A medium of exchange is something people use to trade goods, services, or labor with one another , without the need for direct barter.

For example, in the early days of civilization, people practiced barter, which meant exchanging goods for other goods. If I had potatoes and you had eggs, we could trade with each other , but problems arise if you don’t need potatoes, or if we can’t agree on how many eggs are worth a certain amount of potatoes.

That’s why something universally accepted as valuable became necessary , so we wouldn’t always have to find someone who wanted exactly what we had to offer. This is where the concept of a medium of exchange comes in , something you can use to buy anything, because it is widely accepted.Throughout history, people have tried to use various forms of money as a medium of exchange . stones, shells, glass beads, whale teeth, Rai stones , until they eventually started using coins made of metals like gold and silver.Over time, people realized that metal coins were not ideal money because they were easy to counterfeit and difficult to verify. Some added other metals to coins to make fakes. It was also hard to carry and store metal coins.That’s why some people, mostly those involved in lending money and coin exchange, began offering services to store and verify metal coins. Anyone who deposited their metal with them received a paper certificate. This paper became a medium of exchange, while the metal remained with the custodians. This is how the first banks were formed.The word “bank” comes from the Italian word “banco,” which means a bench or table where money changers and moneylenders conducted their business.

So, banks were created because gold coin was not a good form of money. With Bitcoin, we don’t need banks. With Bitcoin, anyone can be their own bank because Bitcoin is a superior form of money. However, it is not excluded that under the Bitcoin standard there are Bitcoin banks ,no one can forbid anyone from opening a Bitcoin bank and offering Bitcoin custody services.

A medium of exchange is something people use to trade goods, services, or labor with one another , without the need for direct barter.

For example, in the early days of civilization, people practiced barter, which meant exchanging goods for other goods. If I had potatoes and you had eggs, we could trade with each other , but problems arise if you don’t need potatoes, or if we can’t agree on how many eggs are worth a certain amount of potatoes.

That’s why something universally accepted as valuable became necessary , so we wouldn’t always have to find someone who wanted exactly what we had to offer. This is where the concept of a medium of exchange comes in , something you can use to buy anything, because it is widely accepted.Throughout history, people have tried to use various forms of money as a medium of exchange . stones, shells, glass beads, whale teeth, Rai stones , until they eventually started using coins made of metals like gold and silver.Over time, people realized that metal coins were not ideal money because they were easy to counterfeit and difficult to verify. Some added other metals to coins to make fakes. It was also hard to carry and store metal coins.That’s why some people, mostly those involved in lending money and coin exchange, began offering services to store and verify metal coins. Anyone who deposited their metal with them received a paper certificate. This paper became a medium of exchange, while the metal remained with the custodians. This is how the first banks were formed.The word “bank” comes from the Italian word “banco,” which means a bench or table where money changers conducted their business.

So, banks were created because gold coin was not a good form of money. With Bitcoin, we don’t need banks. With Bitcoin, anyone can be their own bank because Bitcoin is a superior form of money. However, it is not excluded that under the Bitcoin standard there are Bitcoin banks ,no one can forbid anyone from opening a Bitcoin bank and offering Bitcoin custody services.