ownership was in the hands of the community themselves and no one could intervene. This community is called cyberpunk. Bitcoin has high value because bitcoin is a symbol of freedom

This should be called as the history of the medium of exchange and investment as opposed to money. In the first place, barter is not using money but usually from one goods to another, then we also have precious metals like gold and silver - it is only later that the concept of modern money came in most especially with the printing of the fiat money. I also agree that while Bitcoin can function as money it also represents many things as antithesis to the traditional financial system that is controlled by the governments.

[SquirrelJulietGarden]

You dig deeply to know about Barter system but you did not know or did not mention the Gold Standard.

It is a latest international monetary standard and there are Bitcoin maximalists who hope to see Bitcoin standard in future.

The bullish case for Bitcoin.

Bitcoin is an incipient money that is transitioning from the collectible stage of monetization to becoming a store of value. As a non-sovereign monetary good, it is possible that at some stage in the future Bitcoin will become a global money much like gold during the classical gold standard of the 19th century. The adoption of Bitcoin as global money is precisely the bullish case for Bitcoin

I don't hope like them as I am realistic that governments will not let it happens because they have fiat currencies and CBDCs (Central Bank Digital Currencies) to nurture. They will not let Bitcoin becomes a new international standard. At least they will try best to prevent it to happen.

[Silberman]

In my opinion, bitcoin is not a successor to fiat currency because basically bitcoin is the antithesis of a centralized fiat system. Bitcoin is a big vision and a form of resistance to the centralized fiat system and criticism of fiat money which is always printed continuously.

Bitcoin was not just born, but before the birth of bitcoin there were already groups that criticized the fiat system and wanted a new system that was decentralized and where ownership was in the hands of the community themselves and no one could intervene. This community is called cyberpunk. Bitcoin has high value because bitcoin is a symbol of freedom

This should be called as the history of the medium of exchange and investment as opposed to money. In the first place, barter is not using money but usually from one goods to another, then we also have precious metals like gold and silver - it is only later that the concept of modern money came in most especially with the printing of the fiat money. I also agree that while Bitcoin can function as money it also represents many things as antithesis to the traditional financial system that is controlled by the governments.

I agree, before we had money there were many steps that lead to its invention, with one of the most important being commodity currencies, however commodity currencies had their own share of problems, like not being fungible, not being portable, a unit of account or being durable, gold and silver solved most of those problems but since their purity and weight were still different we could not call them money yet, it was not until coinage was created and gold and silver were made into coins of equal weight and purity when we finally got money.

[ScoobyDu]

I hope one day bitcoins will be accepted all over the world and that would be a big leaf for mankind because we can get rid of paper money which we know is being used by banks and other governments to put pressure on individuals. If only people could create detectors to determine those people who are using bitcoins for their illegal activities such as drugs and other illegal kinds of stuff, we might have already seen it happen in the past because there would be no more problems after that.

Without any doubt the future of digital currencies is very very exciting,and definitely it will be accepted all over the world. As cryptocurrencies continue to develop and mature, it may indeed revolutionize how we handle finances and transactions on a global scale.

Efforts are already underway to develop methods to detect and prevent the misuse of cryptocurrencies for illegal activities.

Various technologies and companies are working on blockchain analysis tools to identify suspicious transactions and entities.

[serjent05]

The invention of the internet plays an important role in the creation and implementation of digital currency and cryptocurrency.  @OP forget that before cryptocurrency comes the electronic money.  They are both a subset of Digital currency, electronic money is one that is centralized, and cryptocurrencies like Bitcoin are decentralized.

As technology develops, the ease of money transfer is getting better, I also think that in the future there will be another creation that will outperform the blockchain technology.

[Despairo]

Digital currency should be the last path, but right now we're still not yet use Bitcoin as a currency, so we're in progress to achieve that. Send using Bitcoin would be cheaper when we transact with people in the other country, when people are aware how to use lightning network and most country already accept Bitcoin as a currency (not necessary Bitcoin is a legal tender), that's when Bitcoin price will be very very expensive.

[Blitzboy]

Money evolves as civilization advances and innovates. Moving from barter to real currency had its challenges, didnt it? Physical cash was flawed by theft, deterioration, and bulk shipping weight. Even with paper money, inflation and centralized control are obvious. Thats the issue

As you noted, Bitcoin changes the paradigm. We no longer depend on banking or centralized authority. We control, right? Blockchain, the technology behind Bitcoin, is mysterious to most people. Although Bitcoin is innovative, most people dont comprehend it. In addition to adapting to Bitcoin, you must understand its underlying ideas and worth beyond financial rewards. If we think its the future, we need substantial education and promotion.