Post
Topic
Board Bitcoin Discussion
Re: Evolution of currencies
by
nick_nick
on 13/07/2018, 19:10:18 UTC
First, humans exchanged commodities. You could eat it, burn it for energy, modify it to create tools or jewelry. You exchanged something useful for something useful.

* It was energy.

Then, humans exchanged commodities for gold. You couldn't eat it or burn but it was still possible to modify it.

* It was poor energy.

Then, humans used papers checks or bank notes. It wasn't very useful, but you still could burn it during a very cold winter.

* It was very poor energy.

Now, we wants to use Cryptocurrencies. You can't do anything with it.

* It is not energy but proof of destruction of energy.

Something looks wrong. We should exchange potential energy, not destroyed energy.
I do side with you that currencies have undergone evolution. However, one can hardly establish a link between currency and energy.The changes seen from the barter system where goods were exchanged for goods till the era of cryptocurrencies are practically base on certain factors:
 divisibility
 equity
 portability
 convenience
Humans actually moved from the barter system to paper money due to the problem of divisibility. People rarely know the quantities of one good in exchange for the other and hence thought of an alternative way to ensure equity. This has however translated to the era where there are a lot of distant transactions and people thinks of digital money to make life easier and faster in the face of technology.