It’s still a crazy idea, isn’t it?
Why should any reasonable person in this world even remotely consider exchanging the paper money that they can hold in their pocket for a digital currency or cryptocurrency?
Especially considering that, the tag “digital” fully discloses that you can’t hold it physically.
That’s the questions and thoughts of everyone who doesn’t understand the use of digital currency. And it’s actually okay to not understand the rationale behind having another form of currency — one that you can’t hold at that. After all, all that have existed as money in most of our lifetimes is paper money. Still, this doesn’t mean that the idea of a digital currency is a huge needless and irresponsible party.
To understand the rationale of a digital currency, it would help to look at the history of money and how we started using the paper money we treasure so much.
There Was a Time In History When There Was No Money
Unbelievable, right? But it’s true.
It helps to begin by being sure that you understand the definition of money. Money is simply a medium of exchange. And a medium of exchange simply means an intermediary item that’s generally accepted among a group of people or in a region to ease the buying and selling of goods.
Glyn Davies pointed out in his book “A History of Money: From Ancient Times to the Present Day” that the earliest indication of money was between 9,000 and 6,000 B.C. At the time, livestock, cattle in particular and farm produce like grains were used as a medium of exchange — aka money.
Bartering, which simply means two parties coming together to exchange what they each have and need, was the most popular way through which people acquired stuff. Of course, the world is a little too complex for it to be this simple. If this was all that existed, the chances of some people being significantly wealthier than others is limited. But there have been wealthy people throughout history.
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