History and the Future of Currencies
Our
history book provides us with very little knowledge about how our economy came
to be. This post aims to give an overview of how the currencies that we know of
today, have evolved and go in detail on digital currencies
the present talk of the town and what will become of these currencies.
After
a long period of time, historians, say that societies discovered that they
found it safer and easier to exchange goods with goods- the barter system,
instead of going into war with each other, frequently traded, between
individuals or societies, for other goods were domestic animals like cattle and
goats. With the development of farming in the 8th millennium grains
were added to the list of exchangeable goods.
It
is, only after the trade around the extraction of rich metals that the
commodity currencies came to be used, the kingdom of Lidia on the western cost
of Turkey is said to have crafted coins that were a mixture of gold and silver-
“Electrum”. They were standard in weight; ranging from 0.15 grams to about 14
grams, in irregular shapes and sizes. Aside from Lydia, Greece and a few
kingdoms and individuals from China that used coins for trade. The innovation
of paper currencies, scholars say, can be credited to the Chinese, as they
found it to be lighter auxiliary for coins. The momentum of paper currencies
took its time to reach Europe. By 1661 banking institutions had been formed and
the government of Sweden issued its own state sponsored banknotes. Further to
which the Bank of England was formed. From then on various different world
currencies came to use and various laws and policies were created to keep
counterfeit and various frauds from taking place.
Subsequently,
Paper currencies were normalised and newer technologies have come into play to
make transactions easier, digital currencies
and E-wallets like PayPal
and others are some innovations that are playing a major part in reducing paper
currencies in the 2010s.
The
initial idea for digital cash, even though a failure, in a way paved the path
for the cryptocurrencies to come into existence, people have taken a keen
interest in its growth and market, with multiple use cases for them, making it
the best time to invest and use cryptocurrency, through your digital
cryptocurrency wallet. The blockchain technology that cryptocurrencies are formed in make
transaction and trading much safer than that conducted through a bank.
If
we went with the idea that “History repeats” we could assume that
cryptocurrencies are just the beginning in what will be an economic revolution,
where we could expect digital currencies
that are far more stable will take the crown from bitcoin. As far as blockchain
is considered we could see that the currencies of the future will mostly be
utility based where there is no centre that regulates the supply of currency
and its value, eliminating the possibility of an economic calamity. All this,
however, is possible only with the mainstream usage of the present unit of the
beginning stage of the evolution, that is cryptocurrency, this can be achieved
only by educating the masses on the benefits of the blockchain system and cryptocurrencies.
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