During the begrudgingly tough Medieval period. Blacksmiths used to be the banks of the day during their time. They would protect the huge amount of gold deposited by the citizenry of the country. Blacksmiths wouldn't not provide these services for free and would actual charge a small fee, typically a percentage of the amount of gold or silver stored with them.
Today. However, due to the nature of the money system not being tired for a Gold standard. Currency (official term for fiat currency and not Money) pays a annual rate of interest everything. Although this varies based upon the Interest rate set by the central bank of the Nation. Largely transactions done today are electronic form of payment and down the road possibly all transactions will be digitised as is becoming the case with the Nordic countries.
To store large amounts of value outside of the financial system today, you are to have a huge amount of space to store anything meaningful. Down below i have listed the value density of different items if they were to be kept in storage.
A crisp stack of 100x $100 bills equates to be about 6.14 inches long, 2.61 inches wide, and 0.43 inches tall.
That’s a volume of 112.92 cubic centimeters or about 6.89 cubic inches for those using imperial measurements.
A stack of 100x $100 bills is worth $10,000. So the paper money’s ‘value density’ is about $88.55 per cubic centimetre.
As of July 5th 2017, the gold price in dollars for a kilo is $39,390.46, equating to roughly $1330~ dollars per cubic centimetre. Therefore gold can store far more value in a compressed space. A kilogram bar of gold is 11.55 cm long, 5.25 cm wide, and 0.92 cm tall, for a total volume of 55.79 cubic centimetres.
1,000 x 100 Swiss franc note has value density of $900~ per cubic centimetre.
500-euro notes, for example, currently have value density of $420~
As of July 5th 2017, the silver price is dollars for $518.92. With has a valuue density of $11.
However for bitcoin which is just a string of digits meaning there isn't alot of "stuff" to store as it is all digital. With a Bitcoin 250-pixel QR code coin it takes up a meger amount of space per cubic centimetre roughly 0.21 cubic centimetres in volume. This is very insignificant amount of space and you have the potential to store hundreds of thousands, Millions and even tens of millions of dollars within a very small amount of space of only 0.21 cubic centimetres compared to all over asset classes which require ever increasing amount of space to store in comparison to Cryptocurrencies.
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