Money will always be necessary today; it is the greatest concern of all society and the great cause of great sleeplessness. But where did he come from? Why are we so dependent in today’s society on the use of paper money? What is its nature? The journey through the history of money could be said to begins with trueque, a continuous evolution without any type of monetary exchange, that is, barters from a reference value and that they were exchanged in barter. Barter is the exchange of goods or services between two or more people in exchange for other goods or services without the need for any type of money to be involved. For a barter to occur, both parties must agree to an exchange contract, known as a ‘swap’.
Although initially barter was the necessary instrument for trade, it had restrictions at the time of exchange that made man have to have money to be able to exchange goods in a more effective way, with the division of labor that it was emerging in ancient cultures, people realized that they needed a means of exchange to offer goods they had and acquire goods they needed, and money was born. An example: two hens (which are valued in two bags of wheat each) for one sheep (which is valued in four bags of wheat). It is what is known as the money of the merchandise facilitating the process.
The last ten years have changed the landscape of the money economy in ways that no one could have foreseen, money continues to evolve. For years, and in parallel with the digitization of society, various electronic payment methods have emerged with force, which emerged in the 90s.
This type of money can be used to pay for goods and services over the internet or other electronic means. Once the buyer’s authorization is received for the payment to be made, the seller contacts the issuing bank and receives the transfer of the corresponding amount.
The latest evolution of money is crypto currencies, which are digital means of exchange. It is a virtual currency that uses digital encryption in its operations, such as money transfers or the payment of a certain product or service.
The first crypto currency, and the most popular for now, is the bitcoin created in 2009. Since then many others have appeared, with different characteristics and protocols such as Litecoin or dogecoin. These types of currencies only exist on the web and their value is sustained because there is a buyer and a seller who support it for a given transaction, anywhere in the world. Its use is still a minority, but it is continuously growing.
Currency changes have always existed in the history of mankind: gold replaces truck as a currency for transactions, banknotes replace gold as a means of storage of value, and crypto currencies are about to replace paper currency, this system is based on the trust of its users, as well as its usefulness and popularity, users are the main ones that govern this new payment model. Bitcoin is neither seen nor touched; it is a cryptographic code that people exchange as a means of payment. Each owner has one or more electronic wallets with keys to receive and make payments. Its process is completely open and transparent; in fact there are databases where all movements and transactions are recorded.
Bitcoin does not depend on governments or banks, in this way it facilitates and speeds up all processes, as there are no intermediaries; transfers charge greater credibility, in addition to speed, avoiding third-party commissions. Without precedent, the future is changing in fact, according to many experts in the case of bitcoin, they report that it acts as a volatile investment strategy, which as a payment method, in colloquial terms, is more of a kind of truck than a payment method, because it is exchanging a good for a good it is more like a precious metal dimension than a legal tender.
While the number of merchants accepting crypto currencies has steadily increased, they are still a minority for crypto currencies to be used more widely, they must first gain widespread acceptance among consumers. However, their relative complexity compared to conventional currencies will likely put off most people, making them prefer to barter. Click this image below to start your bitcoin journey.