The history of money – why do we need cryptocurrencies part I

On this site we write about topics related to cryptocurrencies on a daily basis. With you can buy these digital currencies. Have you ever thought while buying cryptocurrencies, why do you need the new money for the world? And how do they fit into the overall history of payment systems?

If you answered even once for the above questions “yes”, the cycle we start today will be a great form of education for you and our joint attempt to answer the above issues.

Lets start and don’t get bored …

How do you start any text to instantly get bored with the reader? Of course, with some boring and unmamilist definition. Calm down please. We will not provide you with this kind of snobbery and will not show off who, when and how described the “cash”. Now, when everyone is already relieved, let’s just determine what money is for.Yes, we know that we use it to buy bread rolls for breakfast in the morning. People also like to swap them into some nice, modern gadget. However, it’s not what we were thinking about. The more intriguing issue is … convenience! Money in its essence simply makes life easier. How would our world look without them?
To this day, historians are trying to imagine how exactly life looked like during the gatherer-hunting period. Certainly it was not easy. Somehow nobody came up with the idea of ​​exchanging the acquired goods for bitcoins (and vice versa). Instead, our ancestors preferred to hit themselves with maces rather than to trade with each other. Some example gives us a local vision in the Jivaro tribe that Ecuador resides in. Six out of ten men there die because of violence. These statistics in prehistory could have been much worse.

Does this mean that without money the whole world would be shaken by the wars of everyone with everyone? We leave this vision to subsequent films of post-apo and communists of the 70s, who in the letter called “Socialist Standard” drew a rather peculiar prophecy: “Money will disappear (…). Gold, in accordance with Lenin’s desire, will serve to build public toilets (…). “Well, it did not work, but let’s go further.

The convenience that money gives us is obvious, although we probably do not always notice it. Imagine that you want to buy delicious and still hot cakes in the morning. So you go to the baker. He will be happy to sell you his product, but he wants something in return. Let’s say eggs. All in all, nothing hard, but … you do not have chicken eggs at this moment. You would have to go to a chicken farm and replace it again with something that a poultry owner would like. “Three apples, please” – you hear when you ask for eggs. The case becomes more and more complicated, and your life begins to look like an RPG game! And think about that on the way back you wanted to also buy butter and cheese!

The above illustrates well why we need money. Society needs a tool with which it can easily exchange products or services in an easy and quick way. But when and who came up with such a brilliant idea and implemented it?

Did the Sumerians pay with money before it has become fashionable?

Despite appearances, the answer is not so simple. Is it possible to state clearly when the money appeared as such? The ancient Sumerians, in a sense, had their fingers in it. Anyway, you can risk saying that today they would be cryptocurrency fans. Do you know someone who is a real geek of technological innovations? The inhabitants of Mesopotamia were just such individuals. Their degree of curiosity about the world and experimentation was so huge that they invented even an innovative letter, circle, bronze smelting system, and – the most interesting in this case – a system of measures and weights. The latter were used in the context of trade, in which they no longer used exchanges such as “goods for goods” and “goods-gold / silver”.
Therefore, the question asked in the headline should be answered in a sense: yes! Okay, the gold did was not in the form of coins at that time, but it became a settlement unit.

Even their successors in the area of ​​Mesopotamia – the Amorites – created something that later developed over the centuries became a banking system. The code of their despotic ruler, Hammurabi, although most of us are associated with the regulation of social issues in accordance with the principle “eye for an eye, tooth for a tooth”, he introduced economic commercial law, purchase and sale contracts (such as Bitmarket’s ASKs and BIDs), lease or loans. Looking at innovative – as in the eighteenth century BC. – approach, you can think that before introducing payments using smartphones Hammurabi was only blocked by lack of technology …

Did the Egyptians create the first coin?

Did the creators of the pyramids (for the purposes of this text, we assume that they were not newcomers from another planet) invented coins? Again, not entirely. The Egyptians also liked to pay with metal – copper bars. Like their trading partners, or the inhabitants of Mesopotamia, they were settling accounts with the weighting system of a given ore. It certainly facilitated the trade, which played a huge role in the history of Egypt. Foreign trade and handicrafts (production of ornaments, dishes, weapons, clothing) were the fastest growing sectors of the economy. The key to the success of the pharaohs was therefore flooding them with the goods of their neighbors’ markets and making money on it. So they had a lot in common with modern rulers and businessmen. Only that the rulers of Egypt then put up pyramids, while our contemporary leaders are content with office buildings and stadiums. As you probably noticed, the Sumerians and Egyptians used various metals for billing. Why? Probably it was their durability and the fact that their neighbors also accepted these bars of gold, silver or copper as a form of payment. Just like today, when you buy bitcoins on you can pay for it, eg in commercial establishments accepting electronic currency (you can find it at, so the Egyptian chose precious metals because they were the most convenient form of currency at that time. However we more we go deepeer into history the more it gets interesting …

To be continued…

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